588-Credit_Card_Loans_Can_Provide_a_Way_to_Privately_Purchase_Goods_and_Services
00:00:00.000 | Hey, parents, join the LA Kings on Saturday, November 25th for an unforgettable kids day
00:00:04.960 | presented by Pear Deck. Family fun giveaways and exciting Kings hockey awaits. Get your tickets now
00:00:10.480 | at LA Kings dot com slash promotions and create lasting memories with your little ones.
00:00:14.960 | Welcome to Radical Personal Finance, a show dedicated to providing you with the knowledge,
00:00:17.680 | skills, insight and encouragement you need to live a rich and meaningful life now
00:00:21.600 | while building a plan for financial freedom in 10 years or less. My name is Joshua. I am your host.
00:00:26.800 | And this in this episode today, we continue our credit card theme week. I've been celebrating the
00:00:32.560 | launch of my brand new credit card course called How to Borrow Money Safely and Never Pay Interest
00:00:38.240 | Using Credit Cards. And as part of the launch festivities, I'm sharing with you this week
00:00:43.360 | excerpts from the audio of particular modules of the course. Yesterday, I shared with you
00:00:48.560 | the audio called Credit Card Debt is a Very Safe Form of Debt. Today, I have a segment entitled
00:00:54.160 | Credit Card Loans Can Provide a Way to Privately Purchase Goods and Services. And we'll get right
00:00:58.880 | to that in about 120 seconds. And I'll just simply share with you that audio. But this
00:01:04.240 | fills a niche and talks about something that I think is underappreciated about credit cards.
00:01:08.720 | And I really want you to be equipped with that information. Remember, during this launch week,
00:01:13.040 | from now, Tuesday, October 9, until this coming Monday, October 15, 2018, you can save 10 bucks
00:01:22.480 | on the purchase of the course. Here's how you buy. Go to RadicalPersonalFinance.com/creditcardcourse.
00:01:28.960 | Again, RadicalPersonalFinance.com/creditcardcourse. Use the coupon code CREDITCARD10,
00:01:34.720 | T-E-N, CREDITCARD10, in the next week. And that'll save you $10 off it, bringing you the
00:01:39.440 | total cost of the course down to $29. Now, remember, $29 is equivalent to about one month's
00:01:46.400 | interest payment on a $2,000 credit card debt. So if you ever think you would have it and you
00:01:50.720 | want to figure out how to even eliminate that, it's a great deal. Go to RadicalPersonalFinance.com/creditcardcourse.
00:01:56.800 | Use coupon code CREDITCARD10. Now, sit back and enjoy this audio, which is an excerpt from the
00:02:02.320 | course called "Credit Card Loans Can Provide a Way to Privately Purchase Goods and Services."
00:02:08.000 | Credit card loans themselves have a benefit of providing you with a way or multiple ways
00:02:16.560 | to privately purchase goods and services. Now, there are different levels to privacy.
00:02:22.720 | The first thing to consider is actually the transaction itself, the actual credit card
00:02:28.000 | transaction. And this transaction has varying levels of privacy, but it's worth considering
00:02:33.520 | that even though we usually don't think of credit card transactions as being private,
00:02:38.320 | they do give you a measure of privacy and protection. First, of course, the individual
00:02:43.680 | credit card transactions that you engage in can generally be kept private from other private
00:02:48.640 | individuals. Consider, if all that exists in your normal banking records is that you've made a
00:02:54.160 | normal payment to credit card company X, how can another person find out what you've actually
00:02:59.440 | purchased, especially if the transaction statements from the credit card company have been separately
00:03:05.520 | secured or destroyed? Nobody can go through your banking records or your checkbook and find out
00:03:12.000 | exactly what you bought with the credit card. They would need the actual credit card statements
00:03:17.360 | and the actual receipts. So you can use credit cards to structure your transactions and keep
00:03:22.000 | them private from other individuals. Also helpful is you can use credit card transactions to maintain
00:03:28.560 | privacy from things like banking inquiries. If you go to apply for a mortgage from a standard lender,
00:03:36.160 | one of the standard pieces of documentation that you need to provide in your loan application
00:03:40.880 | is several months of recent banking records. If you use a debit card for all of your normal
00:03:47.280 | transactions, now all of those transactions are going to be exposed to the scrutiny of that banker.
00:03:55.040 | This may or may not be a problem. This may or may not be information that you would prefer to keep
00:03:59.760 | private. Now, if you make all of your transactions on a credit card and then once per month simply
00:04:05.680 | make a payment from your checking account to your credit card, now you can effectively shield
00:04:12.880 | the actual substance of those transactions from the mortgage lender. They will be able to know
00:04:19.040 | how much you owe on the credit card because they'll pull your credit report, but they have
00:04:23.600 | no need to actually see the individual transactions. Your $1,000 payment to the credit card company this
00:04:30.320 | month may be $110 transactions or it could be one single $1,000 transaction. They have no way to
00:04:39.120 | know, so that gives you a little bit of additional privacy in your transactions. Even the actual
00:04:45.520 | transaction record itself really only includes the merchant's information. So, depending on the
00:04:51.440 | merchant, you may be able to obscure the specific items or services purchased. A $1,000 spent at the
00:04:57.040 | local electronics store could be one $1,000 item or it could be multiple smaller items, and that
00:05:03.920 | information is not recorded in the credit card transaction. So, that can be helpful as a measure
00:05:09.040 | of privacy. In addition, you can sometimes use credit card transactions in a more obscure way
00:05:15.520 | by using the credit card itself as a funding mechanism and using a third-party payment system
00:05:21.440 | as the payment mechanism. An example here would be PayPal. You fund your PayPal account with a
00:05:27.680 | credit card and now you have an additional layer of protection over your transaction.
00:05:33.600 | Or perhaps you create a virtual credit card using a payment system such as Blur,
00:05:38.960 | and you charge that to your existing credit card. Now you have an additional level of protection,
00:05:44.560 | so you can obscure your transactions further. And perhaps most importantly, you can always use a
00:05:50.720 | credit card for a cash advance. And as with any other physical cash transaction, once you slide
00:05:58.560 | your credit card into the cash machine and take money out, you can then take that money and do
00:06:03.600 | anything that you want with it. The records stop when the cash comes out of the ATM machine.
00:06:09.200 | This is very, very helpful because the credit card doesn't ask you what you're going to spend
00:06:15.840 | the money on. That's different than applying for an auto loan where they know you're going to spend
00:06:20.400 | the money on a car. That's different than applying for a furniture loan where they know you're going
00:06:25.520 | to spend the money on the furniture. You slide that credit card into the ATM, you take the cash
00:06:30.960 | out, and you buy whatever products or services you need to buy. And the credit card company itself
00:06:37.280 | doesn't know the content of those transactions. And of course, one of the most cost-effective
00:06:42.640 | ways for you to do this is to use a credit card to purchase your normal items, which then easily
00:06:50.080 | frees up cash in your checking account for you to purchase perhaps more private items. So you can
00:06:56.000 | use the credit card as a payment mechanism while still being able to access cash that you can then
00:07:02.880 | use for other private transactions. When you add these benefits together, the ability to access a
00:07:09.280 | loan with significant privacy is very helpful. The most important feature of this is that because a
00:07:16.080 | credit card is not a secured debt, it can allow you to purchase items without making a specific
00:07:23.600 | loan application, which is then connected to a specific item. That is worth your considering.
00:07:32.000 | Now, one other major aspect of privacy of transaction and privacy of credit is credit
00:07:41.200 | cards can provide for you needed funds without any personal entanglements or obnoxious privacy
00:07:49.600 | invading loan applications. It's much easier for you to fill out a loan application to
00:07:55.360 | credit card company X in the privacy of your own home, in the privacy of your own web browser,
00:08:00.880 | than it is for you to go to your wealthy uncle or wealthy aunt and ask them for money.
00:08:09.200 | They don't even have to know about your credit card application to credit card company X. So
00:08:15.760 | this allows you to borrow money very privately without having any personal entanglements.
00:08:23.200 | It also allows you to borrow money without making any statement of the other aspects of your
00:08:32.560 | finances. Some loan applications are quite invasive in terms of their level of specificity
00:08:40.240 | that they require of your personal financial situation, but credit card loan applications
00:08:44.320 | are not that way. Generally, they will simply pull your credit report, ask you what your household
00:08:50.160 | annual income is, inquire about the amount of your rent payment or mortgage payment and whether you
00:08:56.800 | own your own home or not, and from there, they will do their underwriting simply based upon
00:09:02.080 | your credit score. Again, that's different than many other forms of financing which ask many more
00:09:07.760 | detailed questions. But when you can combine privacy of money while also avoiding personal
00:09:16.160 | entanglements, you have a very high quality of loan. Now in addition, if you are in a worst-case
00:09:25.120 | scenario and you default on your debt, if you have arranged things appropriately, that default
00:09:32.560 | can frequently be kept private. It can be kept private from employers. It can be kept private
00:09:38.160 | from family members. That default itself can be managed privately while maintaining the quality
00:09:44.880 | of your other relationships. This is very helpful because if you borrowed money from your wealthy
00:09:51.200 | aunt or uncle and you default on that payment, your holiday dinner will taste a little bit different
00:09:58.160 | as both of you try to eat through in the midst of the unpaid debts.
00:10:04.480 | These are major benefits of credit cards. So if you put together these benefits and perhaps others
00:10:12.240 | that are more important to you, you will find that when you need debt, credit cards actually have
00:10:19.680 | major benefits to offer and you should seriously consider them.
00:10:23.040 | Now, if that piqued your interest and you'd like more, remember there are many more arguments for
00:10:28.640 | credit cards. Go and sign up for the course now. Go to radicalpersonalfinance.com/creditcardcourse,
00:10:33.600 | link in the notes for today's episode. Use the coupon code "creditcard10" to save $10 off,
00:10:39.360 | bringing the total cost of the course down to $29. And as with anything, 30-day complete
00:10:44.400 | guaranteed money-back guarantee. So if for any reason you view the whole course and decide you're
00:10:48.960 | dissatisfied, guaranteed 30-day money-back guarantee. Thank you so much. Go to radicalpersonalfinance.com/creditcardcourse
00:10:54.880 | and sign up. Remember tomorrow, there'll be a new segment called "How to Manage Cash While You Pay
00:10:59.200 | Off Your Credit Cards." And on Friday, I'm hosting a live Q&A call for anyone who has purchased the
00:11:05.440 | course. That call will be available for anyone who has purchased the course. If you'd like to
00:11:09.680 | talk to me about specifics of your situation, get specific advice that's applied to any questions
00:11:15.200 | you have on the subject of credit cards, sign up for the course, and you'll get access to that live
00:11:19.200 | call. And I hope you do because I don't want to have crickets. I'm advertising the show and that
00:11:23.280 | would be really embarrassing not to have any callers. So come on, you don't want me to be
00:11:26.720 | embarrassed, do you? Have a great day. Hey, parents, join the LA Kings on Saturday, November 25th,
00:11:33.280 | for an unforgettable Kids Day presented by Pear Deck. Family fun, giveaways, and exciting Kings
00:11:38.320 | hockey awaits. Get your tickets now at lakings.com/promotions and create lasting memories
00:11:43.680 | with your little ones.