Just imagine the interest payments that will pile up when you pay your mortgage with a credit card. Interest on top of interest. Amex says they’ve had so much success in getting people to charge condominium down payments that they now want you to charge everything. Imagine the excitement, you can get rebates too. Yes sirree, charge $6500 and you get 1.5% back. Wow, that’s a whopping $97.50. But wait, their web site says that after the intro period is over, that interest rates are anywhere from 12-19%. Paying 12% to get back 1.5% isn’t really advisable, I’m thinking.
Oh, they charge a one time fee of $395 for allowing you to charge your mortgage. That’s mighty generous of them.
And if you need that mortgage but have a low FICO score, no problem.
Just get yourself added as an authorized user on a credit card of someone who has excellent credit. Presto, your FICO score goes up. You can’t actually use the credit card though, while the person who rents out the card gets paid for doing so. Any number of weaseldick companies are popping up to service this scam. They make several hundred a month per card leased out, while the card owner makes $150 a month or so.
Fair Isaac Corp., developer of FICO, says they’ll be slamming the door on this loophole soon.
Whole new possibilities for debt emerge here. Pay the weaseldicks, say, $1500 a month to lease space on several credit cards (and charge the expense of course.) Use that to get a mortgage which you also charge. You’ll then be paying interest on the credit card to pay the mortgage, which of course also has interest charges, with $1500 a month on top of that to keep the illusion going.
Of course this is no more delusional than what D.C. is doing, funding expensive wars with money it doesn’t have by going hugely into debt. Debt castles made of sand.