topic Re: Credit usage in Credit Cards

Credit usage

washington12 — Sat, 29 Oct 2016 01:55:14 GMT

Let's say you have like a 100k limit on a card. What do you or can you use it for? Could you purchase a care, boat, or other high priced items? Or would they shy away from you buying a Mustang on a credit card?

Re: Credit usage

grillandwinemaster — Sat, 29 Oct 2016 02:15:16 GMT

I do not have a 100k credit card, but if I did, I would fully expect that if I chose to buy a new Mustang, it should go through on the first swipe!

Re: Credit usage

MugenCivicSi83 — Sat, 29 Oct 2016 02:17:37 GMT

@grillandwinemaster wrote:
I do not have a 100k credit card, but if I did, I would fully expect that if I chose to buy a new Mustang, it should go through on the first swipe!

DITTO!

Re: Credit usage

Credit_hawk — Sat, 29 Oct 2016 02:20:04 GMT

@grillandwinemaster wrote:
I do not have a 100k credit card, but if I did, I would fully expect that if I chose to buy a new Mustang, it should go through on the first swipe

I've got a 2015 GT Premium with the Performance Pack! Get one!!

Re: Credit usage

Anonymous — Sat, 29 Oct 2016 03:39:22 GMT

@washington12 wrote:
Let's say you have like a 100k limit on a card. What do you or can you use it for? Could you purchase a care, boat, or other high priced items? Or would they shy away from you buying a Mustang on a credit card?

If you have a 100K limit, chances are slim to none that the interest rate (long term) is going to be better than the rate you can get on an auto loan. Or a boat loan. So it wouldn't be very smart to finance these things on a CC. But if you have it and want to, I would expect the charge to go through.

Re: Credit usage

Anonymous — Sat, 29 Oct 2016 03:48:50 GMT

If someone was qualified for a 100k credit card limit, Im extra sure they would be able to buy a car or other high priced items on it. I'll be expected with that kind of credit limit and wouldn't be a surprise. In fact, people with much much much lower limits put down payments on their car purchases all the time on their credit card with no problem.

Re: Credit usage

Anonymous — Sat, 29 Oct 2016 04:42:04 GMT

I imagine it would be like any other purchase. Of course a loan would have better rates, but lets say this person has income to pay it off either right away or before the intro rate wears off. Can you imagine the rewards points from a purchase like this?

Re: Credit usage

iced — Sat, 29 Oct 2016 04:50:48 GMT

It's a nice thought, but most dealerships won't let you pay for a car entirely with a card - they don't want to eat the merchant fees.

That said, it is nice to buy something for 20-30k and get miles or points for it. I have done a 15k purchase with one swipe before - in my case I bought a loose GIA diamond for a ring I was having made.

Re: Credit usage

Anonymous — Sat, 29 Oct 2016 05:12:12 GMT

If I had a 100K limit on a card...

Well, if it was like a new card with a relatively long 0% intro offer (more than a year) and rewards, and I had the income to support getting that sucker paid off within the intro period (which I'm sure I would if I had a brand new card with a 100K limit), heck yeah I'd buy a car on it if a dealership let me.

And then I would figure out what the heck I'd do with my pile of rewards. Hahaha.

Re: Credit usage

Geordi — Sat, 29 Oct 2016 05:30:05 GMT

Agree that most dealerships would not want to eat the merchant fee on such a purchase.

Easy enough to find out though.

Someone with a $50K SL, please go and try to buy a Chevrolet Spark LS on your card.

If you can't buy a Spark, you definitely wouldn't be able to buy a Mustang.

Re: Credit usage

austinguy907 — Sat, 29 Oct 2016 06:45:16 GMT

Really??? **bleep** are you guys smoking or is this delusional world?

First off no dealership is going to let you put 100% of a vehicle on a CC because of the chances you will do a chargeback on it and they lose the car and the cash.

Secondly most dealerships cap you at a $5K limit on CC's for DP's but, if you have work done on the card then it's a different story since they have a higher margin on "service".

3rd if you have 100K CC CL you know better than to even contemplate this in the first place.

Any issuer approving this is just insane anyway although they would love the swipe fee for a big ticket item like this.

Re: Credit usage

Anonymous — Sat, 29 Oct 2016 07:05:18 GMT

If I had a 100k card. I still wouldn't charge more than the usual that I do now. To me that just sounds scary to charge that much. Debt is a scary thing! Don't do it!!! 😂

Re: Credit usage

Anonymous — Sat, 29 Oct 2016 13:34:17 GMT

@austinguy907 wrote:
Really??? **bleep** are you guys smoking or is this delusional world?

First off no dealership is going to let you put 100% of a vehicle on a CC because of the chances you will do a chargeback on it and they lose the car and the cash.

Secondly most dealerships cap you at a $5K limit on CC's for DP's but, if you have work done on the card then it's a different story since they have a higher margin on "service".

3rd if you have 100K CC CL you know better than to even contemplate this in the first place.

Any issuer approving this is just insane anyway although they would love the swipe fee for a big ticket item like this.

It wasn't a credit card but there is a celebrity who apparently put a whole Lamborghini on a Charge Card. Also,it's possible majority of dealerships cap you off at 5k for a down payment on a card, I don't know. But I know for a fact that someone I knew put 12k on his card for a down payment on a Nissan GTR.

Re: Credit usage

NRB525 — Sat, 29 Oct 2016 15:09:26 GMT

@Anonymous wrote:
@austinguy907 wrote:
Really??? **bleep** are you guys smoking or is this delusional world?

First off no dealership is going to let you put 100% of a vehicle on a CC because of the chances you will do a chargeback on it and they lose the car and the cash.

Secondly most dealerships cap you at a $5K limit on CC's for DP's but, if you have work done on the card then it's a different story since they have a higher margin on "service".

3rd if you have 100K CC CL you know better than to even contemplate this in the first place.

Any issuer approving this is just insane anyway although they would love the swipe fee for a big ticket item like this.
It wasn't a credit card but there is a celebrity who apparently put a whole Lamborghini on a Charge Card. Also,it's possible majority of dealerships cap you off at 5k for a down payment on a card, I don't know. But I know for a fact that someone I knew put 12k on his card for a down payment on a Nissan GTR.

There have been reports of large amounts charged to credit cards to pay for vehicles, then the credit card is paid off to move the funds to another lower cost loan.

However, I would really seriously doubt the dealer is "eating the swipe fees" on such a transaction. They may whine that you are eating their profit, but the price you are paying for the car is hardly a set sticker price. You most likely would be paying the swipe fees in a slightly higher car price, in some form or other, or the dealer is making a calculation that tells them they'd rather get the Mustang off the lot and have your cash in their till.

Re: Credit usage

BirchBarlow — Sun, 30 Oct 2016 00:38:30 GMT

Good luck finding a dealership who will let you pay with a card. They either refuse CCs or at most only allow a nominal amount to be charged because they would be subject to transaction fees, they would open themselves up to the possibility of chargebacks, and the dealer could even be subrogated in the event that the customer defaults on payments. So don't expect to see car dealerships show up on rotating bonus category for your Chase Freedom or your Discover card any time soon. That would be too good to be true.

Re: Credit usage

Anonymous — Sun, 30 Oct 2016 01:30:48 GMT

Y'all are probably right about them not accepting a CC for the entire car because of the swipe fee.. But I think you're wrong on the Chargeback scenario.

I run a business and I have direct contact with a higher up Supervisor at my Merchant Services Risk department. On really large transactions (usually $4K or above) I will get in contact with her and they verify certai things and take steps in regards to making sure it's not fraud and the card holder is actually making the purchase etc etc. So in these special transactions were a human on the Merchant Services side is getting involved, a customer can't just 'up and call and request a chargeback' one day..

Re: Credit usage

Anonymous — Sun, 30 Oct 2016 04:16:45 GMT

Its only money. A 100k limit is 8x my best limit. if they mde 8x as much as me its an easy done deal. An impulse buy and turning around a week later to pay it all off by liquidating funds or a different loan/loc is a good move. Think barret jackson auctions. Im sure you put down a sweet deposit and they collect it next couple business days buts lets say you didnt have that trust luxury.

I listen to KFI and few weeks ago Tim ConwayJr had a light chat with Charles Barkley who was alreqdy there talking to the sports station in the same building. He said the worst night he had in vegas was -1.2M. My worst gambling ever hasnt even been -1k. Its all perspective and proportions. Gambling and charging large sums of money isnt whqt im trying to compare of course but the extra zeros is so simple but still mind blowing. Even though i worked with numbers and high dollar inventory all day long.

Re: Credit usage

Wolfeyy — Sun, 30 Oct 2016 05:10:00 GMT

You could. However, it would not be a wise choice considering the interest rate of a cc is never better than the typical loan of a big ticket item such as a car...

Re: Credit usage

Anonymous — Sun, 30 Oct 2016 16:45:48 GMT

Whats the difference between a 75k mustang and 75k worth of jewelry charged on a credit card?

The jewelry doesn't jump out of the owners hands and injure 5 spectators.

Re: Credit usage

Anonymous — Sun, 30 Oct 2016 21:55:27 GMT

I've purchased trucks for my company as a regional manager and always put the taxes/fees/registration on our company AMEX. They always offer to finance this but we don't pay interest on stuff like that, just on the charge card and pay it off as normal.

Normally these charges are between 5-6k, the dealership never blinked at the AMEX.