[RayVR]

You are missing the point of credit cards vs long term loans.

> The main reason people don't use credit cards to buy houses now is due to the credit limit.

suppose you want to buy a $500k home. You go to a bank and they offer you 30 years at, say 3.5%.

You go to your credit card provider and somehow get a $500k limit. Your payments looks something like 1 (one) month at 0% or as long as it takes (based on minimum payment) at 16.99%.

Which do you choose?

If you think you can change the economics of the credit card to be closer to the bank, you will end up with many of the same overheads that the bank has, and you will no longer be a credit card. I.e., you will not provide near instantaneous access to a line of credit.

[leanstartupnoob]

The point is that credit cards are just lines of credit. Which typically have the high costs that you pointed out. But there's nothing special about the 16.99% interest rate and many people have cards with special intro rates at 0% lasting for 6-12 months.

I don't see a lot of reasons why we can't eventually have pre-approved 30-yr mortgage credit cards accepted by companies like OpenDoor focused on selling houses.