PSA: Don't swipe recklessly for others

[Miami]

Pidypn shvuyim is next

Amazing how he doesn't give his last name but when you scroll to the bottom of the page it says "created by" with the full name

[shnozolla]

It's not a measly 2%, depending on how fast they pay back, it can be anywhere from 12%-24%. That's a pretty hefty return.

Or 60% - 120% in the 5% category, that is a pretty good return, perhaps not good enough for the amount of risk involved! But still, enough to cause many (including myself) to bury my head in the sand.

[S209]

Or 60% - 120% in the 5% category, that is a pretty good return, perhaps not good enough for the amount of risk involved! But still, enough to cause many (including myself) to bury my head in the sand.

I'm pretty sure 120% is a good enough return to handle any risk in the world.

Still, you're fooling yourself if you think you're getting anywhere close to even 60% on a significant amount of money, short of signup bonuses, let alone 120%. There are caps on any major category spending.

[Dan]

Yet banks frequently lend at this rate on unsecured, non-recourse lines of credit (translation: credit cards) based on nothing but your credit score and stated income

Then why are they not lending these businesses (not buying groups) the capital they need?

[shnozolla]

Then why are they not lending these businesses (not buying groups) the capital they need?

The business is growing? Owners cards are already being used? Credit card companies don't give unlimited credit lines?
Some businesses are in transition mode and not yet structured to receive a line of credit from the bank. e.g. a business that started on amazon and branches out to become a traditional business.

[joey89]

Yet banks frequently lend at this rate on unsecured, non-recourse lines of credit (translation: credit cards) based on nothing but your credit score and stated income

They peg the apr on the assumption that x amount of loans will default, however most don’t default and the profit margin from the performing loans cover the loans that defaulted. In short they can spread their risk over many many customers. You are lending to one person so you have an inordinate amount of exposure. (Same idea as insurance paying out benefits which makes that specific policy a loss, however most policies our B”H never claimed).
There are actuaries that get paid very well to price the risk, odds of default, etc.

[sruly]

Not true, they have millions of dollars of funding from investors, they may run behind during busy times but they're primary purpose for using you is not for your cash flow.

agreed that their primary need is not your cash flow but they definitely do not have enough cash on hand to cover  everything.

[Dan]

The business is growing? Owners cards are already being used? Credit card companies don't give unlimited credit lines?
Some businesses are in transition mode and not yet structured to receive a line of credit from the bank. e.g. a business that started on amazon and branches out to become a traditional business.

That thought process is exactly how tens of millions of dollars vanished.

[mmgfarb]

agreed that their primary need is not your cash flow but they definitely do not have enough cash on hand to cover  everything.

And you know that this is definitely true, how exactly?

[S209]

And you know that this is definitely true, how exactly?

See comments by @Markmann20 in the Buying Group thread, although that was busy season as you said

[12HRS]

And you know that this is definitely true, how exactly?

they clearly do not.

[chayal101]

Yes. As of two months ago. Hence I cannot take advantage of any of the ink offers, etc.

Those are the banks that I settled with. They have me flagged in their system for eternity.

So I'm just curious... You're better off NOT settling and rather declaring bankruptcy or waiting 7 years (if no banks summons)?

[Redbull3]

The business is growing? Owners cards are already being used? Credit card companies don't give unlimited credit lines?
Some businesses are in transition mode and not yet structured to receive a line of credit from the bank. e.g. a business that started on amazon and branches out to become a traditional business.

Why don't banks give unlimited credit lines? Maybe because they have risk departments telling them not to? Do you?

[Menachem613]

agreed that their primary need is not your cash flow but they definitely do not have enough cash on hand to cover  everything.

He implied as much.

[Redbull3]

Like said earlier, when banks say no and you say yes, you are betting on being smarter than a bank.