I'm trying to decide how to use my 5% categories next quarter and could use some advice.
Looking at next quarter's 5% categories on my cards, it looks like Chase Freedom is gas and Kohl's. I don't have a long commute to work, so my gas cost is already covered by Sallie Mae (I usually stay ~ $200/month for gas). And I don't shop at Kohl's, so the Freedom will get SDed for the quarter unless....
Could I use the Freedom to buy one $500 gift card/month from a gas station? Then use the gift card for whatever comes up...basically a de-facto 5% card ($500 - $4.95 fee for the card)? Could Chase potentially flag this as MS behavior (even though I do not think it fits the strict defnition of MS)?
Using this strategy should net me ~ $60 for the quarter [($500 x 3 months x 5%) - ($4.95 gift card fee x 3 cards)]
@Dw4250 wrote:I'm trying to decide how to use my 5% categories next quarter and could use some advice.
Looking at next quarter's 5% categories on my cards, it looks like Chase Freedom is gas and Kohl's. I don't have a long commute to work, so my gas cost is already covered by Sallie Mae (I usually stay ~ $200/month for gas). And I don't shop at Kohl's, so the Freedom will get SDed for the quarter unless....
Could I use the Freedom to buy one $500 gift card/month from a gas station? Then use the gift card for whatever comes up...basically a de-facto 5% card ($500 - $4.95 fee for the card)? Could Chase potentially flag this as MS behavior (even though I do not think it fits the strict defnition of MS)?
Using this strategy should net me ~ $60 for the quarter [($500 x 3 months x 5%) - ($4.95 gift card fee x 3 cards)]
What's "MS behavior"? And why isn't this a good idea for new accounts?
Gardening since May 2015
I actually went around to see some gas stations if they sell 500 dollar gift card, i don't think i could find any that do. I was thinking of doing something since Discover and chase both have 5% gas this quarter coming up
While other forums may not take issue with MS, myFICO is the exception. We have partnerships and agreements with credit card companies and openly discussing a topic that goes against their policy is frowned upon.
If you have any further comments regarding MS, please PM a MOD.
~Lexie
@09Lexie wrote:While other forums may not take issue with MS, myFICO is the exception. We have partnerships and agreements with credit card companies and openly discussing a topic that goes against their policy is frowned upon.
If you have any further comments regarding MS, please PM a MOD.
~Lexie
Thanks Lexie! But -- can I just ask for more detail about what not to do? I had never heard the term before, and I have a good faith interest in not wanting to break a rule I don't yet understand!! For example, I do use my rewards card to refill a Starbucks card. Is that not okay?
@Anonymous wrote:
@ACG23 wrote:
@Dw4250 wrote:I'm trying to decide how to use my 5% categories next quarter and could use some advice.
Looking at next quarter's 5% categories on my cards, it looks like Chase Freedom is gas and Kohl's. I don't have a long commute to work, so my gas cost is already covered by Sallie Mae (I usually stay ~ $200/month for gas). And I don't shop at Kohl's, so the Freedom will get SDed for the quarter unless....
Could I use the Freedom to buy one $500 gift card/month from a gas station? Then use the gift card for whatever comes up...basically a de-facto 5% card ($500 - $4.95 fee for the card)? Could Chase potentially flag this as MS behavior (even though I do not think it fits the strict defnition of MS)?
Using this strategy should net me ~ $60 for the quarter [($500 x 3 months x 5%) - ($4.95 gift card fee x 3 cards)]
What's "MS behavior"? And why isn't this a good idea for new accounts?
Generally you don't want strange looking charges on accounts without much history. Spending $500+ at a gas station, while certainly possible, is somewhat unusual, and on a new card might well generate a fraud alert. Usually they will just ask you to confirm that you made the charge, but they could also ask what you were buying and why. Buying cash equivalents are often excluded from rewards categories in the T&Cs, so you don't want to be asked this question!
Yea ... I got my Discover card in June and with only a $750 limit and had a $550 purchase coming around November I decided to go to Rite Aid and buy myself a $300 dollar Amazon gift card so I can pay for part of the purchase in September and the rest in November. It got flagged and got decline 
This was also my first purchase over $200. Luckily they only asked if it was me and didn't ask what i was buying