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A friend of mine with a sterling credit history and a large income got the better of his cc companies. He recently had a custom home built and paid the contractor in several enormous payments with his credit card and paid off the cc balance with home loan money (this is how I understood it). Now he has enough frequent flyer miles for a trip around the world. I didn't get all the particulars of how he set this up, but I thought it was an interesting debt management strategy.
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<<A friend of mine with a sterling credit history and a large income got the better of his cc companies.
He recently had a custom home built and paid the contractor in several enormous payments with his
credit card and paid off the cc balance with home loan money (this is how I understood it). Now he
has enough frequent flyer miles for a trip around the world. I didn't get all the particulars of how he
set this up, but I thought it was an interesting debt management strategy.>>

Did something like this last time I had medical bills. Prepaid the discover card (the bills were higher than the limit), and then charged. The prepayment was just before the charge (called to see if it was in), so got money back instead of paying in cash.

Crazyfred
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A friend did something similar. The place where he works needed an expensive piece of medical equipment. They cut him a check for it. He called up AMEX, sent them the check, and then they authorized the purchase for $1 million. 1 million frequent flyer miles in the bank.

Not bad, eh?
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These are great ideas, but are they legal?
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<<These are great ideas, but are they legal?>>

The ones suggested are. It is legal to prepay a credit card. It is legal to buy something for a company and be reimbursed for it. However, I don't know what the tax issues are for credit card bonuses for business reimbursements. It's not like a credit card refund for something you buy for yourself, and may be considered taxible income by the IRS. If I pulled a stunt like that for more than a nominal amount, I'd talk to a tax advisor.

Crazyfred
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