Tell me why I should not use credit lines to buy a house?

Question by Jack L: Tell me why I should not use credit lines to buy a house?
I have excellent credit and have lots of credit cards with high limits and no or low interests (from 0 to 2.99%). I have been switching them from one another when their terms expired. I’m thinking about using them to buy a house. I could beat the current 6.375% and avoid from having a mortgage. With a house title in my hand I could take time to pay off these credit cards. Worse I could have a bad credit but still have a house. What’s pros & cons?

Best answer:

Answer by leelee
look at the economy right now! do you really want to do that??

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  1. smokeater1213 says:

    All you’re going to do is get yourself deeper in debt. By switching around, you’re just robbing Peter to pay Paul and anything over 5.25% on a mortgage ( is it fixed or balloon) is insane. Limit yourself to just a couple of CCs. And by the way, if you have bad credit, you WON’T have a house! I don’t know how long you have had these CCs, but most companies suck you in to a (pre-approved) rate for a short amount of time like 2-3% and after a year or less inflate it to over 21%. Something to think about.

  2. sure, no problem! says:

    Try watching the documentary “Maxed Out”
    Its on Netflix and can be watched directly on your laptop.

    Once you put large balances on those cards, the card company can decide to increase your rate. They can change the terms at anytime. Keep in mind you’re doing cash advances as well, which have different terms then simple purchases most of the time.

    They usually disquise term adjustment notices as junkmail and if you dont catch it …up goes your rate.

    I happened to catch mine and read the 12 pages of fine print to discover that I could decline the increase but basically had to quit using the card forever. One purchase on it and the rate would become valid again.

    As far as ditching the credit card debt and keeping the house I dont know if legally you would get away with it………..i’ll let a bk attorney speak on what a judge would say on that one. Wouldn’t shock me though if you could.

    Morally, if that even enters as a consideration in your world, it would be wrong. Generally speaking those who operate with intent to defraud usually find their just rewards in their personal and business life at some point.

    sure, no problem!

  3. tinah says:

    A trap with doing this is that some company’s don’t allow you to transfer the balance and get the cheap rate if your transferring from a card they also own but under a different trading name. At some point you’ll run out of cards to transfer between.

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