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The Dark Side Of Earning Credit Card Points
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amother
Lime


 

Post Tue, Mar 05 2019, 4:12 pm
zaq wrote:
Scratching my head here. Why on EARTH would anyone let someone else use his or her credit card (barring something like a parent making a child away in school an authorized user in lieu of sending him checks, or assigning someone to shop on one’s behalf)? Why would anyone X believe that a normal person Y would, out of the sheer goodness of Y’s heart, let X collect credit card points for purchases Y made?


We actually have a friend who owns a store and truly will use other people's credit cards out of the sheer goodness of his heart. He doesn't seek out people to use their cards and he definitely enjoys the perks of racking up tons of points on his own cards. But if someone asks him to use their card he doesn't mind. He's a Baal chesed in many other ways.

FTR dh and I have a very strict policy of not swiping for other people, period. So I've never actually taken advantage, but I know others who have.
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FranticFrummie




 
 
    
 

Post Tue, Mar 05 2019, 4:22 pm
My final take on this isn't "don't ever do business with anybody", but rather "make sure you can afford to take a loss if something unforeseen happens."

IMHO that was the whole point of the article.
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amother
Babyblue


 

Post Tue, Mar 05 2019, 4:41 pm
amother wrote:
We actually have a friend who owns a store and truly will use other people's credit cards out of the sheer goodness of his heart. He doesn't seek out people to use their cards and he definitely enjoys the perks of racking up tons of points on his own cards. But if someone asks him to use their card he doesn't mind. He's a Baal chesed in many other ways.

FTR dh and I have a very strict policy of not swiping for other people, period. So I've never actually taken advantage, but I know others who have.

Sorry but I'm very skeptical that it does is out of a chessed or out of the kindness of his heart. It's more likely that he cannot get approved for a business loan or credit cards at is there for using other people's credit cards.
I read through all the pages on Dan's deals forums thread about this, and it's so sad. Ppl lost over 250k
https://forums.dansdeals.com/I......2370
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amother
Mistyrose


 

Post Tue, Mar 05 2019, 5:59 pm
.
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amother
Lime


 

Post Tue, Mar 05 2019, 6:06 pm
amother wrote:
Sorry but I'm very skeptical that it does is out of a chessed or out of the kindness of his heart. It's more likely that he cannot get approved for a business loan or credit cards at is there for using other people's credit cards.
I read through all the pages on Dan's deals forums thread about this, and it's so sad. Ppl lost over 250k
https://forums.dansdeals.com/I......2370


You can be skeptical, but I know him personally, so I'm not. He has absolutely no problem putting all his business expenses onto his own business credit card, and that's exactly what he does 99% of the time. BH he's been running a successful business for many years independently, with no investors. Every once in a while someone is trying to meet a spending threshold and needs to put a few thousand on their card quickly. If they ask him, he does them a favor and puts spending on their card.

I'm not saying this is how all those people got scammed. I'm responding to a post expressing that no one on their right mind would do this as a favor. Well I know one person who does.
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Amarante




 
 
    
 

Post Tue, Mar 05 2019, 6:21 pm
amother wrote:
You can be skeptical, but I know him personally, so I'm not. He has absolutely no problem putting all his business expenses onto his own business credit card, and that's exactly what he does 99% of the time. BH he's been running a successful business for many years independently, with no investors. Every once in a while someone is trying to meet a spending threshold and needs to put a few thousand on their card quickly. If they ask him, he does them a favor and puts spending on their card.

I'm not saying this is how all those people got scammed. I'm responding to a post expressing that no one on their right mind would do this as a favor. Well I know one person who does.


It seems that the critical difference is your friend is not soliciting people to front him money but occasionally people approach him and he is willing to use their credit cards to help them but he has no financial reason to do so and actually is helping the, by letting them accrue points he would otherwise get.

This is entirely different than the scams in which people are inveigled into letting others use their credit cards. The scammers need to dupe people into lending them money because they don’t have the ability to use their own credit history or they are scammers front the start. If a person lacks the ability to get credit on their own, it is risky to let them use their credit and there are out and out fraudsters who have no intention to do anything but take the money and run.

I also read that thread and posts were not willing to let people in on the secret. Evidently there are people who do this for a living. How do they make money. Do they broker loans for third parties? I
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imasoftov




 
 
    
 

Post Wed, Mar 06 2019, 3:51 am
amother wrote:
My husband is a victim of one of them. He did his due research. There is a millionaire who was dealing with this man after having his accountant personally look through all of his books. Don't assume the victims are stupid, naive or looking for a quick buck.

I think it might be informative to find out what your husband's research consisted of, perhaps it could save others from similar mistakes. Same goes for the accountant although you probably have better access to your husband than to some third party's accountant.
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southernbubby




 
 
    
 

Post Wed, Mar 06 2019, 4:15 am
Amarante wrote:
It seems that the critical difference is your friend is not soliciting people to front him money but occasionally people approach him and he is willing to use their credit cards to help them but he has no financial reason to do so and actually is helping the, by letting them accrue points he would otherwise get.

This is entirely different than the scams in which people are inveigled into letting others use their credit cards. The scammers need to dupe people into lending them money because they don’t have the ability to use their own credit history or they are scammers front the start. If a person lacks the ability to get credit on their own, it is risky to let them use their credit and there are out and out fraudsters who have no intention to do anything but take the money and run.

I also read that thread and posts were not willing to let people in on the secret. Evidently there are people who do this for a living. How do they make money. Do they broker loans for third parties? I


Some cards give cash back. I have gotten a lot of stuff free on Amazon from my Discover card points.
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Amarante




 
 
    
 

Post Wed, Mar 06 2019, 6:39 am
southernbubby wrote:
Some cards give cash back. I have gotten a lot of stuff free on Amazon from my Discover card points.


I understand that the person whose card is being used is doing it for points.

However, on the dansdeal forum thread, there was a lot of discussion about the amount of money being made by those were were soliciting credit cards of others.

There was even a flyer that was shown which soliciting people claiming that a shul could get $100,000 and individuals $5000.

When people on that thread asked how money was being made by the person soliciting, people kept telling him that no one would say on an open forum and alluding to "authorities" finding out.

Obviously these people who were soliciting the cards were making money in some way because it seemed strange that there would be so many with flyers and ALSO because if it was simply that they wanted to use others line of credit because they had cash flow problems, why the secrecy on the forum to state the reason.
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southernbubby




 
 
    
 

Post Wed, Mar 06 2019, 7:24 am
Amarante wrote:
I understand that the person whose card is being used is doing it for points.

However, on the dansdeal forum thread, there was a lot of discussion about the amount of money being made by those were were soliciting credit cards of others.

There was even a flyer that was shown which soliciting people claiming that a shul could get $100,000 and individuals $5000.

When people on that thread asked how money was being made by the person soliciting, people kept telling him that no one would say on an open forum and alluding to "authorities" finding out.

Obviously these people who were soliciting the cards were making money in some way because it seemed strange that there would be so many with flyers and ALSO because if it was simply that they wanted to use others line of credit because they had cash flow problems, why the secrecy on the forum to state the reason.


Smells like a scam
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naturalmom5




 
 
    
 

Post Wed, Mar 06 2019, 8:03 am
FranticFrummie wrote:
I don't know what's worse, people who think they can get easy money for nothing, or the people who set up the scams in the first place.

It's disgusting that frum yidden would get involved in fraud, cheating, lying, taking advantage, and generally breaking the law.


Desperation causes you to do all kinds of shady stuff
Anything beats a normal education and a normal job
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MalkyG




 
 
    
 

Post Wed, Mar 06 2019, 11:49 am
Amarante wrote:
People say these things because they are true - of course, you can win the lottery but the odds always favor the casino. So in general, if something seems financially too good to be true, walk away from it because a fool and his money are soon parted.

People use points by charging their OWN expenses on their credit cards in an amount they can pay back. Smart people don't allow other people to use their credit cards to accumulate points relying on another person to pay off the credit charges. Would you loan a person that amount of money - if not, you shouldn't be letting them use a credit card.

I think of threads like this as PSA's - I followed the original link and skimmed some of the comments. So far as I know dansdeal is not a Frum specific site and yet a disproportionate number of the people who commented and had been burned on these kinds of transactions were obviously Frum Jews.

ETA - When I first posted, I didn't realize dansdeal was a Frum site because I had read about it on the Mr. Moustache website which isn't Frum and no mention was made of that. It's not something that I studied about because the idea of going through complex measures to accumulate points is not something I ever wanted to do - all my credit cards are payable on the same day of the month so I don't have to keep track of separate pay dates - otherwise I would be sure to mess up due dates.


I agree with you 100% that you should never let anyone else use your credit cards. EVER!

Regarding statements like "There's no such thing as easy money" and "If its too good to be true, it probably is", I say take it with a grain of salt, because there are definitely exceptions to these rules.
There is easy money (or points) out there for the people that know what they're doing.
We all know people that get free vacations from opening credit cards, lets not confuse them with people that lend out their cards.
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Amarante




 
 
    
 

Post Wed, Mar 06 2019, 11:56 am
MalkyG wrote:
I agree with you 100% that you should never let anyone else use your credit cards. EVER!

Regarding statements like "There's no such thing as easy money" and "If its too good to be true, it probably is", I say take it with a grain of salt, because there are definitely exceptions to these rules.
There is easy money (or points) out there for the people that know what they're doing.
We all know people that get free vacations from opening credit cards, lets not confuse them with people that lend out their cards.


Opening up your own credit card and using it responsibly is not what I think of as going after "easy money".

I have opened credit cards to purchase items because I would get an immediate discount on items purchased that day. I never used those credit cards again after the initial purchase Cool

I charge everything on a credit card which gives me amazon money because it's not complicated to use it.

I don't buy anything just to accrue points nor do I charge discretionary items that I can't pay off in full because the usurious credit card rates effectively double or triple the actual cost of an item.
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MalkyG




 
 
    
 

Post Wed, Mar 06 2019, 12:10 pm
Amarante wrote:
Opening up your own credit card and using it responsibly is not what I think of as going after "easy money".

I have opened credit cards to purchase items because I would get an immediate discount on items purchased that day. I never used those credit cards again after the initial purchase Cool

I charge everything on a credit card which gives me amazon money because it's not complicated to use it.

I don't buy anything just to accrue points nor do I charge discretionary items that I can't pay off in full because the usurious credit card rates effectively double or triple the actual cost of an item.


Good for you!
That's why I think the title of this post is misleading, there's no dark side to earning credit card miles. If someone were to tell me I can fly with my husband to florida by just opening a credit card, It sounds too good to be true, but it isn't.
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amother
Lawngreen


 

Post Wed, Mar 06 2019, 12:13 pm
MalkyG wrote:
I agree with you 100% that you should never let anyone else use your credit cards. EVER!

Regarding statements like "There's no such thing as easy money" and "If its too good to be true, it probably is", I say take it with a grain of salt, because there are definitely exceptions to these rules.
There is easy money (or points) out there for the people that know what they're doing.
We all know people that get free vacations from opening credit cards, lets not confuse them with people that lend out their cards.


If its an exception to the rule, why take the advice with a grain of salt? The advice is very important so people will realize the need to do their due diligence.

If they ignore this advice, they're much more likely to be burned than come out ahead.
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MalkyG




 
 
    
 

Post Wed, Mar 06 2019, 12:30 pm
amother wrote:
If its an exception to the rule, why take the advice with a grain of salt? The advice is very important so people will realize the need to do their due diligence.

If they ignore this advice, they're much more likely to be burned than come out ahead.

I'm saying take the advice with a grain of salt, AND USE YOUR OWN SEICHAL.
If someone were to tell me, if I give them my wedding money, within a year they can triple it, and I shouldn't tell anyone, I would run the other way!
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zaq




 
 
    
 

Post Wed, Mar 06 2019, 2:00 pm
naturalmom5 wrote:

Anything beats a normal education and a normal job


Stereotype much?
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Ruchel




 
 
    
 

Post Thu, Mar 07 2019, 8:58 am
People don't realize??
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zaq




 
 
    
 

Post Thu, Mar 07 2019, 1:59 pm
Ruchel wrote:
People don't realize??


1. Willing suspension of disbelief because it sounds so tempting .
2. Willing suspension of disbelief because the scammer is frum and/or familiar to them.
3. Willing suspension of disbelief because they heard about it from someone frum and familiar to them.
4. See #1.
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amother
Gray


 

Post Mon, Apr 29 2019, 6:24 pm
I was just scammed!!!!! I did this for a few years and made some$$$
however on my last swipe the merchent is not paying up any advise? how to go about this?
if this happened to you please post here your ideas what can be done
please no bashing or negative comments respond only if you can help out!!!
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