Paying off your monthly bill with another credit card to earn more points?

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Okie21
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Paying off your monthly bill with another credit card to earn more points?

Postby Okie21 » Wed May 08, 2013 4:47 pm

I was curious if any of you had ever done this. For instance, I have a Cabela's store card VISA that I use a lot and simply redeem my points for future purchases. I was considering paying my Cabela's bill with another credit card, then paying that card's bill through my checking account, thus I would net another 1% cash back.

Unless this type of thing is not allowed, I would think you could do this with a chain of 3 or more credit cards and wind up saving some money. Any thoughts or experiences on this?


Bksuper
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Postby Bksuper » Wed May 08, 2013 5:40 pm

Paying your bill with another credit card will not earn you more points, because it is not treated as a purchase (where credit issuer gets swipe fee and interchange from merchant). It will either be treated as a balance transfer, which may or may not incur a fee to you (some companies will give you a free balance transfer when you open the account, but it usually is a 3% fee),or a cash advance (which has a fee and interest from day-of). Usually only net purchases are eligible for cash back or points.
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Okie21
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Interesting......

Postby Okie21 » Thu May 09, 2013 11:25 am

So if I used a revolving credit card to pay a credit card bill, it would not be treated like a regular bill pay?(ie. utility bills). so the merchant services company for my debit bank card would get their swipe fee if i paid my credit card bill with that, but if i paid one credit card bill with another credit card, the issuer of the card i paid with would NOT get their swipe fee?

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Z06Biker
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Postby Z06Biker » Thu May 09, 2013 3:33 pm

Yes, that is what Bksuper was saying.

The better question is, what credit card nowadays allows you to pay off the balance with another credit card? As far as I know, other than a balance transfer, the only method of payment accepted is a physical check, or an online payment via bank checking/savings account.

Otherwise, you could theoretically "daisy chain" an unlimited amount of credit cards to pay off one another, and only ever have to pay one (1) card with real cash at any given time.
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Okie21
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Postby Okie21 » Thu May 09, 2013 7:09 pm

Ok I'm glad I asked. Ya I guess I can see why the CC companies dont want to allow that, but its really the exact same thing as a balance transfer as far as the "daisy chain" effect. My whole idea was a way to get more points, not to put off paying your balance. Until this week, I'd only ever had one credit card, so now that I have more than one I thought it would be fun to get some extra points that way. Thanks for the info!

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Postby silver6054 » Fri May 10, 2013 12:09 am

Okie21 wrote:Ok I'm glad I asked. Ya I guess I can see why the CC companies dont want to allow that, but its really the exact same thing as a balance transfer as far as the "daisy chain" effect. My whole idea was a way to get more points, not to put off paying your balance. Until this week, I'd only ever had one credit card, so now that I have more than one I thought it would be fun to get some extra points that way. Thanks for the info!


There are ways that take some work, if you have the right type of cards. The basic idea is to buy "cash equivalents" with a credit card at a place that gives you a decent discount for that card. So this includes things like Visa/MC gift cards at supermarkets and drug stores, or things like Vanilla Reload (mainly at drug stores). There is a fee, usually $3.95-$5.95 for a $500 card, so you need to do better than 1%, and 5-6% cards are best. Then you take these things and either directly load them on to an Amex Bluebird card (Vanilla) or go to Walmart and get it done there (gift cards). Then use bluebird to send payment to the target credit card company.

You can also buy other types of card at supermarkets etc, and use them to buy money orders, deposit this into your bank and pay normally. These methods allow you to get credit card rewards on all types of payment, but a) take some time, and b) potentially can get your credit card shut down if your issuer decides that this is bad!

Tomson
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Postby Tomson » Fri May 10, 2013 8:21 pm

Hey there,

How about this, does paying a credit card with a different credit card will affect your credit score?

I have a walmart credit card and I want to transfer that balance to one of my Chase cards because it has 0.0 APR for 15 months, but I cant find the transfer option, so If ill use my Chase cards and pay it off will it lower my cc score?



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