nandri hai
yeah managing a business with credit cards is challenging.

No i did not mean to say that he actually bought a house/flat with that two lakhs. If my post gave you that impression, then its my mistake.

The reference to home loan is to merely hint that ‘even’ home loans, which comes with documentation, collaterals, income eligibility etc are more expensive. i think i missed out even in my post.

BTW he uses more than a handful of cards from nearly all the banks. He utilizes a set of cards at any given point. The rest are dormant.
He never makes any purchases using any of these.
He has a separate 10,000 rupee limit card for that.
He maintains an excel sheet to track all CC dude dates, amount in debt, minimum amount paid for each card. etc.

I made the mistake of ‘advicing’ him earlier on. Not anymore. I think he knows what he is doing.

1. You don’t get tax rebate if you don’t take the loan as home loan. Overall, you might end up with loss considering that you have to invest more and/or pay more tax

2. Credit card interest rates are *highly* volatile. It might increase slowly and without you getting any hint of an imminent increase.

3. 2Lakhs - Is it me or that amounts seems really really low in today’s world?? Typical home loan starts from something like 7-8L — an amount not possible to ‘hack’ into using cr. cards

Not any more though….

Here’s the king of app-o-rama http://www.fatwallet.com/forums/finance/632935

Initially this worked well and I used to get a ‘float’ which buffered and also supported other expenses. As customers defaulted or delayed, this was not so easy or cheap.

As per freedictionary.com, one of the meanings of bankroll is “To underwrite the expense of a business venture”.

Here, I meant not only the costs associated with starting a business but also the capital itself.

thanks for the info. sounds interesting. bank roll na enna? how does it work??

reg. my friend, i’ve never seen anyone who has exploited the rules for balance transfer as well as he has

BTW, there are a number of people here in the US who use CCs to bankroll their modest startups. I remember reading about a famous startup whose founder used 35 cards to fund his venture.