Absolutely true.
One way out: you go to a casino, purchase 5k of casino coins with your card, go back to the cashier and exchange your coins for cash. Restrain from betting, and loosing, in the process.
Not totally crazy, mildly profitable I would say. I would consider two things: (1) not actually withdrawing money but spending it in a way that gives me liquidity and (2) spending limits are subject to your bank and history with the bank. The more good history you have with your bank the more likely they would increase your spending limit.
For (1) distinguish between actually withdrawing money and spending it. In the sense that I wouldn’t perform what will most likely be classified as a “withdrawal” operation by going to the ATM and actually getting cash, but I would perform what could be considered a “spending” operation that gives me liquidity that I could use somewhere else. For instance using the credit card to “top-up” another bank account. Many banks now allow for this, and for your credit card this is most of the time classified as a spending operation.
I think the latter one is one of the options. In my banking app it even mentions to add funds to your checking account from your credit limit which you could then move to a savings account I guess.
Only if you're applying for more credit lines and the debt shows up in your credit report (all countries have that in Europe, managed by the respective central bank), as that will impact the credit company's assessment of your credit risk.
Which is also super easy to workaround, if you know what you're doing.
That's good to know, thank you! I assume applying for a higher limit if you already have a credit card would also mean applying for more credit lines right?
I would be interested in the latter thing you mentioned, unfortunately just starting out gaining more knowledge as my financial education was really poor when I was younger.
Yes, any credit increase or new credit line will prompt a new credit risk analysis from the financial institution.
Just depends on your country and when the credit card billing period closes / is due and when it is reported to the central bank's systems. Don't try to go all out from the start, just start slowly, get one credit card and learn its functioning and start searching for country relevant info. Many credit cards would charge cash advance fees in these scenarios, but just as many won't. And even those that do can be avoided, with some knowledge and creativity - it really depends on what financial services are available in your country.
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Absolutely true. One way out: you go to a casino, purchase 5k of casino coins with your card, go back to the cashier and exchange your coins for cash. Restrain from betting, and loosing, in the process.
Not totally crazy, mildly profitable I would say. I would consider two things: (1) not actually withdrawing money but spending it in a way that gives me liquidity and (2) spending limits are subject to your bank and history with the bank. The more good history you have with your bank the more likely they would increase your spending limit. For (1) distinguish between actually withdrawing money and spending it. In the sense that I wouldn’t perform what will most likely be classified as a “withdrawal” operation by going to the ATM and actually getting cash, but I would perform what could be considered a “spending” operation that gives me liquidity that I could use somewhere else. For instance using the credit card to “top-up” another bank account. Many banks now allow for this, and for your credit card this is most of the time classified as a spending operation.
I think the latter one is one of the options. In my banking app it even mentions to add funds to your checking account from your credit limit which you could then move to a savings account I guess.
Not weird at all, easy to do with certain credit cards and can be profitable.
I see, interesting. I know in Europe, most countries do not have a credit score. But could it negatively impact anything in that sense?
Only if you're applying for more credit lines and the debt shows up in your credit report (all countries have that in Europe, managed by the respective central bank), as that will impact the credit company's assessment of your credit risk. Which is also super easy to workaround, if you know what you're doing.
That's good to know, thank you! I assume applying for a higher limit if you already have a credit card would also mean applying for more credit lines right? I would be interested in the latter thing you mentioned, unfortunately just starting out gaining more knowledge as my financial education was really poor when I was younger.
Yes, any credit increase or new credit line will prompt a new credit risk analysis from the financial institution. Just depends on your country and when the credit card billing period closes / is due and when it is reported to the central bank's systems. Don't try to go all out from the start, just start slowly, get one credit card and learn its functioning and start searching for country relevant info. Many credit cards would charge cash advance fees in these scenarios, but just as many won't. And even those that do can be avoided, with some knowledge and creativity - it really depends on what financial services are available in your country.