Originally Posted by
sydneyracquelle
The funny thing is even if defaults skyrocket people can still earn medallion status which requires “spend” but not necessarily “pay off your Amex bill”. In theory people can spend up to their limit and just make minimum payments. Obviously horrific financial planning at 30% interest but at least I can brag that I’m a DM.
While in theory this is possible, the reality is that the earning rates for credit card are so low earning any meaningful Medallion status would be very difficult not paying off your bill, no matter how good your credit is AMEX will start cutting your ability to spend at some point, and many of those with poor math skills will realize spending $2k/month on airline tickets is better than spending $2k a month on interest.