Credit Cards Center Credit cards from our partners
Reply
Frequent Contributor
Posts: 317
Registered: ‎05-24-2013
0

Re: Chargesmart.com


enharu wrote:
Well you can use your CSP as well. If I'm not wrong, I think you break even using a 1% card for GC purchases. UR points are worth more than 1ccp though if you use it the right way.

It really depends. Some people think it's not worth the risk of getting AA if you are just breaking even. Personally I find it too troublesome for what it's worth, but if you can spare the time and effort go for it.

AA?

 

I believe that I can use the BCP at a grocery store for four months, getting 3 $500 gift cards. This results in $360 back and $71 in activation fees. For next month, I can use my Freedom card at Kohls (or gas stations if they have cards) and get 5% back for one month (up to $1,500). After that I can use my BCP for four months at a department store and get 3% for buying the gift cards there. Then process all through Blue Bird.

Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
0

Re: Chargesmart.com

The 5% for freedom and discover applies mostly at pumps only. I forgot which card was it but one specifically mentions at the pump only. The convenience store inside the gas station are sometimes coded as a grocery or convenience or a store of some sort, so it does not fall under the 5% gas station category.

If you are already spending 500 a month on groceries, don't bother using bcp for gift cards. You will reach the cap anyhow without having to pay any activation fee. Use another card instead.

AA = adverse actions. Banks sometimes take adverse action, such as closing account(s) and/or blacklisting the customer, if they feel you have abused the card rewards program.

1-2 thousand worth of GC each month should be fine in most cases, but it also depends on how much you are using on those cards. If those GC purchases make up for the bulk of your charges, then the chances of you running into issues with the banks are higher. Theres no clear definition of how much in GC/VR purchases is considered as abuse as well, so its kinda a YMMV situation depending on your profile and also luck.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Super Contributor
Posts: 12,331
Registered: ‎04-22-2013
0

Re: Chargesmart.com

AA = Adverse Action, your lender closing your card or reducing limits etc.   At the rate you are thinking about, this is a very unlikely event.

 

But, per Enharu's point, remember the value of your time!  You are trying to avoid only  $20 a month, so it only makes sense if there is very little extra time and/or driving spent

Frequent Contributor
Posts: 317
Registered: ‎05-24-2013
0

Re: Chargesmart.com


longtimelurker wrote:

AA = Adverse Action, your lender closing your card or reducing limits etc.   At the rate you are thinking about, this is a very unlikely event.

 

But, per Enharu's point, remember the value of your time!  You are trying to avoid only  $20 a month, so it only makes sense if there is very little extra time and/or driving spent


We figured out the numbers and it goes like this:

 

For four months out of the year we use BCP at a grocery store maxing out $6,000 just with gift cards at 3%. Ending up with a net of $289.00.

For one month this year I buy gift cards at Kohls on Freedom maxing out $1500 just with gift card. Ending up with a net of $57.

For four months out of the year I buy gift cards at Kohls on BCP maxing out $6,000 with gift cards at 3%. Ending up with a net of $109.

 

At the end of that I would have purchased $13.5k in gift cards, paid nine months of rent at $12,060 ($1340/month), and therefore end up with $1,440 unspent, which will take on another month of rent, equally 10 months. The additional $39 will be grocery store purchases, etc.

 

For the last two months we will pay the $20 convience fee to our CSP. Subtracting $40 from our net of $455 to $415.

 

I am afraid of getting AA'd then. This seems perfectly legal though.

Frequent Contributor
Posts: 317
Registered: ‎05-24-2013
0

Re: Chargesmart.com

No worries about the time! Smiley Happy I spend most of my weeks in the grocery store when I'm not working because I don't eat out! This would not be much time at all. Wal Mart is within 5 minutes of my work.
Frequent Contributor
Posts: 317
Registered: ‎05-24-2013
0

Re: Chargesmart.com


enharu wrote:
The 5% for freedom and discover applies mostly at pumps only. I forgot which card was it but one specifically mentions at the pump only. The convenience store inside the gas station are sometimes coded as a grocery or convenience or a store of some sort, so it does not fall under the 5% gas station category.

If you are already spending 500 a month on groceries, don't bother using bcp for gift cards. You will reach the cap anyhow without having to pay any activation fee. Use another card instead.

AA = adverse actions. Banks sometimes take adverse action, such as closing account(s) and/or blacklisting the customer, if they feel you have abused the card rewards program.

1-2 thousand worth of GC each month should be fine in most cases, but it also depends on how much you are using on those cards. If those GC purchases make up for the bulk of your charges, then the chances of you running into issues with the banks are higher. Theres no clear definition of how much in GC/VR purchases is considered as abuse as well, so its kinda a YMMV situation depending on your profile and also luck.

I would be losing money if I used my CSP with only 1:! points. Same with the Freedom. My only other card is the Hyatt, which I don't think that is worth it unless I found a way to spend ~$5k more in order to make $20k/year and get stays towards platinum (whatever that means).

Valued Contributor
Posts: 1,145
Registered: ‎04-13-2013
0

Re: Chargesmart.com


jenn_bar wrote:

enharu wrote:
The 5% for freedom and discover applies mostly at pumps only. I forgot which card was it but one specifically mentions at the pump only. The convenience store inside the gas station are sometimes coded as a grocery or convenience or a store of some sort, so it does not fall under the 5% gas station category.

If you are already spending 500 a month on groceries, don't bother using bcp for gift cards. You will reach the cap anyhow without having to pay any activation fee. Use another card instead.

AA = adverse actions. Banks sometimes take adverse action, such as closing account(s) and/or blacklisting the customer, if they feel you have abused the card rewards program.

1-2 thousand worth of GC each month should be fine in most cases, but it also depends on how much you are using on those cards. If those GC purchases make up for the bulk of your charges, then the chances of you running into issues with the banks are higher. Theres no clear definition of how much in GC/VR purchases is considered as abuse as well, so its kinda a YMMV situation depending on your profile and also luck.

I would be losing money if I used my CSP with only 1:! points. Same with the Freedom. My only other card is the Hyatt, which I don't think that is worth it unless I found a way to spend ~$5k more in order to make $20k/year and get stays towards platinum (whatever that means).


I don't htink you got enharu's point. 


Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Frequent Contributor
Posts: 317
Registered: ‎05-24-2013
0

Re: Chargesmart.com


parakleet wrote:

jenn_bar wrote:

enharu wrote:
The 5% for freedom and discover applies mostly at pumps only. I forgot which card was it but one specifically mentions at the pump only. The convenience store inside the gas station are sometimes coded as a grocery or convenience or a store of some sort, so it does not fall under the 5% gas station category.

If you are already spending 500 a month on groceries, don't bother using bcp for gift cards. You will reach the cap anyhow without having to pay any activation fee. Use another card instead.

AA = adverse actions. Banks sometimes take adverse action, such as closing account(s) and/or blacklisting the customer, if they feel you have abused the card rewards program.

1-2 thousand worth of GC each month should be fine in most cases, but it also depends on how much you are using on those cards. If those GC purchases make up for the bulk of your charges, then the chances of you running into issues with the banks are higher. Theres no clear definition of how much in GC/VR purchases is considered as abuse as well, so its kinda a YMMV situation depending on your profile and also luck.

I would be losing money if I used my CSP with only 1:! points. Same with the Freedom. My only other card is the Hyatt, which I don't think that is worth it unless I found a way to spend ~$5k more in order to make $20k/year and get stays towards platinum (whatever that means).


I don't htink you got enharu's point. 


Maybe not? I just would be then paying $240/year in convience charges if I used another card/did it another way. This way I am eliminating the convience charge and getting rewards in the process.

Super Contributor
Posts: 5,830
Registered: ‎02-23-2011
0

Re: Chargesmart.com

[ Edited ]

jenn_bar wrote:

I am afraid of getting AA'd then. This seems perfectly legal though.


For what you're doing, don't fret over AA.  

 

At the amounts you're utilizing, all things being equal, no issuer is going to care or inquire.  You're buying gift cards to pay rent to avoid paying the service fees while earning some rewards from your cards.  Perfectly legal, legitimate and completely above board.

 

I'll only add another option.  Remember the Amex Hilton?  There's a no fee version with 50k sign-up bonus which ears 5X at supermarkets.  You can use this when you've hit the $6k limit on your BCE or BCP.  

 

Just for paying rent, you'll get a free night at any Hilton per year.

 

PS - I think Enharu's point is that with the right card, you can increase your rate of return on spending.

New Contributor
Posts: 106
Registered: ‎05-06-2013
0

Re: Chargesmart.com


jenn_bar wrote:
Did any of you happen to see that Chase is waiving the $5 shipping fee for their gift cards online right now because they're not available at branches?

Could i use these with bluebird?

HOWEVER I wouldn't get 6% so scrap that.

Where can you buy visa reloads on the chase website?

Chase Sapphire Preferred $12k | Chase Freedom $7k | Chase United MileagePlus Explorer $15k | Chase Hyatt Visa $11.8k | Chase Amazon Visa $3k | Citi TY Premier $8.5k | Amex SPG $13.5k | Amex HHonors $5k | Discover IT $9k | BofA Cash Rewards $6k | BofA BB Rewards $2.7k | Banana Republic Visa $3k

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.