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Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Using your CL


jdp2134 wrote:

what is the point of making a 5k purchase on a CC if your going to just PIF anyway? Mine as well just pay the 5k at time of sale. That to me isnt using your CL at all since your PIF anyway. Using your CL to me is making a big purchase and having a plan to pay it off in 6 or 12 months or whatever and having your money work somehwere else for the time being.

 

Dont get me wrong here people im not saying that i wont continue to play the game for years to come im just playing devils advocate.

 

If you know you are going to be helpin a kid out with loans or whatever you already know how to play the "game" but why continue to play it so religiously after you have mortgages,cars, etc.?


Did you ever think I might get a 1.25% to 5% or possibly even higher reward?

Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007
0

Re: Using your CL

I have a few cards with relatively high CL and I use 0.1-1.5% of those limits. I have cards with relatively low APR and I have never paid interest.

Having high CL's allows me to

 

1. Ask for high initial CL on new applications.

 

2. Ask for higher CLI's.

 

3.Have funds for emergencies.

 

4. Satisfy my ego.

IN VINO VERITAS.
Established Contributor
cobaltnv
Posts: 640
Registered: ‎09-02-2008
0

Re: Using your CL


jdp2134 wrote:

what is the point of making a 5k purchase on a CC if your going to just PIF anyway? Mine as well just pay the 5k at time of sale. That to me isnt using your CL at all since your PIF anyway. Using your CL to me is making a big purchase and having a plan to pay it off in 6 or 12 months or whatever and having your money work somehwere else for the time being.

 

Dont get me wrong here people im not saying that i wont continue to play the game for years to come im just playing devils advocate.

 

If you know you are going to be helpin a kid out with loans or whatever you already know how to play the "game"  to get your scroe where it needs to be but why continue to play it so religiously after you have mortgages,cars, etc.?

Message Edited by jdp2134 on 09-06-2009 09:05 PM

There are a few reasons to make a large purchase on a credit card and pay in full.
1) convience
2) many credit cards offer you additional purchase protection/warranty
3)  if you choose your card wisely you can get rewards 1-5% sometimes higher
As far as having your money working for you instead of paying off the credit cards immediately. Unless you have some very low promotional interest rate (or are an outstanding investor) the interest you will pay to the ccc will be much higher than any gains your money will make elsewhere. 

 

TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

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Contributor
jdp2134
Posts: 87
Registered: ‎07-23-2009
0

Re: Using your CL

lol at satisfying your ego.

 

Ya i guess the rewards plays a big part. Since im just strictly cash rewards since i dont do any hardcore travel or nothing i guess using it all the time,payin it off, would let me get some decent money back at the end of the year.

 

And the protection is a good one too.

 

 

Enjoyed the discussion. Thanks.

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Using your CL


cobaltnv wrote:

jdp2134 wrote:

what is the point of making a 5k purchase on a CC if your going to just PIF anyway? Mine as well just pay the 5k at time of sale. That to me isnt using your CL at all since your PIF anyway. Using your CL to me is making a big purchase and having a plan to pay it off in 6 or 12 months or whatever and having your money work somehwere else for the time being.

 

Dont get me wrong here people im not saying that i wont continue to play the game for years to come im just playing devils advocate.

 

If you know you are going to be helpin a kid out with loans or whatever you already know how to play the "game"  to get your scroe where it needs to be but why continue to play it so religiously after you have mortgages,cars, etc.?

Message Edited by jdp2134 on 09-06-2009 09:05 PM

There are a few reasons to make a large purchase on a credit card and pay in full.
1) convience
2) many credit cards offer you additional purchase protection/warranty
3)  if you choose your card wisely you can get rewards 1-5% sometimes higher
As far as having your money working for you instead of paying off the credit cards immediately. Unless you have some very low promotional interest rate (or are an outstanding investor) the interest you will pay to the ccc will be much higher than any gains your money will make elsewhere. 

 


I agree that debt for the sole sake of having credit available is a bad idea.  I also agree that rewards are a good way to maximize the value of a CL.  If you have reimbursable work expenses, plus normal month to month cash expenses that can be run through a CC, why not gain the monetary rewards back.

 

As for the putting money to use, I can say for those who are self employed, either full or part time, there are often times that using short term use of CC's can be advantageous.  I do NOT recommend putting monthly "burn" on CC's.  However, I have on many occassions enjoyed a 10-30% return on money (in 2 to 6 months) and had used my CC as the capital.  This has ranged from inventory items ordered or IT projects which involved equipment in which I would be paid 60 to 90 days later (after install and invoicing).  In these examples, I paid 2 to 3 months interest at 9-13% APR while enjoying a 10-30% return in as little as 2 to 3 months (120-340% APR return).

 

However, I do utilize Business CC's, LOC or net accounts most of the time for these types of transactions.  But, there are many individuals who have used personal resources to fund business ventures.  Just don't pay the rent and payroll on CC's.  Whenever these are used, it should be backed by some asset or receivable.  Expenses need to be funded in other ways.

 

 

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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)
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Frequent Contributor
Sparkz1920
Posts: 271
Registered: ‎08-09-2009
0

Re: Using your CL

I kinda agree

 

Thats why i dont need a high limit. Im fine with maybe 2k if i can.

 

Then i can charge 200 and pay 1/4 of it if i want to and util will still be low, unlike now where my limit is 200 or 250 and i cant chance not PIF every month


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