Cardit is WRONG! Another "paying mortgage with CC" thread
 

there have been a lot of threads about trying to pay a mortgage payment with a credit card so you earn miles and I wont bore anyone with all the past ways or theories, nor will I point to those threads here, but I am writing this because of an ad I saw just now right here at FT.

http://cardit.com/

This ad is above your screen sometimes and frankly it seems rather expensive.

I figure, when doing the rough math, a mortgage payment of $2000 per month would cost you about $70 extra using their program to pay with a mileage earning CC. That's wayyy too much.

Why, that money could be invested or used for another payment if saved up, or better yet, you could BUY some plane tickets with a few months of that fee added together!

I think for this reason alone, the ad is misleading and against many of the theories of this very web site. Oh sure, it talks about a coveted issue here in mile land, but what a scam! I think it should be gone or the stickies should highlight that no one should use it!

Points.com has better rates for stuff and there ARE actually other existing ways (roundabout and multi stepped as they may be) to do the mortgage/mile thing... you'll just have to look, think and be creative :D

:)MM

You may feel it's overpriced, but as long as they don't hide the fees, it is not a scam. I'm sure some people will think it's a good deal for the miles they need. That's up to each person to evaluate.

Hi Marathon Man,

Thanks for your interest in our service. There has been extensive discussion as to our fees and their related value for mileage enthusiasts at the following thread:

http://www.flyertalk.com/forum/showthread.php?t=737887

While some find it expensive, others have found ways to significantly benefit from using our site.

If you have any questions or suggestions to make our site better, feel free to contact me at jake (at) cardit (dot) com.

Best Regards,

- Jake

Let's add that up over 12 months: $840 for 24,000 miles - And no EQMs.

Of course, you could get almost the same # of miles by signing up for a credit card.

At those prices, I think most of us will pass, but some people are desperate for miles ... :D

well Jake --yes, maybe I came out too strong at the gate here, and I appreciate that you may be trying to create a product that could service fellow flyers, but I have one more question...

HOW is it that someone can post something that clearly promotes another business on FT?

I once mentioned a realty/rental company friend of mine in the Bahamas by pasting in part of her email on my own (without her asking me to) in a relevant thread on the region and nearly got kicked off this forum! (later it was realized there was a much more innocent misunderstanding going on and that worked out for me safely)

I realize Jake's Cardit advertizes here and all, and that the product does answer one of the things many FTers have always wondered about in terms of getting miles (but my friend's company arguably could answer many questions people who go to the Bahamas would wish to know too if people heard of her) but someone please tell me how this is different?? Perhaps a MOD is able to inform us all here?...

As well, I know there are several different mortgages or other payment situations out there and ok, it's not a 'scam' if it reveals so clearly how the fees are set up, but this does play off the desperation of people (perhaps all too eager newbies who jump too quickly) who may not so quickly see that the cost of doing it is rather prohibitive if one is trying to save money while flying. In that sense, it certainly does, in my opinion, lean toward the sad conversion rate thought process of companies like Points.com and the like./

;)MM

I wouldn't call it "desperation" at all. If anything, it's "ignorance," but even that's not the case. A business advertises a service or product at a certain price; it is up to the consumer to decide whether that price is "fair" and/or is worth it to him. This is called "business."

It is the consumer's job to do his homework and make the judgement of whether or not a given service/product is worth a given price. Some people are ignorant, don't do their homework, and pay a price because they don't know any better. Others may do their homework and decide the service/product has sufficient benefits to be worth its price. Others may find the price sufficiently acceptable at first glance and decide it's more worth it to pay than to waste time looking for better deals.

Safeway prices are at least 10% higher than Target prices for identical items... does that mean Safeway is playing off the desperation of its customers? No, it means Safeway's customers are willing to pay those prices, whether it's because of the added convenience, the lack of desire to shop around, or because of ignorance.

Moreover, even if a business does play off desperation, that's still "just business." Airlines charge more for last-minute tickets; shippers and retailers charge more for faster shipping; banks charge more for wire transfers; emergency vets charge more than regular vets, and so on. When things absolutely have to get done, people are willing to pay more, and businesses know that. Should they have pity on us, sympathize with us, and charge us the regular price? Maybe... but that's not business. (And yes, I realize there are exceptions, e.g. bereavement fares... but those are reserved for truly special circumstances.)

A business is neither obligated nor expected to always provide the lowest price or best deal, nor to educate its customers and do their homework for them. It is up to the customer to decide whether a given price is "worth it" and then to buy or not. If it's not worth it to you, don't buy it... that doesn't mean it's not worth it to someone else. I absolutely agree that we should provide as much information to each other as possible, but we should not be making subjective judgement calls on behalf of others. Calling something "WRONG!" or "not worth it" or "sad" is an entirely subjective and personal opinion. It is up to the individual consumer to decide whether something is "worth it," given that individual's unique circumstances.

I'm just amazed that people are actually reading and clicking on these new ads...

In this case I think it's OK. (I have no financial interest in Cardit, personally think the fee is too high for the value I place on getting more miles, and do not expect to use it.) He didn't bring up the topic. His company was criticized for offering no value, indeed for ripping off the innocent public. His reply, whether or not one agrees with its content, was reasonable and calm.

There are many instances of this throughout FT, including airlines/hotels defending their policies from criticism (some fair, some not) and a thread that comes to mind involving a motor built into the front landing gear of an aircraft to move it on the ground. I'm not a moderator, but I see no grounds for disallowing his post.

If posts like this were not allowed, anyone could criticize anything for any reason or no reason (after all, criticism isn't forbidden, only promotion) and it would be impossible for anyone else to respond with any content.

I agree with the It's business post. I do agree that consumers should do their homework.

I do not think Jake's post is bad. It is very good in fact--especially since I started out blasting his service.

I do still wonder how and why his product gets to be promoted here--well, wait a minute... he had only posted AFTER my negative publicity so I am the one promoting it, and he is only responding and others are reading. So in a way, we both "win." He wins because there's more exposure, explaination and clarification, plus many added intellegent opinions from a variety of experienced posters, and others win, myself included, who hope the newbie consumer doesnt fall into something that may need a bit more looking at.

OK, I'll retract some of my initial bursting frustration and say this: I am glad jake and his company made an effort to solve the problem of mortgages with credit cards and after all, some have paid the often high fees to pay their taxes in similar ways using similar services offered for IRS, State and even property tax bills. However, I just hope people look out for everything and make eductaed purchases. I also hope that if people have FT related products and services, like jake's cardit and my friend's realty gig, that maybe they CAN more prominently post about them. In his case, again, it was me who brought it out and he had to reply, but it just seems the line is fine. Of course he did advertise here as well, so maybe that's the key.

He has a grand total of 6 posts, all in response to topics initiated by others discussing his service.

This is like blasting Starwood Lurker for responding to posts discussing the SPG program.

Personally, I appreciate posters like William, socrates, BoeingBoy, GalleyWench and the like, providing information about the business they are in and the company they work for. They have a long history here, so I believe these actions in no way violate the ToS.

Blantant promotion, such as http://www.flyertalk.com/forum/showthread.php?t=744803 , is where I would be concerned.

Some people still see ads on FT? It is beyond stupidity not to pay for premium access if one uses FT at any regularity.

Theres a premium access?
;)