How do lenders view it when you only use their cards for reward categories? For example, what if someone only used a Sallie Mae card for 5% categories? Would they limit the opportunity for CLI because of that, would they take AA? Would love to hear some stories & experiences with this.
@Anonymous wrote:
If they didn't want you to do it, they shouldn't have offered it.
Yes, that is true, though the same could be said about high credit limits and sometimes they take those back if you do something they're not happy about. Just trying to get a feel for how to approach it.
I'm not sure how they view it but personally I only use SM for Target + Wal-Mart (codes as grocery) and Nook purchases. Haven't had the card very long, fourth statement cuts in a couple days but if its an issue they haven't made it known 
Not much incentive for me to use the card otherwise. No intro APR period and its 20.9% so if I ever chose to carry a balance it definitely would not be on SM. If its an issue later on down the line Barclay is free to close the card. I love the rewards but Im not married to it or changing my habits. This is all business
@Anonymous wrote:
@happypill wrote:How do lenders view it when you only use their cards for reward categories? For example, what if someone only used a Sallie Mae card for 5% categories? Would they limit the opportunity for CLI because of that, would they take AA? Would love to hear some stories & experiences with this.
I do not believe it makes any difference to them, they just want your business. I've personally never heard a story of being denied anything because of only using a card for reward categories. That's how I use my cards anyway, especially for the Freedom and Discover rotating 5% categories. I always check my rewards percentages before making purchases to make sure I'm getting the most cash back I can
The only time this becomes an issue is if people start buying lots of GCs in reward categories on a card that does not have a cap (or a very high cap) on spend in rewards categories. Chase has named this as something they will be on the look out for. However, for normal spend in bonus categories it is a complete non-issue. I only use my freedom for items in bonus categories.My Amex BCP was only used for grocery spend, my chase hyatt card is only restaurant spend (at leats until I hit signup bonus).The lender will make more than enough on all your swipes.
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