topic Re: High Spend on New Discover It in Credit Cards

High Spend on New Discover It

josh1 — Sun, 21 Oct 2018 18:00:12 GMT

So I was recently approved for the Discover It Student Cash Back card with a limit of $1,500. I really want to maximize the 2% back in the first year, especially with some larger purchases. I own my own business and I have a large expense coming soon of about $2,000 and would like to put it on the card, but am a bit worried if I charge that much in the first month they might be a bit suspicious. I can break the charges up to about 3-4 different charges, but still, I know some CC companies are a bit strict about things like this. Also, I will be making the payment through PayPal, but the recipient is in the UK which may also look a bit suspicious. I was wondering if anyone had any knowledge about this, and if so how can I reduce them thinking it is suspicious?

Re: High Spend on New Discover It

Shadowfactor — Sun, 21 Oct 2018 18:47:56 GMT

As long as you aren’t using PayPal to skirt the cash advance fees and they are legitimate transactions. I don’t see an issue with this at all. It’s a credit card and that’s it’s intended purpose is to be used.

Since you do have a lower limit, I would maybe recommend splitting that purchase in half. Charging a $1000. Let it post. Pay in full and then do the other $1000.

That way you don’t max the card out and still accomplish your goal.

If you have a small business, I would consider looking at a business card. Amex is a great place to start and they seem to be fairly easy to get approved for with not a lot of questions asked for startups.

Discover also just released a business card but If I remember correctly. It’s nothing special.

Re: High Spend on New Discover It

josh1 — Sun, 21 Oct 2018 20:41:02 GMT

Shadowfactor, yeah I'm not, just want that awesome cash back bonus. I know with AMEX if you spend close to your limit multiple times in the first month it might trigger a financial review. I know Discover doesn't really do those, but I have heard one story of someone who got their limit decreased because Discover thought they might be high risk.

And I've looked at some business cards, but none of them really excite me that much. Many of the good ones have annual fees and don't offer anything better than standard cards. Plus, I am not sure if I have enough revenue to be approved for one. Plus my income from my business is so irregular and fluctuations heavily from year to year.

I will probably split it up into $650 payments, so I can somewhat keep my utilization lower during the process. Thanks for the advice!

Re: High Spend on New Discover It

Shadowfactor — Sun, 21 Oct 2018 22:28:22 GMT

The Blue Business Plus from Amex is a great starter card if you want to get into points. No AF.

I got mine with 1K expected revenue. Amex doesn’t seem to care as long as you have a legitimate side business and acceptable credit. They could careless about personal charges on their business cards.

Different Amex cards have different underwriting but the BBP should be fairly easy to get and it’s a great card for no AF. I value MR points at a minimum of 2 cents. So basically 4% back for no fee. That’s hard to beat!

Re: High Spend on New Discover It

josh1 — Sun, 21 Oct 2018 23:21:21 GMT

@Shadowfactor, that sounds like a pretty good deal. Is redemption different on their business cards than with their personal cards?

Re: High Spend on New Discover It

Shadowfactor — Sun, 21 Oct 2018 23:23:51 GMT

No. Your MR points all pool together.

If you don’t plan on traveling or want to deal with point based systems. I would look elsewhere for a card.

Re: High Spend on New Discover It

josh1 — Mon, 22 Oct 2018 03:06:37 GMT

Perfect, thank you!