Reply
Valued Member
shniku
Posts: 31
Registered: ‎01-04-2008

MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article

[ Edited ]

 

Hello everybody. This is my plan for getting the AmEx Centurion card.

 

Step 1: Get AmEx Gold.

Step 2: Spend 500k with it in a year.

Step 3: Wait for the invitation.

 

It sounds simple, but I'm only 22, my net wealth is in the negatives, and I'm a full time college student. I believe AmEx sends you an invitation once you pass 300k, so just to be safe, I set my goal to 500k. You might ask, "How in the world can you spend 500k if you're broke?" That's a good question, but I think I have the answer. All you have to do, is buy and sell items. Of course, throughout the whole process, you at least have to break even for the plan to work.

 

What you buy and sell is up to you, but I myself am doing this with high-end computers. I buy them directly from the manufacturers, and I sell them on eBay. I usually get quantity discounts of up to 30%. I don't really care about making money, so my mark-up is only 5%, and that is just to cover the storage and shipping  costs. When I drop-ship, I charge the costomer the same ammount that I pay.  In reality, my customers are saving up to 30% on each computer I sell, and I am spending thousands on my AmEx.  

 

I was really surprised when I called up AmEx and they told me I had spent 130k in like a 6 month period. I had no idea I was doing such large volume, but 10k here, and 10k there quickly adds up. Hopefully, I will be close to 500k at the end of the year, but just in case I'm not, I plan to buy the rest in gold bullion, and then re-sell the gold to Northwestern Territorial Mint. If I sell right away, I lose like 3% of what I spend on the gold, but if I buy on a dip, I just have to wait for gold to go up 3% then I don't lose anything. 

 

All of this for credit card might be too much work, but what have I got to lose? Even if I get the invitation, I am not sure I can pay the 5k innitiation fee, and 3k anual fee. Hopefully they will negotiate with me and waive the fees, since they are already making money off of me.

 

Anyways, that's my plan. Post if you have different ideas.  :smileyhappy:

 

Message Edited by shniku on 12-05-2009 04:49 AM
Message Edited by shniku on 12-05-2009 04:49 AM
Message Edited by shniku on 12-05-2009 04:51 AM
Message Edited by shniku on 12-05-2009 04:52 AM
Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008

Re: MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article

What can the Centurion card do for you?
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article

+1

$5K plus another $3K seems like a lot for what frankly seems to be a show-off card. (sorry) And the bit about buying gold and then selling it at a loss; I don't get that at all. Bad enough that you're willing to pay outrageous fees for a credit card, but accepting losing money on gold transactions??

But it does sound like your plan is working, if having a Centurion card is your goal. I guess. :smileyindifferent:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Super Contributor
concorduser
Posts: 6,025
Registered: ‎09-18-2007

Re: MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article

Great idea. Once you get your centurion card, get me an AU card for me. Congrats on your enterprenureship. Banks love the people like you. Michael Dell started Dell from him dorm room. Who know one day we might see computers with you name on them.

Established Contributor
Watchmann
Posts: 985
Registered: ‎05-14-2008

Re: MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article

[ Edited ]

I'm sure you are fully complying with all the Federal and State Tax codes in this endeavor, no?  And have all the requisite business licenses to run your business?  After those details are complete go ahead and get the Centurion Card, for whatever reasons you think you need it.  If it will make you feel better than do it.  But as you get some wisdom you'll find that having something like a Centurion Card won't mean much in how it affects your life.

 

It would seem to me the best business plan would be one that actually makes money and not one that is focusing on getting a product that will end up costing you money.  If would seem that you are making squat in your venture with the 5% markup being eaten up in shipping and carrying costs..  And now you want to drop $8k on fees for one year of the Card, even losing money buying bullion and selling at a loss just to make AMEX volume.  Does that make sense?  To me it doesn't, but your priorities seem to be in a different direction.

 

You say you aren't interested in making money.  WHY NOT?  That's what business is about.  It seems your whole reason for running this hobby business is odd and it eventually will fail on its own merits. 

 

It would seem you are overly into image, as you have posted this message over on the Auto Forum: 

http://ficoforums.myfico.com/fico/board/message?board.id=autoloans&thread.id=8933  A 22yo doesn't need two new BMW's.  Slow down and stop with the outward appearance of your life and work on actually making some money for the future.

Message Edited by Watchmann on 12-05-2009 10:04 AM
Established Member
partsworks
Posts: 35
Registered: ‎01-25-2008

Re: MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article

[ Edited ]

"How in the world can you spend 500k if you're broke?"

 

There are a lot easier ways to max your spending out than buying and selling crap on ebay and with a lot less risk.

Buy dollar coins from the US mint through their direct ship program and deposit them in your account. The shipping is free, they count as a purchase so you earn cash back.

Google it and you will find mega threads on fatwallet and flyertalk that outline the deal.

I hope you have been using an Amex card that offers cash back like the blue cash card.

[Edited].

 

A friendly reminder to keep all responses friendly & respectful. ~LilMirth

Message Edited by LilMirth on 12-05-2009 01:34 PM
Valued Member
shniku
Posts: 31
Registered: ‎01-04-2008

Re: MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article

I think that the challenge itself is pretty exciting. I just want to see if I can do it. 
Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008

Re: MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article


shniku wrote:
I think that the challenge itself is pretty exciting. I just want to see if I can do it. 

If it's about a challenge go for it.  I'm all about challenges.  But I would still be concern about paying those AF's.  You seem cleaver enough to get them to waive the AF's.  That would be your second challenge.  Good luck!!

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008

Re: MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article


shniku wrote:

 

Hello everybody. This is my plan for getting the AmEx Centurion card.

 

Step 1: Get AmEx Gold.

Step 2: Spend 500k with it in a year.

Step 3: Wait for the invitation.

 

It sounds simple, but I'm only 22, my net wealth is in the negatives, and I'm a full time college student. I believe AmEx sends you an invitation once you pass 300k, so just to be safe, I set my goal to 500k. You might ask, "How in the world can you spend 500k if you're broke?" That's a good question, but I think I have the answer. All you have to do, is buy and sell items. Of course, throughout the whole process, you at least have to break even for the plan to work.

 

What you buy and sell is up to you, but I myself am doing this with high-end computers. I buy them directly from the manufacturers, and I sell them on eBay. I usually get quantity discounts of up to 30%. I don't really care about making money, so my mark-up is only 5%, and that is just to cover the storage and shipping  costs. When I drop-ship, I charge the costomer the same ammount that I pay.  In reality, my customers are saving up to 30% on each computer I sell, and I am spending thousands on my AmEx.  

 

I was really surprised when I called up AmEx and they told me I had spent 130k in like a 6 month period. I had no idea I was doing such large volume, but 10k here, and 10k there quickly adds up. Hopefully, I will be close to 500k at the end of the year, but just in case I'm not, I plan to buy the rest in gold bullion, and then re-sell the gold to Northwestern Territorial Mint. If I sell right away, I lose like 3% of what I spend on the gold, but if I buy on a dip, I just have to wait for gold to go up 3% then I don't lose anything. 

 

All of this for credit card might be too much work, but what have I got to lose? Even if I get the invitation, I am not sure I can pay the 5k innitiation fee, and 3k anual fee. Hopefully they will negotiate with me and waive the fees, since they are already making money off of me.

 

Anyways, that's my plan. Post if you have different ideas.  :smileyhappy:

 


I have one concern, primarily, with your plan:  "I don't really care about making money..."

Therefore, may I suggest a few alterations:

 

1.  Plan to make a profit, make this the goal and objective

2.  Use your credit, in whatever forms, to the objective of profit

3.  Have contingency plans in case, as is often the case, things don't go exactly as planned

 

Considerations:

1.  Spending alone does not qualify you, there is the financial position.  AMEX will request to know your income and assets.  Will you lie? 

2.  AMEX very likely will request a "Financial Review" before allowing you to spend consistently those high values.  This includes tax returns and veriffying cash balances with banks and depository institutions.

3.  If your cash balances and FR don't make the cut, they can cut you off at any time, and I have seen this first hand, which can break your float mid-cycle.

 

Therefore:

1.  You need to consider that you have to have profit to pay for the annual fee, initiation fee and expenses of operations.

2.  You need to build some type of profit reserves to cover potential losses, such as you explained. 

3.  Your gold plan is very speculative, and not adivsable.  You would do better by looking into the purchase of scrap gold investments which buy substantially below market spot....therefore not buying at a loss.

 

 

Anyway, good luck with whatever you do, but you need to have contingency for Amex FR and possible freezes on account during those processes.  They are very common.

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008

Re: MY GOAL: Get The AmEx Centurion Card - MY PLAN: read in article


It would seem you are overly into image, as you have posted this message over on the Auto Forum: 

http://ficoforums.myfico.com/fico/board/message?board.id=autoloans&thread.id=8933  A 22yo doesn't need two new BMW's.  Slow down and stop with the outward appearance of your life and work on actually making some money for the future.

Message Edited by Watchmann on 12-05-2009 10:04 AM

You're 22.  Enjoy your two BMW's.  And I hope you get the Centurion card too.   Get a pair Ralph Lauren shades too(I got mine). You will need them because your future is very bright! Goodluck.


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+