Posted by Chuck (AZ) on July 05, 2001 at 15:22:23:
Not to mention that the interest charged is compounded daily.
Don’t think so? Read the fine print.
$100,000 credit card - Posted by Tim_AZ
Posted by Tim_AZ on July 05, 2001 at 14:21:05:
Hello all,
I have received (yet another) credit card offer in the mail, but I didn’t throw this one away immediately. It is a business gold card (I forget which bank) with a credit line of up to $100,000. Anything you charge on this card must be a business expense, however. My question is, has anyone here used such a card for perhaps buying property quickly? I just had an idea that if I get this card, they might send me those access checks, and I could basically write a check for $100,000 to buy a property fast, then later on refinance at a lower rate once I acquire the property. Could it be this easy? Any thoughts are appreciated. Thanks.
Tim_AZ
Personally - Posted by IB (NJ)
Posted by IB (NJ) on July 06, 2001 at 16:53:07:
I only use these convenience checks when flipping or purchasing rehabs I’m going to sell in 2 months. Very convenient money and not that costly if it can make you $20k in a few weeks via flip.
I use the card itself when buying materials for my rehab. The card gets paid off when I sell the rehab at a retail price.
Re: $100,000 credit card - Posted by Bud Branstetter
Posted by Bud Branstetter on July 05, 2001 at 23:41:53:
If you apply for one of these cards send along a copy of your credit report with a letter. The letter should state that they only have permission to check credit to verify the information if they will give you the 100K line. If not they do not have permission to run a credit check.
I once used a credit card to get some additional cash for the afternoon session of the foreclosure auction. This was in the days of smaller flat fee for cash advances. It took an hour checking all sorts of ID’s and mothers name. I’m not sure it wads worth the hassle.
Re: $100,000 credit card - Posted by Rob
Posted by Rob on July 05, 2001 at 14:40:22:
Keep in mind you have only received an advertisement ? the credit card company is under no obligation to give you a credit card. After you fill out the application the credit card company will decide if they want to grant you a credit limit of $100,000 and they may deny your request for a card. Do not be surprised if the amount of credit granted is substantially less than $100,000. Also keep in mind that most credit cards charge a fee for using access checks (sometimes up to 5% on of the amount of the checks) and usually limit the amount that the checks can be written for. You need to read the fine print on the offer very closely (usually on the backside of the ad you received).
In my opinion it is risky to assume you will be able to refinance at a latter date. You may be stuck with the high interest rate and highly monthly payments for several months. The minimum payment on a credit card is often based on a percentage of the balance outstanding and will probably be much higher than a mortgage payment.
Rob