84

Your friend is basically doing "Credit Card Kiting". While not strictly illegal* (there are nuances), it's an expensive way to maintain debt. Your friend would be much better off taking the time to consolidate his debt at the lowest possible interest rate and come up with a repayment plan. $35k seems like a lot, but it's doable and his current plan has him ...


55

This is clearly an identity theft fraud in stages. To be specific, this is called one-dollar scam. Even OP didn't provide further information to the said entity, some data is already leaked into the scammer's hand (Here show some of the major data breaches). To fix it : Call the credit card issuer now by using the hotline number printed on your credit ...


50

Note: I am not a lawyer; this is not legal advice. TL;DR: As Hart CO says in their answer, there is probably nothing they can do once you've used the points, other than close your card and, potentially, any other accounts you have with them. The Offer & Benefit Terms for American Express's Gold Delta SkyMiles® Credit Card can be found at this link. ...


23

I don't know if it is explicitly illegal but it's certainly against Venmo's user agreement: Restricted Activities ... Provide yourself a cash advance from your credit card (or help others to do so); ... It's also worth noting that PayPal owns Venmo as of 2014 so if your buddy is doing something similar there then the same rules probably ...


19

It depends on how the ticket was purchased. If it is via a travel agent, the refund can be cash. Although most large travel agents reverse the original transaction to avoid fraud and save in card fees Domestic travel the scrutiny is not great and possibly get away... However it is not the scammer who is traveling. The scammer advertises a low fare ticket, ...


18

That $1 from a transaction that day or at most a few days old is not unusual. Many vendors do that as the first part of the transaction process. I see this from gas stations, grocery stores, and even from places I have bought tickets. The real amount of the charge will appear in a few days. It could also be a charge that will appear every month. They said ...


11

CC2 is costing you about $70 per month in interest. It seems a waste to keep that much cash in the bank when you're spending money on interest like this. First of all, I would make sure that I have my budget under control and am not creating any more debt. Then I would knock out CC2 today. That still leaves you about $4k for "emergencies", and there aren't ...


10

Sounds like a scam. Call your bank and ask to speak to their fraud department and see if they know anything about this. You have 2 issues here: 1- You were scammed $1 2- You were given a number to ring. This is as bad as clicking on a phony website and giving them all your information. Speak to your bank ASAP about that $1 too.


8

If you churn enough cards with AMEX they will blacklist you from ever getting another bonus with them again. I learned this the hard way. If I had realized this I would have kept my AMEX cards longer. I actively churn cards (free travel for 6+ years), but I am currently unable to get anymore AMEX bonuses. They are willing to give me their credit card, ...


8

Your plan misunderstands how interest is most likely calculated. It will be calculated on the average daily balance over the period (month). So if you start with $10k on the 1st, pay off $3k with your credit card on the 25th and "take out" the $3k to pay back the card (if you can even do that), your average daily balance will be (assuming a 30-day month): ...


7

If the service was provided, you must pay for it. A declined credit card is like a bounced check in this regard: the service provider is still owed payment. From the shop's point of view, they are probably out of luck. The amount is likely too small to bother to pursue in small claims court, and their only recourse is to dispute the chargeback with the ...


7

The rest has been answered, but I'll just throw out one alternative to this form of "Credit Card Kiting" for another that saves some fees: Collaborate with friends or family who like to pay in cash These are getting harder to find, but if you have some who do a significant amount of spending with cash, offer to put their purchases on your cards and accept ...


7

Remember there is a financial arrangement between the card and the airline mileage program. If you violate the terms and conditions with one there is an impact with the other. When you earn miles either by regular purchases, or through a bonus award, the credit card company purchases miles from the airline mileage program. When you use the card to purchase ...


6

Cards that include the last 4 of the PAN in the signature strip typically also include multi-colored watermark text or images under the numbers, which are printed in black. This acts as a fraud deterrent, since a scammer who melted down the embossed numbers and re-embossed new numbers would also have to change the number without destroying the watermark. ...


5

My question is, what can they do if I have already used the miles? All of the threat seems revolved around taking the bonus away, but what if it's already been spent? If you have used your reward points, then the reward clawback will leave you with a negative point balance. I don't believe they can charge you for a negative reward point balance, I see ...


4

I'd simply put this as a comment but don't have the rep... Just for the sake of completeness, I'd like to suggest an alternative: Simply ask AMEX if they will permanently waive the fee. I know this isn't an answer to your question, but often times they will do this... In fact, I have the Gold card myself with no annual fee. I had intended to cancel, but ...


4

This won't work. Note I'm assuming your student loan works like a line of credit (because the question wouldn't make sense otherwise). The deal breakers are: Most lenders will not allow you to make loan payments with a credit card. If they did, it would cost them at least a 2-3% fee per payment and they would very likely pass this fee on to you. Those ...


3

It technically violates credit card agreements. But if they catch you, they'll probably just cut you off from additional cash advances. They will probably do that anyway once the pattern establishes itself enough to be noticeable. You are in much worse trouble if it looks like you don't have a plan to pay the money back. In that case, your borrowing is ...


3

The biggest problem with this is that the net effective interest rate is going to be sky-high. If there is not an immediate end in sight (e.g. a client payment coming in), then this is going to get out of hand very fast. $35k right now can easily turn into $70k with interest and the Venmo fees, etc. Some strategies include: - Consolidate and pay ...


2

I have about $14k in a 403(b) from a previous job and $4400 in my 401k at my current job. I'd transfer the 403(b) balance to my 401(k). Reduce the 401(k) deposits to the level that's matched. If a loan doesn't keep you from getting matched deposits, borrow $9000*. Pay the cards in full. Make the regular 401(k) payments, but also replenish the savings with ...


2

The purpose of running the card through the reader is to get authorization from the network. If the transaction is later denied, then that is a dispute that the business owner has to make with the network. This has to be a very rare situation, or the business owner would never accept a credit card/debit card. The fee that is charged by the network is to ...


2

Utilization is a snapshot and has no memory. It does impact your credit score but your score only matters if you are shopping to get a loan or another credit card or line of credit, etc. If your credit limit is $2,000 and you spend $2,000 and it is reported that your credit is at 100%, that will have some impact on your score. If you then pay it off and ...


2

What you are doing is called "churning" and is reasonably common. To answer your question, American Express can charge you the amount you already redeemed to recover the sign-up bonus that you no longer qualify for. If you want to churn cards like this you have to carefully read the terms and conditions and then keep the card open long enough to not be ...


2

I eventually succeeded in withdrawing my money from Germany by using the credit card and would like to share my experience and knowledge I acquired in the process. Perhaps it will be useful for others. Maybe someone will need to withdraw money from a credit card after reaching its cash withdrawal limit and will find my post useful. My first attempt was to ...


2

Regardless what's the status of your credit card, you can also terminate your bank account. Your bank will transfer the remaining funds. If you live outside Europe (outside the SEPA zone to be precise), a handling fee might apply.


1

I still don't know if VISA allows cards without cash advance capabilities, but I found out that the "Service Code" portion of the magnetic strip data indicates restrictions on card use including ATM and Cash. https://github.com/samyk/magspoof/blob/master/README.md#security-issues


1

What happens with a credit card account in Germany after the card is blocked Nothing really. It is still there, just that card cannot be used to access it any more. In your case, the bank won't issue a new one (unlike the more common situation of a card being blocked because it's lost or stolen). Unless you settle the account manually (online) or ask the ...


1

In case you don't want to touch the 401k or the savings: I would get a 0% introductory APR credit card (like the one you mentioned, 21 months is a long time). Then I would use that credit card for all spending that you can put on a credit card. While making the biggest possible payments to credit card 2 until it's paid off. You say you have an emergency ...


1

It used to be that American Express in particular did not ask for your income, only a statement that it exceeded "x". In days gone by people were uncomfortable even giving the bank their birth date and it was considered rude to ask. Times have changed, but income is a "forward looking statement", and you should feel quite comfortable" rounding it down. ...


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