Is My Idea For Getting Target Redcard CL Increase (and Eventual Mastercard) Genius or Awful?

[JMGWriter]

I got approved for Target Redcard, only $300 limit though. Still, it's another unsecured card for my thin file so I'll take it. 

I've seen some posts on here talking about getting dramatic RedCard CLI and eventual Mastercard within 12 months by spending up to the card limit, immediately paying off as soon as it posts the next business day and then spending again, rinse, repeat. So you might only have a $300 limit but could spend much more than that in one month with frequent payments.

So my idea is to use the RedCard's 5 percent instant savings on other store gift cards and then list them on eBay. I do some eBay listings on the side already, and have an account with good feedback already established. I regularly see Starbucks gift cards for $15 selling for like $13. People will take any savings they can get, even if it's only a couple dollars.

Step One: Buy $300 in random gift cards, opting for smaller amounts to reduce risk like the $15 Starbucks card. Save 5 percent instantly thanks to RedCard discount. Total cost $285 or so.

Step Two: List cards on eBay and yes, lose a bit of money, but hopefully not more than 5 to 10 percent, and again, I'd be doing the smaller amounts where the final auction price tends to not have that big of a gap to the value of the gift card. eBay fees will also be less on lower priced final auction values.

Step Three: Use eBay revenue to pay off the $285, fully aware that I will likely have to chip in some of my own money to pay it off if there is a bigger gap between me purchasing the gift cards and what the auction winners pay minus the fees.

Step Four: As long as I'm not losing a huge chunk of money with each round, I'm willing to invest some personal funds to repeatedly buy up to $300 in gift cards, sell them on eBay right away, pay off the Redcard balance right away and do this again and again. If I do this cycle 5 times in one month, Target's bank will see that I am spending $1500 a month on a store card with only a $300 limit and might consider a CLI sooner rather than later. 

Step Five: If I get an increase to $500 or $900 or whatever, keep it going, again being fully aware that I am sacrificing some extra personal cash to make up the gap in order to get my RedCard limit to go up as fast as possible, with the idea of eventually getting to that MasterCard. which after a year would hopefully have a line of at least a few thousand.

So, does this sound like something worth trying a couple times just to see how it goes, or am I wasting my time and possibly money?

For what it's worth:

Credit Karma TU 694, EQ 687

Discover It Secured $300

Cap One Plat Unsecured $300

Best Buy Rewards Visa Gold (the annual fee one) $1000

Target RedCard $300

I pay off all balances in full each month.

Had some negatives and a charge off but those are all cleared up, paid off, fell off, or otherwise gone. Only the entries above remain.

[Brian_Earl_Spilner]

Discount doesn't apply to gift cards. Ebay fees are 12.9%. target increases and upgrades are pretty random. Nobody has found a pattern.

[FinStar]

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@JMGWriter wrote:

So, does this sound like something worth trying a couple times just to see how it goes, or am I wasting my time and possibly money?

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OP - some folks have tried something similar in the past without success. The last bolded part of your statement above is key. 

As mentioned upthread, CLIs (let alone MC upgrades) are not something that have been pinned down to exact science.  Why not use the card organically? Let it report monthly and PIF (or however often you cycle your card), update your income monthly and see if that fares better than losing $$$ on a monthly basis -- with no guarantee of a CLI or the MC upgrade.

[TattnallTrio]

Honestly, Target isn't worth the drama! Let's look at a few things here from my perspective. 

I "got in trouble" with Target for making too many payments and I was subjected to an automatic 10 day hold unless I called in and got it manually released by either the rep looking up the receipt and seeing that I paid with cash or debit in store, or by conference calling my bank to verify it cleared. I buy a little and pay a little and so long. 
I will buy Chick Fil A gift cards and I do get 5% off with the red card.

I don't think using the card like crazy (as you described in the post) will do any better for increasing your odds of a CLI than just using it for normal use and keeping your overall credit history in good standing. 
My scores are in the 680-715 range and I am still at $600 with Target. I got one increase from $300 to $600 and that's it. I was told my account has a "watch code" on it from the payment thing a few years back.

Even Ulta upgraded me from a store card to a MasterCard but Target hasn't. 
Lastly, there's no benefit or prestige to having a Target MC. Some people that have been upgraded don't get cash rewards outside of Target. Others do. 
As a friend, why not concentrate on another Goal card and make it great?