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Contributor
Posts: 148
Registered: ‎05-07-2013
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Myth or Truth: Paying for Lunch on a CC Is Bad for You?

**Do point me in the right direction should a similar thread already exist**

 

I'd like to either confirm or debunk the myth that the kind of purchases you make on your credit card can and will have a negative impact.  For instance, I was once told long ago that using my credit card to pay for lunches at various fast food restaurants on a day to day basis could harm my account and bar me from credit line increases and etc.  Or using a credit card to make small purchases under $5 will hurt me.

 

Is this true?  


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Valued Contributor
Posts: 2,111
Registered: ‎07-29-2011
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Re: Myth or Truth: Paying for Lunch on a CC Is Bad for You?

I use my credit cards for everything.   I almost never use cash.   Even though I have $100 in my wallet, it just sits there, unused.... not even for small transactions.  Its kind of an emergency fund.

EX:694 TU:744 EQ:777
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Community Leader
Senior Contributor
Posts: 30,010
Registered: ‎02-07-2013
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Re: Myth or Truth: Paying for Lunch on a CC Is Bad for You?


ForumPheen wrote:

**Do point me in the right direction should a similar thread already exist**

 

I'd like to either confirm or debunk the myth that the kind of purchases you make on your credit card can and will have a negative impact.  For instance, I was once told long ago that using my credit card to pay for lunches at various fast food restaurants on a day to day basis could harm my account and bar me from credit line increases and etc.  Or using a credit card to make small purchases under $5 will hurt me.

 

Is this true?  


Welcome to the forum 

CC companies don't care how you spend it just as long as you spend it and pay them lol

This point should be stressed more here an app spree should not be encouraged because its not for every profile
A thick file will support more apps at one time while a thin file may see negative reaction to this process

IMHO 4+ at one time is to many for a new file and it should be kept to 1-3 a year but we get caught up sometimes in seeing the little wheel spin and the words approved
Established Contributor
Posts: 635
Registered: ‎07-29-2010
0

Re: Myth or Truth: Paying for Lunch on a CC Is Bad for You?

Use your cards how you wish. Make the payments. The end.

 

If a CCC doesn't like that you shop at Walmart or eat lunch and McDonalds, are they really worth your time? Probably not. Find another bank that doesn't care.

 

Some purchases may trigger something, like paying taxes or paying for a lawyer on a credit card. Stuff like that can concern the banks that you are having financial or legal issues. And that kind of makes sense. But otherwise, just live your life.

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Established Member
Posts: 21
Registered: ‎05-14-2013
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Re: Myth or Truth: Paying for Lunch on a CC Is Bad for You?

Gotta get those rewards points for dining. Use CCs for breakfast, lunch, and dinner!

Senior Contributor
Posts: 4,000
Registered: ‎10-02-2012
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Re: Myth or Truth: Paying for Lunch on a CC Is Bad for You?

+1 banks reward you for using them when dinning out. so yeah its a myth


Banking with Citi Bank & HSBC, Age: 21
No Credit Cards(Filed current CCs), No Mortgage, No Auto Loan. Starting Fresh.
Filed & Signed Chapter 7 Bankruptcy 03/29/16, 341 Meeting 05/03/16, Discharged --/--/--
Starting scores as of 03/30/16 EX FICO 452, EQ FICO 442, TU FICO 449
Current scores as of 04/27/16 EX FICO 455, EQ FICO 450, TU FICO 441, Gardening Since 01/01/16
Frequent Contributor
Posts: 415
Registered: ‎05-23-2012
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Re: Myth or Truth: Paying for Lunch on a CC Is Bad for You?

I think credit card companies could care less if you use their cards for fast food.  One of the Chase Sapphire commercials even has dad taking the kids out for burgers and cokes, to tout the 2 points on dining and travel.  The only purchases that might raise red flags for them might be huge medical expenses, especially if those expenses were coupled with you only making the minimum payments.  Its really more your payment history and pattern that they look at.  Pay your bill on time and in full (or if not in full pay a good chunk of it) and the card issuers are pretty satisfied.

Valued Contributor
Posts: 2,489
Registered: ‎01-22-2012
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Re: Myth or Truth: Paying for Lunch on a CC Is Bad for You?

Some lenders such Amex will assign each  transaction a score based on what it is. For example a charge coming from a high-end luxury restaurant will be assigned a higher transaction score than eating at Denny's.

 

I don't think they'll AA you for too many low-scoring transactions, but it does help them to better profile you for targeted offers and invitations.

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New Member
Posts: 11
Registered: ‎05-14-2013
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Re: Myth or Truth: Paying for Lunch on a CC Is Bad for You?

That's correct, but Amex is the only one that I know of that does this. I avoid questionable purchases with Amex being that they can be prejudice against certain stores. I even avoided fuel purchases until I knew that Amex didn't care about that. Amex is weird, but worthwhile at the same time.

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Established Contributor
Posts: 911
Registered: ‎12-25-2010
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Re: Myth or Truth: Paying for Lunch on a CC Is Bad for You?

Not only is it not discouraged, my US Bank Siggy has both a fast food, and separate restaurant cash back reward category...

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