topic Re: Is there anything I SHOULDN’T charge? in Credit Cards

Is there anything I SHOULDN’T charge?

IodineNightSky — Fri, 14 Sep 2018 04:41:14 GMT

In rebuilding phase and working off baddies. In the meantime I recently got an Amex Delta, Discover IT, NFCU cashrewards and BofA cash rewards (secured) w/ limits ranging from 500-1.6k.

I spend a lot each month just running my life and small business. I know to get CLIs they want to see a lot of usage and PIFs which is the plan.

My question is whether there is anything I DON’T want to charge. For instance, will it look bad if I charge all my utilities, car insurance, etc., along with the typical stuff like gas, meals, groceries? If it truly makes no difference in what I charge I’ll just charge everything I can (so long as I don’t have to pay a fee to charge it) and then PIF a few days later before the statements cut. Really I could run 4K in purchases through a single 500$ limit card in a month if it would help me at CLI time.

But if the card companies look sideways at someone who is charging his car insurance and gas bill then I won’t do it.

Thoughts?

Re: Is there anything I SHOULDN’T charge?

NRB525 — Fri, 14 Sep 2018 04:53:43 GMT

I pay State Farm Insurance every month with one or another credit card. Utilities, cell phone. Everything I can. I detest cash and refuse to use my debit card for anything other than check deposits to checking.

The things to stay away from include any charges to a merchant who can be linked to you as related. This includes PayPal in some situations.

True spend, though is generally fine. AMEX not accepted everywhere and if you incur a processing fee, for things like rent, you have to judge whether your rewards offset it.

Re: Is there anything I SHOULDN’T charge?

UncleB — Fri, 14 Sep 2018 04:54:59 GMT

@IodineNightSky wrote:
In rebuilding phase and working off baddies. In the meantime I recently got an Amex Delta, Discover IT, NFCU cashrewards and BofA cash rewards (secured) w/ limits ranging from 500-1.6k.

I spend a lot each month just running my life and small business. I know to get CLIs they want to see a lot of usage and PIFs which is the plan.

My question is whether there is anything I DON’T want to charge. For instance, will it look bad if I charge all my utilities, car insurance, etc., along with the typical stuff like gas, meals, groceries? If it truly makes no difference in what I charge I’ll just charge everything I can (so long as I don’t have to pay a fee to charge it) and then PIF a few days later before the statements cut. Really I could run 4K in purchases through a single 500$ limit card in a month if it would help me at CLI time.

But if the card companies look sideways at someone who is charging his car insurance and gas bill then I won’t do it.

Thoughts?

I personally run everything I can through a credit card, as long as there's not a fee (and if there is a fee, as long as it is less than the rewards I get from using the card).

It's a great way of earning rewards, and if you're working with lower-limit cards some issuers respond well to high usage (as in, auto-CLIs). I found this to be true especially with Capital One.

Re: Is there anything I SHOULDN’T charge?

Anonymous — Fri, 14 Sep 2018 05:13:59 GMT

@UncleB wrote:

It's a great way of earning rewards, and if you're working with lower-limit cards some issuers respond well to high usage (as in, auto-CLIs). I found this to be true especially with Capital One.

I agree, if they give you a low limit they won't be too surprised if you charge many times the limit over the month, and they should like it as their risk is low because of the credit limit and you are generating nice swipe fees for them.

(Recycling credit limits during a month is only an issue if it clearly exceeds declared income (a hallmark of MS activity))

As others have said, just avoid transactions that charge a fee, either explicitly (e.g. some utilities will charge for paying with a cc) or, worse, transactions which are coded as a cash advance.

Re: Is there anything I SHOULDN’T charge?

Peteyglad — Fri, 14 Sep 2018 12:33:24 GMT

Like others have said I will charge everything as long as there is no fee. If there is a fee the rewards have to at least be equal to the fee.

Re: Is there anything I SHOULDN’T charge?

ChessChik47 — Fri, 14 Sep 2018 13:15:11 GMT

@IodineNightSky wrote:
In rebuilding phase and working off baddies. In the meantime I recently got an Amex Delta, Discover IT, NFCU cashrewards and BofA cash rewards (secured) w/ limits ranging from 500-1.6k.

I spend a lot each month just running my life and small business. I know to get CLIs they want to see a lot of usage and PIFs which is the plan.

My question is whether there is anything I DON’T want to charge. For instance, will it look bad if I charge all my utilities, car insurance, etc., along with the typical stuff like gas, meals, groceries? If it truly makes no difference in what I charge I’ll just charge everything I can (so long as I don’t have to pay a fee to charge it) and then PIF a few days later before the statements cut. Really I could run 4K in purchases through a single 500$ limit card in a month if it would help me at CLI time.

But if the card companies look sideways at someone who is charging his car insurance and gas bill then I won’t do it.

Thoughts?

I agree with what others have stated; just wanted to specifically call out the bolded line to suggest that you make sure a balance is reporting on at least one of your cards (or all of them or as many of them that you want) so you don't get hit with a FICO ding because all of your cards are reporting a zero balance. You can still PIF after statements cut and no pay interest as long as you pay it before your due date.

Re: Is there anything I SHOULDN’T charge?

redpat — Fri, 14 Sep 2018 15:24:11 GMT

Escort services and strip joints.

TGIF.

Re: Is there anything I SHOULDN’T charge?

601flyguy — Fri, 14 Sep 2018 16:17:04 GMT

"I’ll just charge everything I can (so long as I don’t have to pay a fee to charge it) and then PIF a few days later before the statements cut. Really I could run 4K in purchases through a single 500$ limit card in a month if it would help me at CLI time."

Do exactly that, it will definitely help. That is what I did when I was building. I ran major business spend through all cards. They all had low SL as I didnt have much credit history. In roughly a year, they grew to

DSCVR

1.5K - 14.8K

AMEX

500 - 13.5K

BoA

2.6K - 15.6K

CAP1

300 - 3.75K (lol)

Re: Is there anything I SHOULDN’T charge?

Anonymous — Fri, 14 Sep 2018 17:03:19 GMT

Gift cards or other cash like transactions such as paypal or venmo. Small amounts are okay, but I wouldn't send thousands of dollars every month to a family member via paypal.

Re: Is there anything I SHOULDN’T charge?

Kforce — Fri, 14 Sep 2018 17:15:54 GMT

@redpat wrote:
Escort services and strip joints.

TGIF.

I think entertainment is a cashback category on the Marvel Card.

Re: Is there anything I SHOULDN’T charge?

Anonymous — Fri, 14 Sep 2018 17:36:55 GMT

Another point, once the statement cuts with a balance, it makes no difference to lenders if you pay that balance right away or on due date, the smart thing to do is to hang on to your money in interest generating accounts through grace period, it makes no sense to pay a few days after statement date unless you don't trust yourself to not blow that money on something else.

Re: Is there anything I SHOULDN’T charge?

pipeguy — Fri, 14 Sep 2018 19:29:21 GMT

Only thing I would add is that I've read numerous articles listing things you should never put on a credit card - many of the articles list "disposable purchases" such as gas or groceries because they are basically used and gone - the caution is that if you fail to pay in full each and every month for each and every charge, any value you receive in cash back or discounts is quickly lost paying interest.

I fully understand that with solid discipline that you/anyone can pay in full each and every month - but I also know that the rebuilding and bankruptcy forums are full of stories where some end up with a ton of credit card debt. Just don't forget to budget your funds to cover your monthly charges is all I'm saying.

Re: Is there anything I SHOULDN’T charge?

pinkandgrey — Fri, 14 Sep 2018 20:05:12 GMT

I use credit cards for everything including all my bills. I mean why wouldn't you? As long as it won't hurt your utilization, I say it's money you have to spend anyway so why not get points/cash back? Plus, there's the old idea that credit cards are safer to use than debit...

Re: Is there anything I SHOULDN’T charge?

SouthJamaica — Fri, 14 Sep 2018 20:09:10 GMT

@IodineNightSky wrote:
In rebuilding phase and working off baddies. In the meantime I recently got an Amex Delta, Discover IT, NFCU cashrewards and BofA cash rewards (secured) w/ limits ranging from 500-1.6k.

I spend a lot each month just running my life and small business. I know to get CLIs they want to see a lot of usage and PIFs which is the plan.

My question is whether there is anything I DON’T want to charge. For instance, will it look bad if I charge all my utilities, car insurance, etc., along with the typical stuff like gas, meals, groceries? If it truly makes no difference in what I charge I’ll just charge everything I can (so long as I don’t have to pay a fee to charge it) and then PIF a few days later before the statements cut. Really I could run 4K in purchases through a single 500$ limit card in a month if it would help me at CLI time.

But if the card companies look sideways at someone who is charging his car insurance and gas bill then I won’t do it.

Thoughts?

No they like that stuff.

Re: Is there anything I SHOULDN’T charge?

jl4 — Fri, 14 Sep 2018 20:36:53 GMT

@NRB525 wrote:
I pay State Farm Insurance every month with one or another credit card. Utilities, cell phone. Everything I can. I detest cash and refuse to use my debit card for anything other than check deposits to checking.

This. I run everything through a handful of credit cards except some tax payments (because they're on payment plans). My checking account has like 6 transactions a month and two of those are direct deposits.

Re: Is there anything I SHOULDN’T charge?

Anonymous — Fri, 14 Sep 2018 21:25:17 GMT

@redpat wrote:
Escort services and strip joints.

TGIF.

Why not? LOL I personally think that credit card companies like customers that not not too uptight and get plenty of entertainment. Seems think these charges would be highly desired

Re: Is there anything I SHOULDN’T charge?

Anonymous — Sun, 16 Sep 2018 20:34:39 GMT

@Anonymous wrote:
@redpat wrote:
Escort services and strip joints.

TGIF.
Why not? LOL I personally think that credit card companies like customers that not not too uptight and get plenty of entertainment. Seems think these charges would be highly desired

I think it was a Tennessee Titans player who went to the strip club asked them to put 100k charge on his credit card and give him 100k one dollar bills. When the manager refused he punched him in the face. I wouldn't recommend doing that but to each their own.