Credit Cards Can Make You Rich!

I had a friend who called 0% interest cash advance credit cards "the last great pyramid scam in America." He'd use the cards to get a cash advance, put the cash advance in the bank or in bonds and take out another card to pay that card off. This guy must've had 20 or 30 cards working at one time! John Chow told a similar tale on his blog about how he did a similar scheme. What a country!

There was also the guy (I forget his name) who scammed the airlines out of millions of miles with his credit card. He'd go to AAA and charge tens of thousands of dollars in traveler's checks on his creit card (there is no surcharge on traveler's checks at AAA) which would earn him airline miles. When the bill came in, he'd cash the traveler's checks and pay up. He never paid interest because he paid in full every month and he accrued enough airline miles to travel the world for free with his wife and kids! His scam was so successful, the airlines closed the loophole he exploited.

These guys made credit cards work to their advantage. They obviously had discipline. Too many people get into trouble with their credit cards by spending more than they can afford. This screws up your credit rating. When I was in the mortgage business, we dealt with people with credit problems all the time. The challenge was to help folks with poor credit repair their credit so they could qualify for a home loan. There are many tricks and secrets to credit repair and many of them work, some better than others. There are also a lot of scammers in the credit repair business, so be careful when reviewing these programs.

The best thing to do is not need credit repair services, tricks or secrets at all. Pay your bills, stay within a budget and don't max out the plastic. With good credit you can qualifiy for 0% cash advance cards like my friend and actually make money off the credit card companies. Unfortunately, credit card companies send these offers out knowing 999 out of a thousand people won't be so clever and will end up paying them interest.

Be careful out there. Compare credit card offers here.

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