Spending on cards

[Anonymous]

When people talk about running $xxxx per month through this card or that card, why is that done? If it gets paid off before or once it posts to the card, why not use a debit card? Does the lender keep track and use that for CLI? Or what? Id like a better understanding.

[OmarGB9]

Mostly for racking up rewards, be they miles or cashback. But yes, also to show lenders usage and show a need for a CLI and/or APR reduction.

[Anonymous]

For me it's for the rewards. We have a large family and spend thousands on everyday expenses each month. Until recently, we always paid with cash/debit. Then my sister in law was telling me about her family's 10 day Hawaiian vacation completely paid for with miles and points. They put all their expenses on the SPG and pay it off each month. Who wouldn't want a free vacation? After hearing that I was sold.

[Man-Of-Steel]

It's all about the rewards for me as well. I run everything through my cards now including my rent (which I'm still a bit shocked that I can pay online with my complex now fee free). I use my credit cards like debit cards and only use my actual debit card every blue moon to withdraw cash from the ATM.

[longtimelurker]

---

@Anonymous wrote:
When people talk about running $xxxx per month through this card or that card, why is that done? If it gets paid off before or once it posts to the card, why not use a debit card? Does the lender keep track and use that for CLI? Or what? Id like a better understanding.

---

As others have said, mainly for the rewards, but ccs typically have extra protections, and some additional benefits like extended warrenty (and in some cases price protection).    Also, using a cc allows you to carry a balance if you find you need to, whereas with a debit card the cash is gone.

And yes, of course the issuer keeps track of how much you spend on the card, that allows them to segment you as a customer for all sorts of purposes including retention offers.

[Anonymous]

Thank you all for your responses. I am eagerly learning this credit card game and how to play it correctly. Hubby and I get 1% back on all our purchases with the paypal debit card so it will be an interesting transition to a credit card. We'd solely be using it in hopes to get better C

[Anonymous]

*CLI or APR reductions.

[OmarGB9]

One other thing to mention is the fraud aspect of it. With a debit card, if there's fraud, it's a lot harder to deal with since it's your OWN money and the bank isn't so keen on helping you out; with a credit card, it's the bank's money, so they're more likely to be proactive and help out and usually catch fraud right away.