Out of the Market?

["W"]

100K on a credit card???? Highest balance I think I ever had was 2500 in my life.... I bet they pay 300 month in interest and fees on 100K

[ShadMan]

Originally Posted by "W"

100K on a credit card???? Highest balance I think I ever had was 2500 in my life.... I bet they pay 300 month in interest and fees on 100K

It would be much higher than that. You'd pay around $800-$900/month in interest on a $100k credit card balance. I've used credit cards to fund large purchases before rather than paying cash so my cash could be leveraged in other ways. I had well over $100k at one point on one of my cards, but was able to pay it off in a few months and made around $40k off of it (essentially investing on margin ). I also charge everything on my AMEX (including paying many of my bills with it) and pay it off at the end of the month. My AMEX bill is typically $4k-$5k each month, but I rack up frequent flyer miles like crazy. I put a $350 dinner on it tonight and I'll get 350 miles for it. Why pay cash when there is no interest charge and you get miles?

The people who get in trouble are the ones who live beyond their means and rely on putting $1k or more on their cards each month just to get by. That gets out of control very quickly. I've seen some good people get in way over their heads that way.

[ckinchen]

Originally Posted by ShadMan

It would be much higher than that. You'd pay around $800-$900/month in interest on a $100k credit card balance. I've used credit cards to fund large purchases before rather than paying cash so my cash could be leveraged in other ways. I had well over $100k at one point on one of my cards, but was able to pay it off in a few months and made around $40k off of it (essentially investing on margin ). I also charge everything on my AMEX (including paying many of my bills with it) and pay it off at the end of the month. My AMEX bill is typically $4k-$5k each month, but I rack up frequent flyer miles like crazy. I put a $350 dinner on it tonight and I'll get 350 miles for it. Why pay cash when there is no interest charge and you get miles?

The people who get in trouble are the ones who live beyond their means and rely on putting $1k or more on their cards each month just to get by. That gets out of control very quickly. I've seen some good people get in way over their heads that way.

$350, where did you go? I took my boys to the Steam Boat Steak House over on the beltway tonight, I love that place. Our firm has our Christmas party there every year.

Ok, sorry, carry on.

[Bluechip]

Originally Posted by ShadMan

It would be much higher than that. You'd pay around $800-$900/month in interest on a $100k credit card balance. I've used credit cards to fund large purchases before rather than paying cash so my cash could be leveraged in other ways. I had well over $100k at one point on one of my cards, but was able to pay it off in a few months and made around $40k off of it (essentially investing on margin ). I also charge everything on my AMEX (including paying many of my bills with it) and pay it off at the end of the month. My AMEX bill is typically $4k-$5k each month, but I rack up frequent flyer miles like crazy. I put a $350 dinner on it tonight and I'll get 350 miles for it. Why pay cash when there is no interest charge and you get miles?

The people who get in trouble are the ones who live beyond their means and rely on putting $1k or more on their cards each month just to get by. That gets out of control very quickly. I've seen some good people get in way over their heads that way.

Me too...I have had a lot of vacations paid for this way. Not only flights but hotel rooms also..

[ckinchen]

Originally Posted by Bluechip

Me too...I have had a lot of vacations paid for this way. Not only flights but hotel rooms also..

Earlier this year I received one of the new Cap One Venture cards, I get 2 miles for ever dollar spent. I run my firms monthly marketing budget and other expenses through it and earn enough points to get around $500 of gift cards every month, sometimes more.