AT&T Bills using VGC

[myls2go]

So I was thinking about using my Chase Freedom to buy a few VGCs from Sam's Club to make the most of the 5% cash back and use those to pay off my AT&T bills (maybe $500 at a time). Each $500 VGC would pay off around 2 months of my charges and I'm not sure if I really want to put any more money into my account.

Also, thinking about using VGCs for fuel. I mean, the wife runs through around $150 every month, so a single VGC would last around 3.5 months. Buy a few, stock up and use them over time.

The benefit with both of these is that I capitalize on the 5% cash back (~4% after VGC load charge), which better than the 2% I get from my Amex BCE. More importantly, it nets me UR which I consider more valuable than the 2 cents I get back from my BCE on every dollar.

I know, this is probably pretty minor league compared to others here but these are my baby steps into the world of MS so if anyone has any experience using VGCs for these two common expenses then some confirmation/guidance would be much appreciated. I'm not completely sure if AT&T will accept a VGC as a method of payment.

Thanks!

 

[Someone]

What you're talking about isn't really MS, it's shifting/prepaying your ordinary spend. There's nothing wrong with doing that if it's what works best for you, but many think of that more as a backup plan.

Is there any way you can get the money out of the VGCs and use it to pay off your freedom, netting the points and freeing you to earn even more points on your ordinary spend?

I don't know enough about your situation, but gas and telecom are bonus categories on several cards so you may be passing up another opportunity if you shift that spend onto VGCs.

 

[myls2go]

What you're talking about isn't really MS, it's shifting/prepaying your ordinary spend. There's nothing wrong with doing that if it's what works best for you, but many think of that more as a backup plan.

Is there any way you can get the money out of the VGCs and use it to pay off your freedom, netting the points and freeing you to earn even more points on your ordinary spend?

I don't know enough about your situation, but gas and telecom are bonus categories on several cards so you may be passing up another opportunity if you shift that spend onto VGCs.

You're right in saying that this probably doesn't qualify as MS. I guess I'm being risk averse to start off with.

Potentially, the easiest way to liquidate the VGCs is to get a money order and/or use Serve until I get shutdown. I don't want to do MOs because I'm hoping to buy a place soon and don't want too many unnecessary MO deposits on my accounts, primary or CU accounts (which I will have to open). That leaves me with Serve and using the VGCs over time, neither of which I'm opposed to, but each come with their own cons.

My current card arsenal gets me 2% on gas with the Amex BCE and 5x points on my Amex Hilton Honors.
Everything else is 1% for now. Similarly with AT&T, I get 1% with all of my cards, so effectively I'd be increasing the number of points I earn using the Freedom to buy VGCs from Sam's Club and using those to pay off these bills.

Long and arduous process to earn a few extra points, I know, but the best that I could think of given my impending mortgage application.

 

[Someone]

The total dollar amount involved is only $1500/qtr, so this is probably moot anyway, but...

Many folks keep separate accounts for MO deposits, so if you're not commingling your payroll/savings with the MOs, you could probably just not include that account when you apply for a mortgage... it's been years since I applied for one, but they seemed more concerned with applicants trying to overstate income or assets than understating them. If $1500 looks significant on your balance sheet and you pay Chase from your Serve (or separate checking acct), an astute underwriter might ask where the payment for your Freedom card came from, then you're on the hook to explain it anyway.

Since you have no cards that net you over 2% for gas and telecom, I think your plan to shift spend is reasonable for now. You might want to pick up cards that bonus those categories once your mortgage goes through (possibly after your close on the house but before the mortgage hits your credit report, since your score will be high and drop a bit afterward).

 

[myls2go]

The total dollar amount involved is only $1500/qtr, so this is probably moot anyway, but...

Many folks keep separate accounts for MO deposits, so if you're not commingling your payroll/savings with the MOs, you could probably just not include that account when you apply for a mortgage... it's been years since I applied for one, but they seemed more concerned with applicants trying to overstate income or assets than understating them. If $1500 looks significant on your balance sheet and you pay Chase from your Serve (or separate checking acct), an astute underwriter might ask where the payment for your Freedom card came from, then you're on the hook to explain it anyway.

Since you have no cards that net you over 2% for gas and telecom, I think your plan to shift spend is reasonable for now. You might want to pick up cards that bonus those categories once your mortgage goes through (possibly after your close on the house but before the mortgage hits your credit report, since your score will be high and drop a bit afterward).

Thank for the guidance - I appreciate it.

I've been prepping myself for an application spree as soon as I close. I had applied for the Citi Prestige and Amex Hilton (wife) after pre approval, but made sure to speak with the loan agent about the repercussions. He didn't think one card each would be a problem as long as I keep my balances low. Now, I regret not having had my wife apply for something other than the Hilton.

Anyway, I digress. I guess this works for the next few months. Approx. 6k UR every quarter till the end of the year isn't so bad either.