| View previous topic :: View next topic |
| Author |
Message |
640x480
Joined: 02 Apr 2008
|
 Posted: Thu Oct 30, 2008 3:34 pm Post subject: Have you been using ur U.S. credit cards? YOu should... |
 |
|
Because of the exchange, we can save like 40% on purchases made here with your U.S. card.
Find a place with a sale and you are making out like a bandit. |
|
| Back to top |
|
 |
call_the_shots
Joined: 10 Oct 2008
|
| Posted: Thu Oct 30, 2008 3:46 pm Post subject: Re: Have you been using ur U.S. credit cards? YOu should... |
|
|
| 640x480 wrote: |
Because of the exchange, we can save like 40% on purchases made here with your U.S. card.
Find a place with a sale and you are making out like a bandit. |
For those of us who are not so financially savvy, could you explain a little more about how you would save money this way?
I always thought banks do whatever it takes to profit off of us in any way possible (including exchange rates) |
|
| Back to top |
|
|
640x480
Joined: 02 Apr 2008
|
| Posted: Thu Oct 30, 2008 4:20 pm Post subject: |
|
|
apparently my friend bought his glasses using his U.S> credit card.
The bill came out way less because of the exchange rate.
It's not that he took dollars, changed it to Won...that would suck...but it's somehow like using dollars to directly buy things in Won.
I don't think I'm making much sense though...sorry |
|
| Back to top |
|
|
itstiff
Joined: 16 Oct 2008
|
| Posted: Thu Oct 30, 2008 4:23 pm Post subject: |
|
|
Like you said, you're using the USD $ to buy Won. Since, prices in Korea have stayed the same .. but the won has plummeted, you're paying far less for the item by using USD.
Just make sure your credit card isn't charging you international conversion fees. |
|
| Back to top |
|
|
640x480
Joined: 02 Apr 2008
|
| Posted: Thu Oct 30, 2008 4:23 pm Post subject: |
|
|
| So I guess you're getting 40 cents extra for every dollar.... |
|
| Back to top |
|
|
mindmetoo
Joined: 02 Feb 2004
|
| Posted: Thu Oct 30, 2008 4:24 pm Post subject: |
|
|
| It's not a bad idea to keep your card active and keep some credit history. |
|
| Back to top |
|
|
IlIlNine
Joined: 15 Jun 2005
Location: Gunpo, Gyonggi, SoKo
|
| Posted: Thu Oct 30, 2008 4:27 pm Post subject: |
|
|
| This is all assuming you have funds in the US to cover what you spend. If you have to send back won to pay for your credit card bills, you're right back where you started. |
|
| Back to top |
|
|
wanderingross
Joined: 13 Oct 2008
Location: Incheon
|
| Posted: Thu Oct 30, 2008 4:30 pm Post subject: |
|
|
It depends on your outlook.
This only saves you money if you think the Won will appreaciate against the dollar before you have to pay your next credit card bill. And it will have to appreciate by more than the exchange fees from Dollars to Won plus the fees back from Won to Dollars. And there is always the possibility that it will depreciate in which case you lose double.
The bid ask spread at most banks is right around 50 Won. Therefore you'd need an appreciation of 100 won/dollar within your next billing cycle for this to actually make sense. The current bid on Dollars is right around 1250 Won. Therefore you'd need that rate to drop to sub 1150 before your payments were due for you to realize any kind of gain on such a transaction.
** REMEMBER. $1 might buy you 1250 Won, but you'll need 1250 Won to pay back every $1 spent on an American credit card... It's not magic.
I personally think this is a dumb idea. |
|
| Back to top |
|
|
r.
Joined: 06 May 2006
|
| Posted: Thu Oct 30, 2008 4:56 pm Post subject: |
|
|
| IlIlNine wrote: |
| This is all assuming you have funds in the US to cover what you spend. If you have to send back won to pay for your credit card bills, you're right back where you started. |
bingo! |
|
| Back to top |
|
|
640x480
Joined: 02 Apr 2008
|
| Posted: Thu Oct 30, 2008 5:23 pm Post subject: |
|
|
Well, it's not really dumb if you have funds back in the states then.
So use it if you got some cash back home...if not, at least the won rose to the 1200's... |
|
| Back to top |
|
|
Ukon
Joined: 29 Jan 2008
|
| Posted: Thu Oct 30, 2008 5:36 pm Post subject: |
|
|
| IlIlNine wrote: |
| This is all assuming you have funds in the US to cover what you spend. If you have to send back won to pay for your credit card bills, you're right back where you started. |
Indeed when i saw my credit bill i was like sweet....then i said oh wait... |
|
| Back to top |
|
|
Scotticus
Joined: 18 Mar 2007
|
| Posted: Thu Oct 30, 2008 5:51 pm Post subject: |
|
|
| IlIlNine wrote: |
| This is all assuming you have funds in the US to cover what you spend. If you have to send back won to pay for your credit card bills, you're right back where you started. |
Truism. If you don't have money in the bank at home, then you're basically banking on the hope that the exchange rate gets better before you have to pay for it, or else it comes out to you paying the same amount. |
|
| Back to top |
|
|
warmachinenkorea
Joined: 12 Oct 2008
|
| Posted: Thu Oct 30, 2008 10:23 pm Post subject: |
|
|
| What if you used your debit card to take out cash at the ATM? My wife and I send only $1500 home then keep the won in the bank and send it home when the rate gets good. I think it's a good idea if you got money at home to pay your bill. |
|
| Back to top |
|
|
nizpaz
Joined: 09 Oct 2008
Location: Seoul, South Korea
|
| Posted: Thu Oct 30, 2008 10:35 pm Post subject: |
|
|
Yes but you still need to pay off the credit card or you incurr interest. If you have money at home to do that, then ok. So why not just withdraw that cash from an ATM and cut out the service charge of using the credit card? But if you need to pay back the balance by sending won changed to dollars home, then you're losing out.
It just feels nice I suppose to percieve the notion of getting a bargain. |
|
| Back to top |
|
|
lowpo
Joined: 01 Mar 2007
|
| Posted: Thu Oct 30, 2008 11:04 pm Post subject: |
|
|
| 640x480 wrote: |
apparently my friend bought his glasses using his U.S> credit card.
The bill came out way less because of the exchange rate.
It's not that he took dollars, changed it to Won...that would suck...but it's somehow like using dollars to directly buy things in Won.
I don't think I'm making much sense though...sorry |
We bought our airline tickets with our US credit card last week. I hope that it will go back up before I have to make a payment. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
