A Ranking Question- Blogger With Custom Domain

I don't have money to buy hosting right now, but I do have a few domains. My solution to this was setting up a blogger blog for my niche site and use the domain that I purchased instead of the default blogspot subdomain. What I'm wondering is if this will let me rank better than being a subdomain of blogspot?

The whole reason I switched to a custom domain is because I don't think google likes blogspot blogs. Will google still punish me for using blogspot hosting?

Hopefully someone else has experience in this department, because I'd like to start my niche site tonight

I've gotten blogspot blogs to position 1 before, it didn't seem harder than any other site. I think google actually likes Blogspot because it is theirs.

My experience has always been that Google favors blogspot blogs, since it is their own web property. The downside is that you really don't "own" the content that you create. Should google decide they don't like your site, they remove it and your hard work and any potential earnings are gone.

However, if you don't have money for hosting, it is better to start some where. ie. blogspot until you make enough money to pay for premium hosting services. Get to work!

Thanks for your replies guys, they are very helpful. I'll go ahead and use blogspot for now!