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/biz/ - Business & Finance

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760722 No.760722 [Reply] [Original]

What is stopping me from using a good credit card and purchasing items from myself to earn rewards that beat the transaction fees?

>> No.760752

>>760722
The highest earning credit card gives you 2% back, but it's a horrendous Citi card. The highest reward percentage on a usable card is the CapOne Quicksilver at 1.5% cash back.

Minimum credit card processing fees are about 3%, and that's if you're a major retailer. Smaller business get charged 5%+.

It is not possible to do what you're talking about.

>> No.760806

>>760752
Thanks what about credit card churning? Is it a viable option as in is it worth it to do for your credit score tap?

>> No.760808

>>760722
Its called "churning"

>> No.760900

The numbers just don't add up. Do the math and read thr details on those cash back/ rewards/ weird enhanced saver cards. It's a gimmick to entice card use and to get anything meaningful out of it you need to be churning through a gorrilian dollars a month. If you had a high enough credit limit to do that you wouldn't give a shit about the silly rewards.

That being said it's not a terrible idea to do a little transacting to pump up your credit history. Keep the highest monthly balance below around 1/3rd and pay off every month. Not that I advocate using credit much, but a good score can come in handy.

I like to pay my recurring bills with credit card auto pay arragements. I don't like service providers to have a line into my bank account so it's nice insulation, plus it's convenient as fuck. instead of a cable bill, a water bill, an energy bill, it just auto populates on my card and I pay it all with an account transfer. Haven't paid a dime of intrest and credit score just keeps climbing.