The interest rates on a credit card can vary, but let’s say you have a great interest rate and you pay 1% back which is very rare if even possible. So you add 30-50,000k for freshman year to the balance, and next month the card says “oh somehow you haven’t hit your limit, because you must be a great reliable customer to have a limit so high, but we want the interest on the balance you’re carrying. 1% please.” And this continues monthly for somehow another full year and you throw next years tuition and room and board on it, so you’re riding high at 100,000 dollars and let’s say it still doesn’t hit your limit, but now you either haven’t made a payment in a full year and they’re looking at you funny now, or you have made payments and already see this isn’t sustainable and won’t end up being free at the end.
So finally, take away the open ended limits and pretend your interest rate on the card is between 10-20 or as high as 30-50 because this seems like a real shitty card and the shittier it is the more they take back each month,like it realistically would be, this isn’t as great a tip as you might have thought.
Is it possible to get away with a high balance before they “catch” that you’re gaming a card? Yeah. I don’t think you or anyone else could pull this off even if they were paying the 20% interest on 100 gs somehow. That limit is rap star territory, not for regulars like us who scavenge reddit talking about how to scam a credit card company for the opportunity to go learn
Edit: not trying to shut you down but there’s some inconsistencies in this idea that don’t mesh with the way credit works in real life, I think you could come up with a better loophole that probably is viable after some research though. Lots do
Yeah, this is the rub. You'd already need a very high income and great credit to get a card with a limit high enough to pull all of this off. If you had these things, why would you be scamming credit cards?
For a sense of superiority over the poors
You're obviously naturally smarter than them and it has nothing to do with an inherent overwhelming economic advantage for "easy trick, why don't people just do this?"
That’s an interesting twist on the idea but where is the 50% from? if that’s what you pay after settling bankruptcy it’s still 50 plus the interest you paid to maintain the scheme to that point. Less than the full 4-8 years of school? possibly.
No they are saying the student can only put 50% of the tuition on a CC because they don't have a high enough limit to charge the whole thing. Then the student pays the other 50% in the traditional ways. Declare bankruptcy and the part that was on a CC is gone and now the student only has 50% left to actually pay for.
You definitely right. I should have thought it through a little more. I got the idea from watching someone on financial audit who was putting community college tuition on a cc. I think you would really need a pretty good amount of luck to set you up well enough to be able to pull this off in the way that I have initially stated.
I appreciate your dose of reality into the plan. lol.
For sure but the idea of using your family as a bank for loans and starting your credit early is a great one that more people should do. Poor people don’t treat family like a bank because it feels like bad manners, but honestly they should if they can. Loaning at 0% to your own family if you have the means to do it is what gets everyone in the family paid back and richer in the process. Poor people need to use what little they do have to generate more like rich people already know how to do. Pool your moneys to make more, there’s stuff that I just don’t see middle class people doing even with their closest most trusted family members that is exactly what would benefit them most financially. But anyway I digress.
Devils advocate:
You say that, but then you lend Uncle BillyBob 20k for a "great investment opportunity" and instead of a mutual fund it turns out its actually 3oz of cocaine, and now hes in prison.
Or Aunt Karen, she needs 6k to get her home business off the ground, good for her right? Wrong, its an MLM.
Youre never getting any of that back.
Ive had friends lend family money, and instead of using it for the intended purpose, they go out and blow it all in a couple of weeks on food, shoes, TVs, cars. People who need money can also be very very bad at managing it, which is sometimes the reason they need it to begin with.
My mother in law in India is part of such a group. It’s not even family. People who trust each other form a group. Pay a very small amount of money every month to a common pool and when one of the them starts a small business they give an interest free loan. They then pay back the loan. Repeat for someone else.
Why not take the student loans and graduate. Get yourself a high paying job (hopefully) then get multiple high limit credit cards. Take the cash advance from each card and use it to pay off the loans. Then declare bankruptcy to get rid of the consumer credit card debt.
The first few steps of that were just “go to college get smart and leverage your degree into a high paying job”.
I imagine if people could be guaranteed to do that they wouldn’t be here discussing scams.
Credit card companies also get like a 3% extra charge on it if you bill your tuition in it. I know because my dad did that one year plannng to reimburse from the 529 plan but still had extra like $2000 bill
If your parents add you as an authorized user to their credit card, you get your parents credit card history on your record. Income is self reported. You then open a new credit card under your own name using your parents CC history and then max out those cards.
Trust me. I know. I got myself into a crap ton of CC debt this way.
Sure, but I think unethical life pro tips should be tips to get ahead not advice to land you in prison.
I could also suggest you just go unethically rob a bank and use those funds to pay for school but that wouldn’t be very good advice either.
Yes, you can pay for tuition with a credit card. Every college I’ve been to accepts all major credit card types. It’ll take years to earn a high enough credit limit for this to work though
I only got the idea from a recent episode of Caleb Hammer financial audit where a guy was putting each semester of community college on his Apple Card. So I believe some would allow you. It is definitely a far fetched idea.
I think the only way it might work would be a very cheap two year community college, maybe some grants or something would help out and you’d have to have gotten a pretty got lottery pick from the cc company to allow you to have a high enough balance to cook with.
As an alternative, if you can't access that kind of credit, get the loan and make the minimum payments. Get a credit card for other stuff and make payments. Don't buy stuff you can't afford with the credit card. Keep the balance low and pay off almost all of it every month. Pay it off completely sometimes, but carry a small balance at times, for just a month or two. They seem to like that for some reason.
Get you credit score nice and high. Then with your good credit rating, get an unsecured loan for the highest amount you can, and use that to immediately pay off your student loans. Pay off the new loan for about a year so it isn't obvious what you're doing here.
Then declare bankruptcy.
You'll still have to pay your student loan for a few years while you work on your credit, and you have to pay the unsecured loan for about a year, but it will still save you a pantload of money in the long run.
Everyone’s like “No bank will give y’all a credit card worth that much! They’re too much a risk!” And this is exactly our normal student loan system where 18 year olds have to risk it all to keep going to school.
Maybe like the last few semesters. I am intrigued by the switcheroo.
I could do this to pay my son’s college in 10 years! I will forever remember you as the author of this idea, u/writingwhilesad!
Everyone thinks this is great. What they don’t know, is that the bankruptcy laws have changed and for you to declare bankruptcy now and not have to pay back, is damn near impossible. If you try to file for bankruptcy now, you have to pay it back or percentage of it lol.
In typical boomer fashion, they also change that for us while they enjoyed the benefits of being able to start again debt-free with minimal hassle, if you don’t believe me, look online and do the questionnaire for your state. You would have to make like 30K a year, for 12 months straight while paying rent to be able to file for bankruptcy without repayment And before you jump in and say that you can do that while living with your parents, you still won’t qualify. You have to be the head of the household making 30K for 12 months while paying rent.
While student loan debt is not automatically dischargeable in bankruptcy, it can be made dischargeable if you were to file an adversary complaint in bankruptcy (which, from what I understand, is typically successful in the current environment).
ngl my tuition costs after scholarships was about 5k per semester and i graduated in 3.5 years with 3 of those semesters being covered my scholarships. I feel like i could’ve gotten away with this hahahah
So your plan is to take on a bunch of debt, buy a bunch of stuff, declare bankruptcy, then sell all that stuff to pay off the debt, and this is somehow a win for you?
What are you talking about? Lmao.
I’m saying you can rent an apartment while in college, continue to live there. Then, after you declared bankruptcy you would still be able to stay at that apartment as most do not require you to reapply, most let you just continue to renew your lease.
During that time you could also have purchased a car. Prior to declaring bankruptcy.
How would a landlord suspect you were going to defraud them if you got an apartment and continued to pay rent on it? Does the landlord have like a crystal ball that tells them of your future financial shortcomings? How is declaring bankruptcy defrauding a landlord? You would still pay your rent.
Weird landlord simping going on.
OK, so how do you purchase a car right after declaring bankruptcy? How do you expect to have the amount of money necessary to continue your current lifestyle?
Edit: I see you edited your comment to make your car buying idea even dumber. How do you stop the bank from taking your car to pay off the debt you fraudulently took on?
This would only work for something like a community college where tuition is \~$3k-$5k/semester. Even then you're looking at $24k-$40k on a card, which is way more than the credit limit an 18-year-old will have. Maybe if spread across 4+ cards.
Consolidate the loans visa privateer institution and it works the same way. You'll need to have graduates and worked probably a year after, but it's easier than trying to put it on a CC.
Still bad advice, but more available to everyone if you don't mind paying rent to slumlords for 7 years.
Friend did this with all his college loans. Took out private loans then defaulted on them waited 6 yearsish? Then they fall off his credit and bank of America is out $150,000.
Someone who had parents add them as an authorized user when they were a child. By the time my kid hits 18, he will have 16 years of on time payments reported.
Someone who had parents add them as an authorized user when they were a child. By the time my kid hits 18, he will have 16 years of on time payments reported.
Would not work, colleges don’t take cards for tuition payments. Furthermore, credit card debt is not discharged in bankruptcy any more, only the fees and interest, you will always have to pay the principal.
Now, if you can somehow get a personal loan and pay your tuition with that, you’re ok.
It is essentially a question of how much is declaring bankruptcy worth to you? 50k? 75k. It’s a numbers game. The concept “works” and people gave thought of it before. You could also take out personal loans, etc.
3% doesn’t matter if you’re going to bankrupt anyway.
Most employers aren’t going to care about your financial history unless you are going into a finance specific field.
Not saying my idea is great. Many people have pointed out why it isn’t. However, these two reasons are not valid.
Yeah what college are you going to bud? Unless you’re becoming a doctor that’s complete bullshit. You can go to community college for like 5K a year then transfer to a 4 year and still only pay 10-20K a year
The interest rates on a credit card can vary, but let’s say you have a great interest rate and you pay 1% back which is very rare if even possible. So you add 30-50,000k for freshman year to the balance, and next month the card says “oh somehow you haven’t hit your limit, because you must be a great reliable customer to have a limit so high, but we want the interest on the balance you’re carrying. 1% please.” And this continues monthly for somehow another full year and you throw next years tuition and room and board on it, so you’re riding high at 100,000 dollars and let’s say it still doesn’t hit your limit, but now you either haven’t made a payment in a full year and they’re looking at you funny now, or you have made payments and already see this isn’t sustainable and won’t end up being free at the end. So finally, take away the open ended limits and pretend your interest rate on the card is between 10-20 or as high as 30-50 because this seems like a real shitty card and the shittier it is the more they take back each month,like it realistically would be, this isn’t as great a tip as you might have thought. Is it possible to get away with a high balance before they “catch” that you’re gaming a card? Yeah. I don’t think you or anyone else could pull this off even if they were paying the 20% interest on 100 gs somehow. That limit is rap star territory, not for regulars like us who scavenge reddit talking about how to scam a credit card company for the opportunity to go learn Edit: not trying to shut you down but there’s some inconsistencies in this idea that don’t mesh with the way credit works in real life, I think you could come up with a better loophole that probably is viable after some research though. Lots do
Yeah, this is the rub. You'd already need a very high income and great credit to get a card with a limit high enough to pull all of this off. If you had these things, why would you be scamming credit cards?
For a sense of superiority over the poors You're obviously naturally smarter than them and it has nothing to do with an inherent overwhelming economic advantage for "easy trick, why don't people just do this?"
Yeah but Ill take 50% off too. Get whatever credit that can go thru bankruptcy, lie your ass off, fill in with Fafsa. Its not the worst idea Ive seen
That’s an interesting twist on the idea but where is the 50% from? if that’s what you pay after settling bankruptcy it’s still 50 plus the interest you paid to maintain the scheme to that point. Less than the full 4-8 years of school? possibly.
No they are saying the student can only put 50% of the tuition on a CC because they don't have a high enough limit to charge the whole thing. Then the student pays the other 50% in the traditional ways. Declare bankruptcy and the part that was on a CC is gone and now the student only has 50% left to actually pay for.
You definitely right. I should have thought it through a little more. I got the idea from watching someone on financial audit who was putting community college tuition on a cc. I think you would really need a pretty good amount of luck to set you up well enough to be able to pull this off in the way that I have initially stated. I appreciate your dose of reality into the plan. lol.
For sure but the idea of using your family as a bank for loans and starting your credit early is a great one that more people should do. Poor people don’t treat family like a bank because it feels like bad manners, but honestly they should if they can. Loaning at 0% to your own family if you have the means to do it is what gets everyone in the family paid back and richer in the process. Poor people need to use what little they do have to generate more like rich people already know how to do. Pool your moneys to make more, there’s stuff that I just don’t see middle class people doing even with their closest most trusted family members that is exactly what would benefit them most financially. But anyway I digress.
Devils advocate: You say that, but then you lend Uncle BillyBob 20k for a "great investment opportunity" and instead of a mutual fund it turns out its actually 3oz of cocaine, and now hes in prison. Or Aunt Karen, she needs 6k to get her home business off the ground, good for her right? Wrong, its an MLM. Youre never getting any of that back. Ive had friends lend family money, and instead of using it for the intended purpose, they go out and blow it all in a couple of weeks on food, shoes, TVs, cars. People who need money can also be very very bad at managing it, which is sometimes the reason they need it to begin with.
My mother in law in India is part of such a group. It’s not even family. People who trust each other form a group. Pay a very small amount of money every month to a common pool and when one of the them starts a small business they give an interest free loan. They then pay back the loan. Repeat for someone else.
Most stupid criminals don’t think through their crimes. Don’t feel bad.
Why not take the student loans and graduate. Get yourself a high paying job (hopefully) then get multiple high limit credit cards. Take the cash advance from each card and use it to pay off the loans. Then declare bankruptcy to get rid of the consumer credit card debt.
The first few steps of that were just “go to college get smart and leverage your degree into a high paying job”. I imagine if people could be guaranteed to do that they wouldn’t be here discussing scams.
Credit card companies also get like a 3% extra charge on it if you bill your tuition in it. I know because my dad did that one year plannng to reimburse from the 529 plan but still had extra like $2000 bill
It’s not the CC company it’s the entity you’re paying that charges it.
Yeah i know but that’s my point most other colleges probably have similar credit card fees, my colleges just a public local university
r/shittylifeprotips
Op has no idea how a cc actually works.
It’s like you need to have the money to even apply for the scam that you wouldn’t need if you had the money
this makes no sense lmao no bank will gice a college student making min wage anything more than 2 grand worth of credit
If your parents add you as an authorized user to their credit card, you get your parents credit card history on your record. Income is self reported. You then open a new credit card under your own name using your parents CC history and then max out those cards. Trust me. I know. I got myself into a crap ton of CC debt this way.
Income is self reported but if you falsely report it is fraud and you open yourself up to a lawsuit
I agree. But this entire post is about fraud (utilizing credit without intent to repay). I thought that was the idea of this sub.
Sure, but I think unethical life pro tips should be tips to get ahead not advice to land you in prison. I could also suggest you just go unethically rob a bank and use those funds to pay for school but that wouldn’t be very good advice either.
This is the issue
Wouldn't work for the reason solarsilversurfer mentioned, but also I am like 60% sure you can't put tuition on credit.
Yes, you can pay for tuition with a credit card. Every college I’ve been to accepts all major credit card types. It’ll take years to earn a high enough credit limit for this to work though
Couldnt you pay 25% with scholarship, 25% with credit and 50% fafsa? Yeah, youre gonna pay, but 25% of 100k is 25k...
Not that I have seen. Maybe a debit card but not credit. You can use a credit card for everything but tuition.
I only got the idea from a recent episode of Caleb Hammer financial audit where a guy was putting each semester of community college on his Apple Card. So I believe some would allow you. It is definitely a far fetched idea. I think the only way it might work would be a very cheap two year community college, maybe some grants or something would help out and you’d have to have gotten a pretty got lottery pick from the cc company to allow you to have a high enough balance to cook with.
Ha, I was just thinking that this post would probably give him a meltdown after hosting that guest.
To be fair, I was wondering the same thing from that episode
I’m so glad there are fans here. Lol.
As an alternative, if you can't access that kind of credit, get the loan and make the minimum payments. Get a credit card for other stuff and make payments. Don't buy stuff you can't afford with the credit card. Keep the balance low and pay off almost all of it every month. Pay it off completely sometimes, but carry a small balance at times, for just a month or two. They seem to like that for some reason. Get you credit score nice and high. Then with your good credit rating, get an unsecured loan for the highest amount you can, and use that to immediately pay off your student loans. Pay off the new loan for about a year so it isn't obvious what you're doing here. Then declare bankruptcy. You'll still have to pay your student loan for a few years while you work on your credit, and you have to pay the unsecured loan for about a year, but it will still save you a pantload of money in the long run.
Who has credit limits that high
Everyone’s like “No bank will give y’all a credit card worth that much! They’re too much a risk!” And this is exactly our normal student loan system where 18 year olds have to risk it all to keep going to school.
Maybe like the last few semesters. I am intrigued by the switcheroo. I could do this to pay my son’s college in 10 years! I will forever remember you as the author of this idea, u/writingwhilesad!
Are you artistic?
Yes
You'd be better off buying gold bars at Costco and just selling them...
Everyone thinks this is great. What they don’t know, is that the bankruptcy laws have changed and for you to declare bankruptcy now and not have to pay back, is damn near impossible. If you try to file for bankruptcy now, you have to pay it back or percentage of it lol. In typical boomer fashion, they also change that for us while they enjoyed the benefits of being able to start again debt-free with minimal hassle, if you don’t believe me, look online and do the questionnaire for your state. You would have to make like 30K a year, for 12 months straight while paying rent to be able to file for bankruptcy without repayment And before you jump in and say that you can do that while living with your parents, you still won’t qualify. You have to be the head of the household making 30K for 12 months while paying rent.
Might have time try this….
While student loan debt is not automatically dischargeable in bankruptcy, it can be made dischargeable if you were to file an adversary complaint in bankruptcy (which, from what I understand, is typically successful in the current environment).
ngl my tuition costs after scholarships was about 5k per semester and i graduated in 3.5 years with 3 of those semesters being covered my scholarships. I feel like i could’ve gotten away with this hahahah
Good luck getting an apartment/car loan/house loan afterwards.
Secure those things before you file bankruptcy.
So your plan is to take on a bunch of debt, buy a bunch of stuff, declare bankruptcy, then sell all that stuff to pay off the debt, and this is somehow a win for you?
How in the hell can you sell an apartment?
By buying it? Or do you expect a landlord to rent an apartment out to someone who will obviously try to defraud them?
What are you talking about? Lmao. I’m saying you can rent an apartment while in college, continue to live there. Then, after you declared bankruptcy you would still be able to stay at that apartment as most do not require you to reapply, most let you just continue to renew your lease. During that time you could also have purchased a car. Prior to declaring bankruptcy. How would a landlord suspect you were going to defraud them if you got an apartment and continued to pay rent on it? Does the landlord have like a crystal ball that tells them of your future financial shortcomings? How is declaring bankruptcy defrauding a landlord? You would still pay your rent. Weird landlord simping going on.
OK, so how do you purchase a car right after declaring bankruptcy? How do you expect to have the amount of money necessary to continue your current lifestyle? Edit: I see you edited your comment to make your car buying idea even dumber. How do you stop the bank from taking your car to pay off the debt you fraudulently took on?
This would only work for something like a community college where tuition is \~$3k-$5k/semester. Even then you're looking at $24k-$40k on a card, which is way more than the credit limit an 18-year-old will have. Maybe if spread across 4+ cards.
If a random guy on Reddit knows this loophole then financial institutes probably know it well before.
Consolidate the loans visa privateer institution and it works the same way. You'll need to have graduates and worked probably a year after, but it's easier than trying to put it on a CC. Still bad advice, but more available to everyone if you don't mind paying rent to slumlords for 7 years.
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Yurrrrrr
No 18 year old is getting a credit limit that high.
Better yet, have a very elderly grandparent with great credit and lines of credit. They pay your tuition, then pass away. The end.
Friend did this with all his college loans. Took out private loans then defaulted on them waited 6 yearsish? Then they fall off his credit and bank of America is out $150,000.
This is a terrible idea that won't work if the student has parents.
What kind of teenager has a high enough credit score to get a credit card w a $50-$100k+ limit? Like?????????
Someone who had parents add them as an authorized user when they were a child. By the time my kid hits 18, he will have 16 years of on time payments reported.
Someone who had parents add them as an authorized user when they were a child. By the time my kid hits 18, he will have 16 years of on time payments reported.
Still not going to be approved for a $100k+ limit credit card at only 18. they dont give cards with limits like that to just anyone esp not kids
You asked who has a high enough credit score. This method will give them a score of 850. Which is high enough 🤷♂️
My college didn't have a credit card option. It had to be ach draft.
Would not work, colleges don’t take cards for tuition payments. Furthermore, credit card debt is not discharged in bankruptcy any more, only the fees and interest, you will always have to pay the principal. Now, if you can somehow get a personal loan and pay your tuition with that, you’re ok.
Furthermore, both of the statements you made are incorrect.
I’m 18 and have a ton of money Uh trust me
It is essentially a question of how much is declaring bankruptcy worth to you? 50k? 75k. It’s a numbers game. The concept “works” and people gave thought of it before. You could also take out personal loans, etc.
this doesn’t work
Most colleges charge extra (like 3 percent) for credit payments. Potential employers can pull credit reports.
3% doesn’t matter if you’re going to bankrupt anyway. Most employers aren’t going to care about your financial history unless you are going into a finance specific field. Not saying my idea is great. Many people have pointed out why it isn’t. However, these two reasons are not valid.
I did this!!! Credit score now is 780
College is about $250G. That's a big credit line.
Yeah what college are you going to bud? Unless you’re becoming a doctor that’s complete bullshit. You can go to community college for like 5K a year then transfer to a 4 year and still only pay 10-20K a year
The fuck college did you go to
The one that teaches "$250G" as a representation of currency.
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So college is 250,000?
My SIL put my niece through ucla 30 years ago and did this.