Re: How to build credit
 

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The cost is the stigma / damage to your self-worth of admitting you need to do this. Now obviously the majority in this thread is not embarrassed by it. I find that sad but oh well.


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Henry,
I understand what you're saying, but I think the view you are taking is unhealthy. I know, your instinct is to immediately dismiss my comment, but I challenge you to challenge your own "beliefs" on money management. Ask yourself, why does owning multiple lines of credit and managing them prudently based on their interest rates do damage to your self worth? I think you may have issues that should be addressed by a professional.

Re: How to build credit
 

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You're already wayyy behind the curve if you're seriously 25 and w/o any credit history.

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Behind what curve? Like I said, I don't have any use for a cc other than getting free money.

Re: How to build credit
 

There is some stigma with sports betting but I didn't do it for $6k/year.

The stigma stems for the most part from the fact that someone would need to play this credit card shell game to make $6k/year. The return is central to why there is a stigma.

About 2-3 years ago I was going to get involved with a club. Luckily before anything was done one of the other partners mentioned doing something like this (not quite but similar in that it was a lot of shell game work for a few dollars). I walked away from the club. I'm not going to get involved with someone who is obviously that much in need of funds. So his $2-3k end up costing him the club he wanted. I'm not willing to have other people judging me and questioning me over $6k. I care too much about my reputation.

I'm going to stop posting because I think it is impossible to see each other's point. I think it stems from different perspectives on the utility value of $6k.

Re: How to build credit
 

Ron,

A lot of the advice in here is either wrong or not the best way to build credit. Check out fatwallet's finance forum and read up. You don't have to buy stuff on a credit card and pay it off in the same month to build credit, you just need the card (that might mean make a purchase every year so they don't cancel, but the whole idea of racking up 3k/month and paying it off increasing your credit is wrong.) Also, if you have no use for credit for the next 6-12 months, you might as well apply for plenty of credit cards at the same time. It's better to get your credit cards now to build the credit history/age. Getting 1 card now and another in a year means you wasted 6 months and then an inquiry will be affecting your credit score for another 6-12 months.

If you have a parent or relative that has ALWAYS paid their card on time and someone you can trust/they can trust you, then get them to add you as an Authorized User. Wait a month or two, then apply for all the "easy" cards on the same day. Try to get an AMEX card, they allow a credit line increase instantly online.

Re: How to build credit
 

Henry17,

you should probably just correspond with David Sklansky since your immense wealth seemingly makes the rest of pond scum for being interested in making $6k.

Also, for the love of God, stop saying $6k per year as if it is some salary for daily work.

If on every January 1 I showed up at your door and offered to hand you a cashier's check for $4k in exchange for counting from 1 to 10, would you be offended and turn it down as beneath you?

I mean, it's only $4k per year! The utility of that money is miniscule compared to your wealth!

Re: How to build credit
 

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The stigma stems for the most part from the fact that someone would need to play this credit card shell game to make $6k/year. The return is central to why there is a stigma.

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You do realize you can't make an act less sketchy by pointing out that the person / company you are taking advantage of also engages in questionable behaviour. If you rob a drug dealer you are still a thief.


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Unless you can rip them off for a handsome sum, I guess? You are not making much sense.

eastbay

Re: How to build credit
 

Henry,

Why would you disclose such information if you are afraid of people "judging" you? I don't remember any conversation I've had where someone has said "I have 20 credit cards making me $8,000 a year" and I certainly wouldn't tell anyone about an app-o-rama if I ever did one.

BTW, I think you are the only one that judges people over accepting free money. Something is seriously wrong with you if you can't see that everyone doesn't make 500k/yr like you.

Re: How to build credit
 

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Why would you disclose such information if you are afraid of people "judging" you? I don't remember any conversation I've had where someone has said "I have 20 credit cards making me $8,000 a year" and I certainly wouldn't tell anyone about an app-o-rama if I ever did one

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Well if you feel it should be kept secret that implies there is something shameful. I don't believe in doing something that if it became public I'd be embarrassed.

Also it is on your credit report. So anyone with access to that will know. If you rent the landlord will know. Your bank will probably know. Somebody who is a few degrees of separation away from your group will know.

Mail gets delivered to the wrong address. I've received my neighbour's credit card statement and bank statement by mistake. People snoop when they come over so you'd basically have to be careful to never leave anything out.

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It really has nothing to do with making $500k or any amount. Assuming the individual wanted minimal risk they would make a 5-6% return. To make the $6k they would need $100k in credit. To get that much credit I assume they have to have considerably above average incomes.

Re: How to build credit
 

A lot of attention has been paid to the possibility of 'free' money doing this app-o-rama. I can't really see how the money is free. If you have to spend time and energy to sign up, keep track of, pay off, etc. all these credit cards, thats not free.

Now, having said that, I will say that I know several high net worth investors that got started by investing money that they borrowed from credit cards. A good friend of mine did a similar thing to the app-o-rama and built about $200,000 in available credit for which he has to pay 4-6%.

He used some of that money to buy two fast food franchises. He used some more to buy some discounted notes. He used even more of that money to buy some real estate. Now he's rich, so I guess he got the last laugh.

I'm not really in a position to judge whether this is sketchy or unethical. I don't really care about those judgements. I think that this could be a great way to get started investing.

Re: How to build credit
 

You said you wee going to stop posting in this thread. So just stop. Please.