What Is Manufactured Spending?
What is manufactured spending breakdown. I like this website. Doctor of credit breaks it down. They give an excellent summary to me and what they say is manufacturer. Spending is the process of purchasing cash equivalence with the rewards earning credit card where the rewards earned are greater than the fees incurred. It can be used for meeting. Minimum spending requirements are just racking up frequent flyer meyer miles with your favourite airline or hotel partner so i think breaking down a little bit more. What does does that mean like getting a gift card and then doing something with that gift cards. So it's like if you get if you have a credit card and you aren't frequent flyer miles or your rewards on every cash on every purchase which you can do is you could buy gift card and then you could sell that gift card and use the proceeds to pay off the credit card. So it's like the credit card bill. Let's say you buy hundred dollar gift card and then you pay off that hundred dollar gift card and maybe sell in for ninety dollars but you're awards was like ten percent so you can maybe like fifteen dollars back or something so you're in fifteen dollars and technically you spent nothing interest on the credit card. So that's the manufacturers spending idea that's the idea of using gaining more rewards and it's paying off your credit card using not your own money but the credit cards money absolutely so via travelers dot com guys if you're new woken free. All of our links are available on the website at Dot com so yeah via travelers dot com also says that essentially by artificially spending by either purchasing virtual gift cards products tools or services at the lowest cost possible. It is a you can think of this manufacturer. Spending spending arbitrage is how they describe it so they went into saying if you if you could earn say five percent cashback spending money at a store but it only costs you less than one percent to transact your inherently making money on that purchase which is interesting and and all these different ways because you can do it through gift cards be you can also do like you said through the frequent travelers thing travel rewards different things. You not you technically get it for free if you're able to sell whatever you purchase a credit card