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.

 

 

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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)
05/18/2005 TU: 563, EQ: 580, EX: 549