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How many of you bought a timeshare with a high interest credit card?

Fredflintstone

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Lately, I have been reading stories from many folks who would go to a “Owners Update” to get a trinket only to leave with a handful of Credit Cards maxed out at bank crushing interest rates to pay for a timeshare.

In other words, they leave the Update with signed paperwork and fleeced like a sheep.

From what I understand so far is having folks get instant credit through these cards equates to more commissions earned.

Has this ever happened to you?

Should this practice be outlawed?

(Yet another reason to buy resale and/or rent)


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klpca

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I've never bought anything with a high interest rate cc. Some people can't handle credit and shouldn't play that game. They lose every time.
 

Fredflintstone

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I've never bought anything with a high interest rate cc. Some people can't handle credit and shouldn't play that game. They lose every time.

Totally agree. Especially a multi thousand dollar timeshare. sheesh.


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easyrider

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I used a Visa card to pay for every one of mine. I guess it helps when the cost is low to nothing so I am able to pay the balance every month. I am happy to help some one out of their timeshare obligations when it helps me too.

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Fredflintstone

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I used a Visa card to pay for every one of mine. I guess it helps when the cost is low to nothing so I am able to pay the balance every month. I am happy to help some one out of their timeshare obligations when it helps me too.

Bill

Resale makes sense. Imagine doing it for a retail 20 k purchase...yikes.


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Grammarhero

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Lately, I have been reading stories from many folks who would go to a “Owners Update” to get a trinket only to leave with a handful of Credit Cards maxed out at bank crushing interest rates to pay for a timeshare.

In other words, they leave the Update with signed paperwork and fleeced like a sheep.

From what I understand so far is having folks get instant credit through these cards equates to more commissions earned.

Has this ever happened to you?

Should this practice be outlawed?

(Yet another reason to buy resale and/or rent)


Sent from my iPad using Tapatalk
I bought all my $1 TS with credit cards. Some had closing/transfer costs, some of which I also paid with credit cards. The 1.5 percent rewards helps.
 

MOXJO7282

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I bet this is a double digit percentage that do this, ie at least 10%. Some with the intention of moving it to a cheaper interest rate card or funding but I'm sure some that get stuck for one reason or another staying on the high rate card thereby paying an even more obscene total cost than just buying direct.

Even when i buy resale I insist on as much on my credit card as possible. They will usually agree to putting like $10k to make the sale and that nets me another 20k points so if you use the credit cards right and pay them off it is a great extra value.
 
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I've heard of this happening for a while now but I'm not sure what the sales tactic is, except it's gotta be a perk to the sales weasel. Perhaps, unlike what they did to me and promise that I could easily refinance at a lower rate, they're now showing potential buyers what the initial interest rate is buying direct, and then say but if you put it on this credit card, it'll be 3-5% lower or something like that...... Still shady as hell and wrong.
We luckily have very good credit and were able to get an unsecured personal loan at a 4.5% rate for our initial $20k purchase. But it still took a little bank shopping.
 

controller1

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For our developer purchases (prior to my discovering TUG) we would purchase by placing the down payment on our Amex which garnered bonus points for the purchase and take out a developer mortgage with a "same as cash" clause if paid in full within 180 days. We would then pay monthly using the same credit card receiving additional bonus points. Our interest payments would be refunded either by crediting the Amex or crediting against the next year's MF.

Our credit card is paid in full each month so we never incurred any net interest expense.
 
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For our developer purchases (prior to my discovering TUG) we would purchase by placing the down payment on our Amex which garnered bonus points for the purchase and take out a developer mortgage with a "same as cash" clause if paid in full within 180 days. We would then pay monthly using the same credit card receiving additional bonus points. Our interest payments would be refunded either by crediting the Amex or crediting against the next year's MF.

Our credit card is paid in full each month so we never incurred any net interest expense.
We had a $10k limit on our credit card then. Old card that the wife had had since she was 18, this was when she was 27 and never raised her credit limit upon increased credit score and marrying me. I got a Capital One card this spring for the bonus points with planned purchase of new carpet. I didn't ask for a high cap, but got a $30k credit limit! No wonder so many people have massive credit card debt.....
 

pianodinosaur

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I have purchased two timeshares on EBay with credit cards. The first cost $39.00 the second cost $1.00.
 

VacationForever

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We had a $10k limit on our credit card then. Old card that the wife had had since she was 18, this was when she was 27 and never raised her credit limit upon increased credit score and marrying me. I got a Capital One card this spring for the bonus points with planned purchase of new carpet. I didn't ask for a high cap, but got a $30k credit limit! No wonder so many people have massive credit card debt.....
I have more than $200K credit limit totalling from 5 cards. I am still baffled why any of the issuers thought I would want to use the cards that much.
 

klpca

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I have more than $200K credit limit totalling from 5 cards. I am still baffled why any of the issuers thought I would want to use the cards that much.
Right? It almost makes me nervous to have that much credit, just in case we were to get hacked. I know that it would be covered, but why do the cc companies want that much risk? I guess the risk is low. I canceled a card that we didn't use -ever- and of course my credit score dropped 5 points but at least it's one card that I don't have to check any more. Plus how can you churn if you don't cancel those cards at some point ;)
 

VacationForever

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Right? It almost makes me nervous to have that much credit, just in case we were to get hacked. I know that it would be covered, but why do the cc companies want that much risk? I guess the risk is low. I canceled a card that we didn't use -ever- and of course my credit score dropped 5 points but at least it's one card that I don't have to check any more. Plus how can you churn if you don't cancel those cards at some point ;)
I called this week to cancel my United Explorer Chase Visa cc because there was a $95 charge for cc membership fee and I don't use that card. The agent asked me if I wanted to transfer part of the credit limit to another Chase card. If I were the agent I would have gone "gulped" when looking at the amounts on my Chase Visa cards and not offer to transfer part of the credit limit. But then I guess they have to follow a script.

I gave my son a supplemental card with the lowest credit limit amongst my cards, for emergency use. Even then I am nervous that he loses the card or it gets compromised somehow. He has yet to use the credit card. Maybe I should ask the credit card company to lower the credit limit on that card.
 
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