Here's the deal. I have 3 new cards...Barclay Rewards MC, Amex Bce & Discover It. I use my Barclay to pay my utility bills, car insurance, cable tv and gas which adds up to about $700.00 per month. I think Barclay will be satisfied with my usage..(anyone that thinks it's too little for Barclay to accept, let me know if I should be spending more)
The problem is my Amex BCE and Discover It card. I am a "cheap skate" and try not to buy anything if I don't need it. I do own my own business and have an online merchant gateway processor where I can charge and accept Visa, MasterCard, Amex & Discover....When I charge through my online payment gateway, It goes right into my bank account the same day if before 3pm, otherwise the money is in my bank account the next day.
I was thinking of charging my Amex Bce with my credit limit of $1,000.00 about $350 a month and charging my Discover It (8k credit limit) about $500.00 a month. (Kinda of like a cash advance) I get charged about 3% of whatever i put through my credit card processor. Example,if I charge $500....Amex or Discover takes only about $15 dollars of the $500.00 automatically.
Is this a good idea? Or is it a bad one? Or Should I allocate my cable bill to Amex (instead of using my Barclay) and allocate my Discover It for let's say my car insurance? Experts, please give me your advise...I just want to satisfy Barclays, Amex and Discover that I got this past month.... Thank you
$600 
$6500 
$30k 
16k 
12k VSiggy
This sounds like it could be bad news. First, you would have to report all of these charges next year as income, so you'll be getting taxed. Secondly, it sounds a lot like MS in a way. I'll let someone else chime in, but running your own credit cards through your own business for the purpose of increasing credit card spend sounds shady to me.
@Vegas247 wrote:Here's the deal. I have 3 new cards...Barclay Rewards MC, Amex Bce & Discover It. I use my Barclay to pay my utility bills, car insurance, cable tv and gas which adds up to about $700.00 per month. I think Barclay will be satisfied with my usage..(anyone that thinks it's too little for Barclay to accept, let me know if I should be spending more)
The problem is my Amex BCE and Discover It card. I am a "cheap skate" and try not to buy anything if I don't need it. I do own my own business and have an online merchant gateway processor where I can charge and accept Visa, MasterCard, Amex & Discover....When I charge through my online payment gateway, It goes right into my bank account the same day if before 3pm, otherwise the money is in my bank account the next day.
I was thinking of charging my Amex Bce with my credit limit of $1,000.00 about $350 a month and charging my Discover It (8k credit limit) about $500.00 a month. (Kinda of like a cash advance) I get charged about 3% of whatever i put through my credit card processor. Example,if I charge $500....Amex or Discover takes only about $15 dollars of the $500.00 automatically.
Is this a good idea? Or is it a bad one? Or Should I allocate my cable bill to Amex (instead of using my Barclay) and allocate my Discover It for let's say my car insurance? Experts, please give me your advise...I just want to satisfy Barclays, Amex and Discover that I got this past month.... Thank you
IMO, when something you are about to do with credit sounds "not Kosher," then it most likely isn't. As the previous poster noted, MS (manufactured spending) is looked down upon by most, if not all lenders. I say it's not worth it. The best of luck to you.
@msf12555 wrote:This sounds like it could be bad news. First, you would have to report all of these charges next year as income, so you'll be getting taxed. Secondly, it sounds a lot like MS in a way. I'll let someone else chime in, but running your own credit cards through your own business for the purpose of increasing credit card spend sounds shady to me.
Absolutely a correct answer...it's not worth it....having to pay extra for taxes...I will just allocate some bills to Amex, and some through Discover, and will not give all the love to Barclay just because I am spooked about what some of the posts say here that Barclay CLD for not using their card for all expenses......This is the right thing to do! MyFico truly does have great members with great advice. msf12555 you nailed it perfectly with you comment....thanks to you indiolatino61....also thanks for telling me what MS meant.
I think that you're making the right choice. Also, if Barclay was going to take some action on your account, I can't imagine them taking a different action based on whether you were putting 400 a month on your card versus 700. I'm certainly not a Barclay expert, but that's just a guess. I think more than anything that they don't like seeing a ton of new inqs and a ton of new accounts and their card getting abandoned.
@newUser0 wrote:For me it personally depends on what business you do. For example, if you need some cash for business and you sure that you would make some profit to outset merchant fees and tax. It may be worth having the cash for very less interest. Although, low charges like you mentioned may not be effecctive usage.
That too is a great answer.....but like msf12555 said, just using the Barclay card consistently, and not having a lot of new accounts and inquiries (I'm gardening anyway) should be okay with Barclay. The difference of spending $700 and $400 shouldn't make a difference.....
