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Discover 5% Bonus~Groceries/restaurants etc
Old 09-01-2009, 04:13 PM   #1
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Discover 5% Bonus~Groceries/restaurants etc

Just signed up for the Oct-Dec 5% Bonus. Since it's only $20, it's no big deal, unless you do not want to claim the $20.

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Thank you for participating in our 5% Cashback Bonus program. We just wanted to remind you how easy it is to make your money worth More.


Just use your card at grocery stores, restaurants and on movie tickets and rentals from October 1, 2009 until December 31, 2009, and get 5% Cashback Bonus* on up to $400 in these purchases. Remember, all your other purchases will earn up to 1% unlimited Cashback Bonus automatically.

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Old 09-01-2009, 11:39 PM   #2
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Thanks for reminding me - I just went and signed up. That's pretty much the only time that we use our Discover card now - for those 5% bonuses. But we make sure to max those out every quarter!
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Old 09-02-2009, 01:12 AM   #3
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I recently came across an infographic where they mentioned your purchase and its effect on credit score. It mentioned that buying groceries using your credit card has adverse effect on your credit score (and my jaw dropped) The reasoning was, you can not even afford to buy your groceries, bare necessities, with cash (in fact, I prefer not to handle cash)

So I wonder if this 5% cashback worth affecting credit score?
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Old 09-02-2009, 01:25 AM   #4
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Interesting! I used to always pay cash (well, ATM card) for groceries. Now I use my Hilton AMEX, because they pay a bonus for grocery purchases. It's all a game with us - we chase points, rebates, whoever wants to pay us! My DH knows to ask me whenever we charge - which card does this go on, honey? In other words, who pays a bonus for this type of purchase?

As far as I know, FICO doesn't get any information about the type of charges that you're doing - they just get your balance and payment information. I may be wrong - but I would be surprised if they get component information about your charges.
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Old 09-02-2009, 09:39 AM   #5
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I recently came across an infographic where they mentioned your purchase and its effect on credit score. It mentioned that buying groceries using your credit card has adverse effect on your credit score (and my jaw dropped) The reasoning was, you can not even afford to buy your groceries, bare necessities, with cash (in fact, I prefer not to handle cash)

So I wonder if this 5% cashback worth affecting credit score?
Can you provide a link to the infographic (if you saw it on the web, that is)? It is hard to imagine that your credit score could be affected by buying groceries with a credit card. I pay my water bill with a credit card. Water is also a necessity. We pay just about everything with credit cards except gas, electric, and phone which are bank drafts -- and the occasional one off things that require a paper check, or for which a paper check is more convenient.
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Old 09-02-2009, 10:18 AM   #6
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Originally Posted by noelm View Post
I recently came across an infographic where they mentioned your purchase and its effect on credit score. It mentioned that buying groceries using your credit card has adverse effect on your credit score (and my jaw dropped) The reasoning was, you can not even afford to buy your groceries, bare necessities, with cash (in fact, I prefer not to handle cash)

So I wonder if this 5% cashback worth affecting credit score?
Not true (in my sample of one anyway), We always use CC for all purchases (including groceries) and have for years. and score is north of 800. Of course, always pay the balance in full each month
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Old 09-02-2009, 05:13 PM   #7
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Quote:
Originally Posted by noelm View Post
I recently came across an infographic where they mentioned your purchase and its effect on credit score. It mentioned that buying groceries using your credit card has adverse effect on your credit score (and my jaw dropped) The reasoning was, you can not even afford to buy your groceries, bare necessities, with cash (in fact, I prefer not to handle cash)

So I wonder if this 5% cashback worth affecting credit score?
I recall reading that tidbit a while ago and I recall that the idea was that if your charged your food, you were probably out of cash, thus a poor credit risk. I don't know if that was true then, but I doubt that it's true today because all grocery stores accept plastic now and many (most of them post here) folks charge close to 100% of their purchases these days and pay off the balance monthly.
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Old 09-02-2009, 05:28 PM   #8
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Quote:
Originally Posted by noelm View Post
I recently came across an infographic where they mentioned your purchase and its effect on credit score. It mentioned that buying groceries using your credit card has adverse effect on your credit score (and my jaw dropped) The reasoning was, you can not even afford to buy your groceries, bare necessities, with cash (in fact, I prefer not to handle cash)

So I wonder if this 5% cashback worth affecting credit score?
I just googled the concept, and only found one entry on the first two pages about this. And that one was hypothetical, talking about how some credit card companies might datamine users to determine their creditworthiness, and mentioned buying groceries as a potential option. So to me, yes, it's well worth it to get the 5% (which is money that I use everyday) back on the faint possibility my credit score (which I use once every few years) would be lowered a point or two. If my credit score was low and I needed credit I might avoid the things they are profiling for.

As an aside, every other link on the two pages I got back from Google mentioned buying things like groceries on a CC as a good way to build your credit rating.
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credit card buying pattern
Old 09-04-2009, 10:31 AM   #9
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credit card buying pattern

The info that I read said that if you START paying for groceries with a credit card, when you were rarely or ever doing so before, that that will adversely affect your credit rating for some period of time. It is an indication that you are more strapped for cash than before.
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Old 09-04-2009, 11:06 AM   #10
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The info that I read said that if you START paying for groceries with a credit card, when you were rarely or ever doing so before, that that will adversely affect your credit rating for some period of time. It is an indication that you are more strapped for cash than before.
I guess that could be true if you carried an ever-increasing monthly credit card balance, but that is like burning money. Consistently carrying a credit card balance never made much sense to me.
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Old 09-06-2009, 08:27 PM   #11
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I had read somewhere (great source, I know) that the actual credit card company was analyzing the purchasing information and changing the limits on your card or interest rate based on what was being purchased. So if you were using your AMEX for groceries where in the past you hadn't, this raised a red flag so your limit would be reduced to 'lessen' the amount you might default on.
Somehow, if you charged items to your AMEX from the strip joint, your interest rate might go up for the same reason. I guess people who charge their drinks, etc. instead of paying cash default more?!?
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Old 09-07-2009, 11:49 AM   #12
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Somehow, if you charged items to your AMEX from the strip joint, your interest rate might go up for the same reason.
My extensive research in this field indicates that there are few lap dancers that are prepared, or equipped, to process a CC transaction, though they seem to be prepared for many other activities for cash. I'm just sayin'...
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Old 09-08-2009, 05:44 AM   #13
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Originally Posted by Ronnieboy View Post
I had read somewhere (great source, I know) that the actual credit card company was analyzing the purchasing information and changing the limits on your card or interest rate based on what was being purchased. So if you were using your AMEX for groceries where in the past you hadn't, this raised a red flag so your limit would be reduced to 'lessen' the amount you might default on.
Somehow, if you charged items to your AMEX from the strip joint, your interest rate might go up for the same reason. I guess people who charge their drinks, etc. instead of paying cash default more?!?
I heard same stuff - some story on TV if buy drinks at a bar for a group of friends you'll look like an alcoholic to CC company and raise your interest rate or reduce credit score...

There's so much damn media hype on "credit score management" - people need to get/stay out of debt and pay their bills - this isn't rocket science.
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Old 09-08-2009, 03:47 PM   #14
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Thanks for reminding me Mickeyd. I just signed up.
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Old 11-30-2009, 04:52 PM   #15
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Just signed up for the Oct-Dec 5% Bonus. Since it's only $20, it's no big deal, unless you do not want to claim the $20.
I'm just bringing this thread back to say Thanks, MickeyD, for letting us know about this. I had a Discover Card that I wasn't using much - I usually use another rewards card that gives 3% in "Subaru Bucks". So, I wasn't aware of this deal until I saw your message. I quickly went to my account online, signed up for the deal, and am busy using my Discover Card at restaurants and grocery stores to get that 5% rebate. Looking forward to that $20 in "found money"!
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Old 11-30-2009, 07:59 PM   #16
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It was AMEX doing data mining. They examined types of CC transactions (groceries, gas, vs dining, retailing) as well as type of provider (Walmart, Dollar Tree vs. Safeway, Sears) then tailored what your new credit limits would be. It was about 6 months ago when all CC providers were evaluating CC default risk.
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Old 12-01-2009, 04:25 PM   #17
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My extensive research in this field indicates that there are few lap dancers that are prepared, or equipped, to process a CC transaction, though they seem to be prepared for many other activities for cash. I'm just sayin'...

I can only imagine where they would put the card reader
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Old 12-01-2009, 07:33 PM   #18
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Maxed mine for the quarter on restaurants - $400 doesn't go as far as it used to...
Also, used the shopping thingy for 5% on Hotels.com - who knows when they'll get around to giving that bonus...
Groceries get 2% on penfed visa - sooo.
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