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Senior Contributor
john398
Posts: 3,270
Registered: ‎01-19-2009

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

What about Breakfast? LOL I use my Chase Freedom for the 5% at restaurants every chance I get

Frequent Contributor
OnTheRebound
Posts: 418
Registered: ‎08-05-2009

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

Everytime this topic comes up my emotions run wild.

 

I have a simple question...

 

Why would Amex or any other lender issue a merchant account to a establishment that that they don't want you to shop at?

 

Hell, use it anywhere you want to. Just pay your bill on time and you won't have a problem. If they do take AA it's likely something else is going on besides the fact you bought a cheese berger at McD's.

 

We use our Amex everywhere it's accepted. Walmart, McD's, Dollar Store, State and Federal taxes, property taxes, attorney. I even used it to pay a speeding fine. Never got a phone call from Amex asking why I'm shopping at the Dollar store or why I used their card to pay taxes.

 

My hope is this myth dies. But, I know, inevitably, it will come up again.

Mine- Citi Diamond Preferred WMC $12K / Comenity Total Rewards Visa $2.5K / Citi Home Depot $5K / DW's, I'm AU on most- Amex BCP $12K / Chase Freedom Visa $11014.00 / PenFed Platinum Rewards Visa $6K / Citi Simplicity MC $4.4K / GE Lowes $10K / GE CareCredit $5K

"Four out of five voices in my head told me to "go for it". I went for it."
Established Member
ForumPheen
Posts: 40
Registered: ‎05-07-2013

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

Thanks for all the responses everyone. Amex is one of the cards I want to get in the future, so that little insight about them does help.

Knowing that it's mainly a myth for the majority of lenders is indeed settling.

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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

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?  


Total nonsense. Use the car for whatever your needs are.

 

:smileyhappy:




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New Contributor
mcf
Posts: 355
Registered: ‎02-25-2013

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

[ Edited ]

lol.. yeh they are watching all of us!! so never use it an adult store on the side of the interstate... fireworks a big no no.. fertilizer uht uhhhhh.. i sense a lot of paranoia..

 

 

And if they are watching well then i wanna priceline with shattner on it.. all i wanna do is use it for star trek conventions.. Hair piece stores and Star Trek toys hahaha.. sounds highly illogical.. m\/n

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Valued Contributor
indiolatino61
Posts: 1,429
Registered: ‎11-10-2012

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?  


This was a big myth with AMEX as well. All CCC make money with every swipe, so as long as you use their card and pay as agreed, where you use the card is irrelevant. This is just my opinion of course, I may be way off...:smileytongue:

 photo Logo-CreditCardCollection_zps2f177769.jpgWmart (TU): 802, Disc it (TU): 800, CKarma (TU): 767, AmEx (EX): 755, CSesame (EX): 710, Quizz (EQ): 778, myFICO (EQ): 770.
Oldest: AmEx: 26Y-2M, AAoA: 6Y-1M, Utl: 0.81%, 12/24 Inq: 5/15, Income: $99k, Garden: 03/30/2014. Updated 04/22/2014.
Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

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


indiolatino61 wrote:

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?  


This was a big myth with AMEX as well. All CCC make money with every swipe, so as long as you use their card and pay as agreed, where you use the card is irrelevant. This is just my opinion of course, I may be way off...:smileytongue:


Your spot on. :smileyhappy:




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
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Member
PersonalBanker89
Posts: 15
Registered: ‎05-11-2013

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

They want you to wear your card out, always pay on time, and never redeem your reward points.


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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

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


PersonalBanker89 wrote:

They want you to wear your card out, always pay on time, and never redeem your reward points.


kevin2222.jpg




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Super Contributor
enharu
Posts: 6,828
Registered: ‎02-27-2013

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


OnTheRebound wrote:

Everytime this topic comes up my emotions run wild.

 

I have a simple question...

 

Why would Amex or any other lender issue a merchant account to a establishment that that they don't want you to shop at? They have to issue it as long as the merchant abides by all federal and state laws, and whatever terms & conditions Amex has for merchants. Amex can't cherry pick. Otherwise, they'll get into all kinds of discrimination lawsuits regardless of whether that is their intent. The legal fees and time invested into those lawsuits are just going to be crazy even if they do win those suits. 

 

Hell, use it anywhere you want to. Just pay your bill on time and you won't have a problem. If they do take AA it's likely something else is going on besides the fact you bought a cheese berger at McD's.

 

We use our Amex everywhere it's accepted. Walmart, McD's, Dollar Store, State and Federal taxes, property taxes, attorney. I even used it to pay a speeding fine. Never got a phone call from Amex asking why I'm shopping at the Dollar store or why I used their card to pay taxes.

 

My hope is this myth dies. But, I know, inevitably, it will come up again.


I answered in red about the question you asked. Not related to the OP's topic about whether it is good or bad for you to use your Amex anywhere.

 

Amex use whatever and wherever you charge as an internal scoring method to match targetted promotions at you. Other lenders may or may not do this. This score is mostly for marketing purposes only.

In most scenarios there is also a DIFFERENT internal score that decides whether you get approved / declined for applications or any CLI requests.

 

To answer OP's topic again......nope it's not bad for you. use it as much as you can wherever you can. 

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), Discover IT (15k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k).

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