Why do people get credit cards loan?

[CristianOff]

I don't know if you call that 'out of normal' but I am not a person who gets credit cards loans, even if my allowance is high.
Why are so many people concerned with getting credit cards loans and increasing their maximum allowance?
The maximum I have got with a credit card in once was £500 which I paid the next month. Even before paying with
the credit card, I would have only paid if I had enough money on my main account to pay the balance.

Do you run 'credit card schemes' where you get a £5k loan with a bank, move to another bank and get other £6k to
pay your previous loan, move to another bank and get other £10k to pay your previous loan, etc. ? 

[1715169630]

1715169630

[1715169630]

1715169630

[coins4commies]

Why not?  Its free money if you know how to work it.

1. Open a rewards card
2. Reach minimum spend to gain rewards (usually 500-1500 dollar value)
3. Open zero percent balance transfer card to payoff the minimum spend on the rewards card
4. slowly pay off zero percent balance card in 12-24 month 0% period.
5. watch your credit score, maximum credit limit, and reward offers go through the roof.

I haven't paid for an airport lounge or hotel room since i started churning credit cards nor have i run out of points or paid a cent in interest.

[ATMD]

Why not?  Its free money if you know how to work it.

1. Open a rewards card
2. Reach minimum spend to gain rewards (usually 500-1500 dollar value)
3. Open zero percent balance transfer card to payoff the minimum spend on the rewards card
4. slowly pay off zero percent balance card in 12-24 month 0% period.
5. watch your credit score, maximum credit limit, and reward offers go through the roof.

I haven't paid for an airport lounge or hotel room since i started churning credit cards nor have i run out of points or paid a cent in interest.

Intelligent use of the credit card 

Using credit cards do have an abundance of rewards in the form of benefits, perks, and discounts.

[BADecker]

When you have the credit card application in hand, before you sign it, does it have any value? No! You can't get a card until you sign it.

When you sign it, the application form becomes valuable so that you can get a card.

You have loaned the bank some paperwork of value. They have repaid the loan by sending the card that you can use. Get your value back by using the card. Then, if you don't want to use the card any longer, simply keep the money. After all, it is a loan repayment from the bank to you for the value that you gave them when you signed the app.

[CristianOff]

When you have the credit card application in hand, before you sign it, does it have any value? No! You can't get a card until you sign it.

When you sign it, the application form becomes valuable so that you can get a card.

You have loaned the bank some paperwork of value. They have repaid the loan by sending the card that you can use. Get your value back by using the card. Then, if you don't want to use the card any longer, simply keep the money. After all, it is a loan repayment from the bank to you for the value that you gave them when you signed the app.

Are you insinuating that you can keep the money without repaying it back?
People went to jail last time I checked

So far, I don't see any reason why I would get a credit card loan. For me, I'm asking myself, would a rich person ever use a credit card if they
were a poor person? If yes, how would that benefit them?
Getting a credit card loan to satisfy their own needs: not likely
Getting a credit card loan to invest in their business: not likely (why would they take so much risk when they can convince a VC or angel investor)
Getting a credit card loan to invest in stocks, bonds, shares, forex, etc.: not likely. this sounds like the most stupid option as well. If you believe you should use credit card loan to invest in speculations, you can already say bye to your money.

My conclusion is that credit cards have been created by bankers to target middle class. They try to convince you it's a good idea by having the chance to
get a loan anytime you want, when it clearly doesn't benefit you and creates a feeling of a little more 'wealthy man/woman'. 

[BADecker]

When you have the credit card application in hand, before you sign it, does it have any value? No! You can't get a card until you sign it.

When you sign it, the application form becomes valuable so that you can get a card.

You have loaned the bank some paperwork of value. They have repaid the loan by sending the card that you can use. Get your value back by using the card. Then, if you don't want to use the card any longer, simply keep the money. After all, it is a loan repayment from the bank to you for the value that you gave them when you signed the app.

Are you insinuating that you can keep the money without repaying it back?
People went to jail last time I checked
 

I guess I went too fast.

No, you can't keep the money without paying it back. But you did pay it back when you sent in the application. You were the one loaning the money to them through your application.

They don't give you money trusting that you will pay them back. They borrow your money from you, and pay it back with theirs. The money they borrow from you is the application form with your signature on it. They pay it back by sending you the credit card. You simply transfer the card to cash at the ATM, or product at the store.

Most people have it backwards, regarding who is loaning what to whom when.

If you don't want the card cancelled, you need to make payments. If you want to cancel the card, simply keep the money that they traded to you for the app.

You might wind up going to court, but you don't have to. And if you understand how they are trying to mess with you for no cause, you will win. Google "Tom Schauf, bank loans." Look here https://rodscontracts.com/docs/TomSchauf/001AmericasHopeHowToCancelBankLoans.pdf and here http://discharge-debt.com/id135.htm. There are many more.

The greatest understanding in all this is, bank and lending institution loans are not loans. Rather, they are methods for creating new money, that you and the bank do together.

[CristianOff]

I guess I went too fast.

No, you can't keep the money without paying it back. But you did pay it back when you sent in the application. You were the one loaning the money to them through your application.

They don't give you money trusting that you will pay them back. They borrow your money from you, and pay it back with theirs. The money they borrow from you is the application form with your signature on it. They pay it back by sending you the credit card. You simply transfer the card to cash at the ATM, or product at the store.

Most people have it backwards, regarding who is loaning what to whom when.

If you don't want the card cancelled, you need to make payments. If you want to cancel the card, simply keep the money that they traded to you for the app.

You might wind up going to court, but you don't have to. And if you understand how they are trying to mess with you for no cause, you will win. Google "Tom Schauf, bank loans." Look here https://rodscontracts.com/docs/TomSchauf/001AmericasHopeHowToCancelBankLoans.pdf and here http://discharge-debt.com/id135.htm. There are many more.

The greatest understanding in all this is, bank and lending institution loans are not loans. Rather, they are methods for creating new money, that you and the bank do together.

Ok, thanks for the pdf and the discharge-debt where it explains it very well. I don't understand how debts are good for a country since it could lead
to an economic collapse. We do not take in consideration loaning trillions of dollars to students who we are expected to pay back.
I found out something interesting. It looks like putting a country in debts is better than having the country with 0 debts. I found this:

A nation's debt grows when its revenues are less than its expenditures; to be able to fill the gap, it has to borrow the money. It can reduce the amount it borrows in one of two ways. The country can either raise revenues or decrease its expenditures.

My vision about debts is still blurred. I am not able to envision the advantages of getting a small loan of $10k, and pay back $10.8k
Do you guys use it for shopping? Open businesses? Or do you hope to increase your loan such that you can take a huge amount out and
successfully multiply the value?
I don't understand how this enables me to benefit on the long term when all it happens is the bank taking more money from me. I borrow $10k and, in
most cases your net worth is $800 down because you have debts. I understand it helps the nation, by why would an individual get into debts?


Let's take a middle class example/scenario.
You earn $1.8k/month or $21.6k/year
You can get $8k from your credit card and you repay back 8% or, let's just assume it's your first year and pay 0% interest.
You've got $8k you repay $8k.

Why did you get $8k from your credit card? Do you use it to make yourself feel richer when your year income is low?
Do I have to remind you that, if you earn $29k this year (salary + loan), in the following 12 months you will earn only
$13k (salary - loan)?
Makes no sense, or I'm too stupid to see the benefits. Enlighten me by showing me the advantages

[BADecker]

I guess I went too fast.

No, you can't keep the money without paying it back. But you did pay it back when you sent in the application. You were the one loaning the money to them through your application.

They don't give you money trusting that you will pay them back. They borrow your money from you, and pay it back with theirs. The money they borrow from you is the application form with your signature on it. They pay it back by sending you the credit card. You simply transfer the card to cash at the ATM, or product at the store.

Most people have it backwards, regarding who is loaning what to whom when.

If you don't want the card cancelled, you need to make payments. If you want to cancel the card, simply keep the money that they traded to you for the app.

You might wind up going to court, but you don't have to. And if you understand how they are trying to mess with you for no cause, you will win. Google "Tom Schauf, bank loans." Look here https://rodscontracts.com/docs/TomSchauf/001AmericasHopeHowToCancelBankLoans.pdf and here http://discharge-debt.com/id135.htm. There are many more.

The greatest understanding in all this is, bank and lending institution loans are not loans. Rather, they are methods for creating new money, that you and the bank do together.

Ok, thanks for the pdf and the discharge-debt where it explains it very well. I don't understand how debts are good for a country since it could lead
to an economic collapse. We do not take in consideration loaning trillions of dollars to students who we are expected to pay back.
I found out something interesting. It looks like putting a country in debts is better than having the country with 0 debts. I found this:

A nation's debt grows when its revenues are less than its expenditures; to be able to fill the gap, it has to borrow the money. It can reduce the amount it borrows in one of two ways. The country can either raise revenues or decrease its expenditures.

Except that you and most other people are wrong about debt... at least debt to the banking system. As I showed, there is little to no debt. It's a creation of new money, not a loan/debt.

When a person and a bank create new money, by the person loaning his private money (the signed loan app) to the bank, and then the bank paying the loan back with public money (cash), why should the person give money to the bank over months and years? He had no debt to the bank.

The deception that the bank uses to make the person think that he had debt, eliminates anything that the person owes the bank, anyway. It's called fraud. Fraud destroys the value of the contract. It's as though there were no loan contract... besides the fact that the loaning was made the other way, where the bank borrowed from the person.

There is no debt. There is no national debt. There IS a Ponzi scheme in place, upheld by the banks and the government. How? All the money that was ever "repaid" on the bank loans was paid by mistake and misunderstanding. There was no loan that needed repayment. The banks are getting rich in the Ponzi.

[Obiwankenodium]

No fancy reward schemes here, but i do buy products with my creditcard because of the free 180 days insurance i get when i buy a product with my creditcard.

[LUCKMCFLY]

I don't know if you call that 'out of normal' but I am not a person who gets credit cards loans, even if my allowance is high.
Why are so many people concerned with getting credit cards loans and increasing their maximum allowance?
The maximum I have got with a credit card in once was £500 which I paid the next month. Even before paying with
the credit card, I would have only paid if I had enough money on my main account to pay the balance.

Do you run 'credit card schemes' where you get a £5k loan with a bank, move to another bank and get other £6k to
pay your previous loan, move to another bank and get other £10k to pay your previous loan, etc. ? 

Yes, it is very fashionable, in fact in my country a lot is done, and the maximum is always asked, for the simple reason that when paying is very easy, because the economy is very uncontrolled and inflation ends in less than a week with the value that money has, that is why if a loan is made to the card today, today is worth enough money, but in 1 month when you touch the first installment to pay it is very easy to pay until The total of the amount that was requested, the strategy here is to borrow in the local currency, is the best business, because the ease of payment is incredible. In this case, the loans on the cards are very favorable.

[zhekinsp]

When you got a credit card then you wills pend some money even when it is not needed which is the idea behind why credit cards were created,so one who are smart and wants to save money then they will ignore getting credit cards.

[blockman]

Banks earn a lot with credit card and loan fees and interests.

As much as possible I'm avoiding to take loans and I promised myself not to take credit card. People take credit cards because of its convenience but I don't like the fees, I'm avoiding that kind of obligation.

[LUCKMCFLY]

When you got a credit card then you wills pend some money even when it is not needed which is the idea behind why credit cards were created,so one who are smart and wants to save money then they will ignore getting credit cards.

You are very right, although you can take into account in having one just in case an emergency happens, where you have to solve with money and if you do not have it, because the credit card is a great option, you may not ask for money, but if for a possible financing before an unexpected act.

[blockman]

You are very right, although you can take into account in having one just in case an emergency happens, where you have to solve with money and if you do not have it, because the credit card is a great option, you may not ask for money, but if for a possible financing before an unexpected act.

Credit card loans isn't for everyone.

This is the very use of credit cards, you don't have to use cash when you are in need and you don't have to ask someone if you are in dire need. But if used wrongly, you're likely to suffer and be in debt if you not used wisely.

[TedKL]

I had no such experience. I think it’s not a good idea. This is a debt loop that can last for the rest of your life. When you take out a loan, you always need to calculate your strengths, whether you can repay it. It's like with a casino before playing it is best to read reviews #1 casino website reviews by Play Casino™ and ratings so as not to be mistaken.

[viceking1]

Lack of financial ignorance. Low impulse control. Young people being taken advantage of. It's actually a clever scam industry but legally they're allowed to do it. That's why bitcoin is best because it evens the playing field for everyone.

[Ucy]

OP last paragraph is pretty interesting. Do people pay off their loans in that way?
I guess banks look at customer's credit worthiness or something before granting their loans request.
Taking out huge loans without a sure way of paying back is pretty scary thing to even think of.
I've never really collected a loan (bank loan I mean) in my life except from friends or family. I would have to be 100% sure I can pay back a loan on time before requesting for it

[spadormie]

It's obvious, benefits. Because of some benefits people can get out of credit card loan they are enticed to get one. Well, the obvious benefit of it is you can get some things you wanted with just a card. You don't need money to bring. Remember, some of these cards could be used outside the country.

[oneblagobl]

This procedure allows banks to earn a lot of money

[carina228]

This procedure allows banks to earn a lot of money