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Posts: 1,599
Registered: ‎11-10-2012
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Re: Discover question. Is this a bad thing?

enharu wrote:
Ok so while messing around witth the discover app on iPhone, I noticed that there's a send money feature, powered by PayPal.

The sweet benefits of this feature is that I can send money, using my discover card, to someone, who doesn't have to be a discover member. Best part of it all is that both sender and receiver are not subject to 3% fee that PayPal usually charges when the payment is funded by a credit card.

There is a limit of 1000 per month, and the transfer is charged at regular purchase apr, not as a cash advance. Cashback is earned on transfers!!!

Now in my mind, I can transfer this to my girlfriend, and pay the 1000 off immediately. If I do this each month, its effectively 120 in cashback + more usage on my discover card. The 120 alone is more than what BofA gives as bonus for paying on time for the better balance card.

However my main concern is that as sweet as this pseudo manufactured spending sounds, will it affect my CLI chances? Or will it affect anything negatively?

What about cash-overs at grocery stores as well?


Manufactured spending is not looked upon kindly by ANY lender. Just like buying gift and reloadable cards to get rewards, all these kinds of shinanigans can only cause you trouble in the long run. 

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