Can I make a very large purchase at once, combining 5-6 cards entire limits?!

[SouthJamaica]

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@Anonymous wrote:

Hello,

can I just purchase, say, an expensive car with credit cards?! Using 5-6 cards of $6000-15000 limits to make around $50000.

The reason is not to use credit on cards, with interest. Rather, I have the savings anyway, I do not want auto loan or credit, I will pay in full on time as usual; I just want the rewards and bonuses, and keep activity on my cards.

I have never made such large purchases with my cards (very low credit utilization), nothing more than an international plane ticket, guitar and macbook.

So, the actual question is, can a bank get suspicious and block my use of $9000?

yes

Or if I make swipes of $8000 at once, using 6-7 cards from different banks,

would all banks see this in their system and be alerted.

Or can I just even buy a condo if I wanted, granted that I am within my limits provided in my cards?

Thanks in advance,

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you would just be looking for trouble

[awp317]

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@Creditplz wrote:
I tried paying for my Ram 3500 on card and was denied by the dealer, also Porsche said no to Amex and Visa above 10,000 so I just financed. Has anyone else ever been successful putting 10,000+ on a card at a dealership?

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I had that happen buying a silverado. Just said "guess im buying from another dealer than", procceded to get up and they immediatly change their tone. All a dealer wants to do is make a sale. Theres so much margin left they can afford the 2-3% fee. 

[Anonymous]

Maybe there's plenty of margin left with your typical auto shopper, but not for someone that goes in armed with plenty of product knowledge and experience.  For someone like this, I highly doubt the dealer is going to be willing to lose another $500-$1000+ by accepting credit card(s) as the form of payment.  Used cards are a different story as there's a ton of wiggle room there, but with all the info on new cars readily available to everone (TRUECar, etc) dealers don't make nearly as much off of new cars as some might believe.

[awp317]

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@Anonymous wrote:

Maybe there's plenty of margin left with your typical auto shopper, but not for someone that goes in armed with plenty of product knowledge and experience.  For someone like this, I highly doubt the dealer is going to be willing to lose another $500-$1000+ by accepting credit card(s) as the form of payment.  Used cards are a different story as there's a ton of wiggle room there, but with all the info on new cars readily available to everone (TRUECar, etc) dealers don't make nearly as much off of new cars as some might believe.

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My last purchase was as follow 2016 silverado, sticker 56,280. Rebates 10k from GM, talked them down another 6k. Out the door price was 44,289.72. and even then im sure the dealer made 1000 bucks on the deal plus a 400 dollar comission to the sales rep.  Walked back to the finance office and said heres my card. She said "we cant accept that they charge us lots of fees", and again I just said "ok I will go to another dealer then" and not even out the door before they stopped me. 

Second deal was a lease. put 50k down, this was an over the phone purchase from and out of state dealer and she flat out asked what card I would be putting that on.

AS someone who used to sell mercedes  to have some walking around money through college, Im pretty confident that I go in "armed with plently of product knowlege and experience" Unless its a left over, dealer demo, or cold product a dealer is never losing money, no matter what they tell you about "invoice" and rebates blah blah blah. But I do agree with you that sources like true car or usaa auto buying, etc are wonderful as everybody walks in saying "I want this price" and 99% of the time, they could have negotiated it lower than the "true car" price. However at the time true car dint really exist, most of the time i dealt with costco auto buying. 

[Anonymous]

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@UncleB wrote:

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@Anonymous wrote:

Yarp. That's right, totally makes sense from the point of view of dealer and property owner.

But my main curiosity was the banks. Let's say I buy an 8000 dollar painting with my SPG Amex using full limit, an alienware for $6000 with my Chase Slate using full limit so on and so forth. Would this type of spending in one month alert these separate banks and eventually stop me using my legal and legitimate limits. Is there such a thing like being blocked before one could use all her CL limits?

I just don't want to be turned down..

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That's a different question... now you're asking will your lenders mind if you actually 'use' your credit line. 

The answer is that in theory, you should be fine.  Now in reality, whenever I make a purchase that is outside my usual pattern I call the issuer to let them know what's going on to prevent a decline at the merchant, but it's not really required.  Capital One in particular advised me to simply use my card and call them if there's a problem (so far there never has been). 

If you're wondering if your lenders would be concerned about you doing a 'bust out', that's a possibility, but they won't have the information about your increased balances with your other lenders until your reports cycle, which could take a few weeks.  By that time you would likely have a problem, since maxing out all your cards simultaneously will definitely set off flags, as it should.

I'm actually curious why you're concerned about this... is this 'academic', or do you have a specific need?

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I agree with UncleB...It could throw up flags of "bust out". One major sign is that the buster usually has a great credit file and always pays on time with very low or no UTI. Usually the buster has a relatively new file with many new accounts but behaves completely normal and then BAM they run up all theirs lines very quickly and never pay.

Sometimes before the bust out they will run up their credit lines and pay in full a few months before the bust.

[Anonymous]

awp317,

There are exceptions to ever rule.  But for every example that mirrors the one you have, there are 10+ examples of dealerships telling people that can only put a certain amount on a card, which is usually a small percentage of the entire purchase.

[longtimelurker]

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@Anonymous wrote:

awp317,

There are exceptions to ever rule.  But for every example that mirrors the one you have, there are 10+ examples of dealerships telling people that can only put a certain amount on a card, which is usually a small percentage of the entire purchase.

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Right, but I think awp317 is saying, if you then threaten to walk, things might change.   Sometimes, especially if you think (often wrongly!) you have been a master negotiator, you may not want to risk the deal, and that might be a mistake.

[awp317]

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@longtimelurker wrote:

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@Anonymous wrote:

awp317,

There are exceptions to ever rule.  But for every example that mirrors the one you have, there are 10+ examples of dealerships telling people that can only put a certain amount on a card, which is usually a small percentage of the entire purchase.

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Right, but I think awp317 is saying, if you then threaten to walk, things might change.   Sometimes, especially if you think (often wrongly!) you have been a master negotiator, you may not want to risk the deal, and that might be a mistake.

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I never worry about blowing a deal, if I do, start over at the next one. Im never so in love with a car that I have to buy it that minuite. My city has 3 or 4 new car dealers of every (mainstream) brand, all of them compete with each other quite often. This may not be true for everyone and its always a YMMV. But I have never had a dealer turn me away over a credit card, I buy a new vehicle every 6 months or so as I get bored with vehicles pretty quickly and as my company grows more work trucks are needed, so I go through this more than most would and build relationships with dealers in that in their mind it may be in their best interest to take the hit now as they know then I will come back to them in the future. 

[Anonymous]

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@Anonymous wrote:

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@UncleB wrote:

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@Anonymous wrote:

Yarp. That's right, totally makes sense from the point of view of dealer and property owner.

But my main curiosity was the banks. Let's say I buy an 8000 dollar painting with my SPG Amex using full limit, an alienware for $6000 with my Chase Slate using full limit so on and so forth. Would this type of spending in one month alert these separate banks and eventually stop me using my legal and legitimate limits. Is there such a thing like being blocked before one could use all her CL limits?

I just don't want to be turned down..

---

That's a different question... now you're asking will your lenders mind if you actually 'use' your credit line. 

The answer is that in theory, you should be fine.  Now in reality, whenever I make a purchase that is outside my usual pattern I call the issuer to let them know what's going on to prevent a decline at the merchant, but it's not really required.  Capital One in particular advised me to simply use my card and call them if there's a problem (so far there never has been). 

If you're wondering if your lenders would be concerned about you doing a 'bust out', that's a possibility, but they won't have the information about your increased balances with your other lenders until your reports cycle, which could take a few weeks.  By that time you would likely have a problem, since maxing out all your cards simultaneously will definitely set off flags, as it should.

I'm actually curious why you're concerned about this... is this 'academic', or do you have a specific need?

---

I agree with UncleB...It could throw up flags of "bust out". One major sign is that the buster usually has a great credit file and always pays on time with very low or no UTI. Usually the buster has a relatively new file with many new accounts but behaves completely normal and then BAM they run up all theirs lines very quickly and never pay.

Sometimes before the bust out they will run up their credit lines and pay in full a few months before the bust.

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Good point Donny. However, you have told two scenarios.

One is with new file, good credit, pays on time, low utilization.

The other is, they run up their credit for a few months, pay full, and then run.

Aren't these, especially the second one, somewhat normal? I mean these actually happen, even without the bust out.

then the question is, how do banks tell between an actual spending change and a potential bust out?

do they have such a flagging system? What if they are wrong about the potential? How can a card user convince them they are wrong?

Watching too many heist movies lately :-)