Large Purchases deemed risky?

[HeavenOhio]

I pay most of my tax bills on credit cards. You're charged a fee, but that's because governments don't want to take on transaction fees like most merchants do. Because most of the fee is offset by rewards, I don't consider it to be a big deal.

I don't think a $1,000 purchase on a $3,000 limit is unreasonable. Just be prepared to make a payment to bring your utilization back in check. If you can work this out so it happens mid-cycle, so much the better.

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

I do this too, and never have any sort of issue with providers. I actually just met a minimum spend bonus by paying my half year property tax.

To the OP; I've made huge purchases (75% of cl) immediately after opening a line with a new company and after holding a line for a long time. I've never had an AA, but do make sure to pay these off either just before or after a statement cuts. My spending power with my primary card provider is high enough that I don't think they view me as remotely risky. I'm sure some providers may respond negatively to these habits, but the prime vendors seem to be prepared.

---

Thats good, i know when i was young and dumb i got a subprime card thinking thats what they all were and in this rebuild i have stuck to more prime lenders (i know cap1 is on the verge, but no AF or other weird fees)   So it very well could be that i just havent had enough exp with prime lenders yet to know.  I really appriecate all the helpful posts on this so far.

---

I'm definitely a little more skeptical of big purchases with Cap1 and Barclays, for example. I've got cards from each at the moment, and wouldn't be entirely surprised if they responded negatively to my regular spending. Fortunately, I'm through the bonuses on each and can cool things off for the forseeable future.

AMEX and Chase have both been really great about it. My wife and I were remodeling a house the first year we each had Chase cards and used them agressively. I pushed the limit on my $500sl Freedom to $6000 that year, often times maxing and paying down in the statement period. After applying for a CSP the next year, I was able to put a 90% of cl business purchase on my card. Finally, AMEX will basically let me spend anything I ask for. I checked my spending power on one card before paying a business expense of $50k and saw that they would let me spend $100k on that card without getting concerned. Other cards are higher, and my personal card is quite a bit lower.

If it helps, I've also carried some smaller balances on 0% cards to float unexpected expenses and avoid the sale of assets or dipping into savings. Discover seemed unconcerned that I was carrying 75% utilization after a car repair and gave me an auto cli after I paid it off out of my regular cashflow (not minimum payments.) I'm pretty sure that was my first purchase with Discover, so I think you could call them reasonably insensitve to that.

The word of caution I would tend to give is that my scores are high enough to be of no short term concern to me, I'm not interested in borrowing money in the next 5 years, and I'm not in a situation where I would miss a payment. If you're charging a large purchase to buy time, you better be absolutely sure you can pay for it regardless of other circumstance. Paying interest will destroy the marginal value of a sign up bonus, and pushing your score lower through a missed payment would take a long time to recover from.

[Anonymous]

---

@Anonymous wrote:

---

I'm definitely a little more skeptical of big purchases with Cap1 and Barclays, for example. I've got cards from each at the moment, and wouldn't be entirely surprised if they responded negatively to my regular spending. Fortunately, I'm through the bonuses on each and can cool things off for the forseeable future.

AMEX and Chase have both been really great about it. My wife and I were remodeling a house the first year we each had Chase cards and used them agressively. I pushed the limit on my $500sl Freedom to $6000 that year, often times maxing and paying down in the statement period. After applying for a CSP the next year, I was able to put a 90% of cl business purchase on my card. Finally, AMEX will basically let me spend anything I ask for. I checked my spending power on one card before paying a business expense of $50k and saw that they would let me spend $100k on that card without getting concerned. Other cards are higher, and my personal card is quite a bit lower.

If it helps, I've also carried some smaller balances on 0% cards to float unexpected expenses and avoid the sale of assets or dipping into savings. Discover seemed unconcerned that I was carrying 75% utilization after a car repair and gave me an auto cli after I paid it off out of my regular cashflow (not minimum payments.) I'm pretty sure that was my first purchase with Discover, so I think you could call them reasonably insensitve to that.

The word of caution I would tend to give is that my scores are high enough to be of no short term concern to me, I'm not interested in borrowing money in the next 5 years, and I'm not in a situation where I would miss a payment. If you're charging a large purchase to buy time, you better be absolutely sure you can pay for it regardless of other circumstance. Paying interest will destroy the marginal value of a sign up bonus, and pushing your score lower through a missed payment would take a long time to recover from.

---

I have been using the AZEO method since i got my cards.  PIF and i left 10 bucks on one card so my util has been >1% for the last few months. I dont want to have debt after being debt free (other than mortgage for 10+ years)  I'm working my way to the BCE my goal card with a spend bonus so i'm just figuring out how to handle that.  I still have a low income at this moment, but i'm working on that as well. 

[Anonymous]

---

@wasCB14 wrote:

---

@Anonymous wrote:

---

@wasCB14 wrote:

The nature of the purchase may also matter. On the first day I got one of my cards, I spent about $4k on estimated income tax payments. I expect that would raise fewer red flags (as far as the risk of unathorized use or default) than, say, $4k on jewelry.

---

I would think the opposite is true.  Charging your taxes on your  cards would seem desperate to me.  Doesn't government charge fees for charge cards.   4k on an engagement ring is on the low side.  I am guessing it is pretty common for people to spend 5 to 10k on a ring that they put on their cards.  

---

I paid about $80 in fees on that to payment processors, but the transactions (federal and state) satisfied most of the minimum spend I needed for a large travel bonus (worth about $800).

Paying taxes by CC is fairly common among bonus chasers. Some desperate people may also do it, but I'm not sure how many of them wouldn't just set up a payment plan with the IRS.

---

I guess if you don't have a lot of everday spend.  Paying 80 dollars in fees seems excessive.  My day care provider charges 1.9 percent to charge their tuition.  As the best I could get would be is 2.05 with Barclays it doesn't seem worth the hassle.  Even though it is $1450 a month.  I didn't realize you could pay your car insurance with credit card for no fee.  

I spend 2k+ a month just on groceries, gas, restaurants, beer, clothes and toys so I don't need to do this. Are you doing multiple bonus chasing in the same month?  

Anyway I don't think they really care what you spend the money on.  I mean the idea is for you to get in debt so you pay them interest charges.  Jewelry, Electronics, Vacations and household appliances are probably their bread and butter.  

[HeavenOhio]

The tax bill I paid last week was $1,689.56. The convenience fee was $42.24. 1.5% rewards on the taxes and fee amounted to $25.99. At that point, I didn't feel put out by the fee as I paid with the card for the convenience. Had I had a 2% rewards card, the rewards would have amounted to $33.63.

[wasCB14]

---

@Anonymous wrote:

---

@wasCB14 wrote:

---

@Anonymous wrote:

---

@wasCB14 wrote:

The nature of the purchase may also matter. On the first day I got one of my cards, I spent about $4k on estimated income tax payments. I expect that would raise fewer red flags (as far as the risk of unathorized use or default) than, say, $4k on jewelry.

---

I would think the opposite is true.  Charging your taxes on your  cards would seem desperate to me.  Doesn't government charge fees for charge cards.   4k on an engagement ring is on the low side.  I am guessing it is pretty common for people to spend 5 to 10k on a ring that they put on their cards.  

---

I paid about $80 in fees on that to payment processors, but the transactions (federal and state) satisfied most of the minimum spend I needed for a large travel bonus (worth about $800).

Paying taxes by CC is fairly common among bonus chasers. Some desperate people may also do it, but I'm not sure how many of them wouldn't just set up a payment plan with the IRS.

---

I guess if you don't have a lot of everday spend.  Paying 80 dollars in fees seems excessive.  My day care provider charges 1.9 percent to charge their tuition.  As the best I could get would be is 2.05 with Barclays it doesn't seem worth the hassle.  Even though it is $1450 a month.  I didn't realize you could pay your car insurance with credit card for no fee.  

I spend 2k+ a month just on groceries, gas, restaurants, beer, clothes and toys so I don't need to do this. Are you doing multiple bonus chasing in the same month?  

Anyway I don't think they really care what you spend the money on.  I mean the idea is for you to get in debt so you pay them interest charges.  Jewelry, Electronics, Vacations and household appliances are probably their bread and butter.  

---

I don't usually have multiple bonuses going on, but that may change.

I'm considering BofA Travel 2.625% to replace SPG when the card and/or point value get overhauled and likely nerfed. I'd happily pay a 1.9% fee to use a card (though I don't know what sort of hassle you face, exactly).

Car insurance will depend on the company. Mine charges no fee if I pay in a lump sum.

[Anonymous]

---

@Anonymous wrote:

---

@mitchblue wrote:

Last couple of years I've used a CC to pay off my property taxes.. Never had an issue. But I usually don't pay both Winter and Summer at the same time. Not that it would matter.

---

I'm actually considering using one of my CC's to pay off the last $90 or so of an old doctor's office bill that dates back to a period when I didn't have insurance because I lost most of my benefits after being put on part-time/"occasional" status. And the first charge I put on my Discover IT was for my insulin prescription (I'm a type II diabetic) and related supplies, which amounted to some $200 after insurance coverage. So there's that.

---

Sorry to be waayy off topic here but you state you paid $200 for diabetic prescription and supplies WITH insurance?  Almost all of the pharmaceutical companies offer prescription savings cards for diabetic meds to limit your copay to $25 or $30.  Just Google the drug name.  It is not income based.  Gotta save whenever you can....

[zerbherb]

its risky if you make minimum payments....

Also help i put 12k on my other chaase card earlier. Before putting 4k on my second card for a computer

[Anonymous]

---

I guess if you don't have a lot of everday spend.  Paying 80 dollars in fees seems excessive.  My day care provider charges 1.9 percent to charge their tuition.  As the best I could get would be is 2.05 with Barclays it doesn't seem worth the hassle.  Even though it is $1450 a month.  I didn't realize you could pay your car insurance with credit card for no fee.  

I spend 2k+ a month just on groceries, gas, restaurants, beer, clothes and toys so I don't need to do this. Are you doing multiple bonus chasing in the same month?  

Anyway I don't think they really care what you spend the money on.  I mean the idea is for you to get in debt so you pay them interest charges.  Jewelry, Electronics, Vacations and household appliances are probably their bread and butter.  

---

I have paid property taxes to meet sign up bonuses; I actually did so this month and at the beginning of the year. Property tax was the primary reason I did a major app spree this time of year. I've met 5 spend bonuses of 3k or higher in the last 45 days.

[pizza1]

---

@Anonymous wrote:
I don't think so, but many people here do. Basically two schools: a) go gently so they learn to trust and b) spend as you mean to spend.

If you are frequently putting large charges on a card, might as well do it straight away. After a series of small charges, a large one might appear suspicious anyway.

Most of my new cards I put $1000 to $2000 as my first charge. Never had an issue

---

I agree LTL...

When I first got approved for Chase Amazon Visa 6mo ago, the very first charge I did was online and paid my rent $1100 right off the bat. Went thru without a hitch. All of my majors cards have seen charges from $1.00 to $1800, and everything in between.