I can't decide if I want travel or cash rewards. I have a gut feeling that cash rewards are more "cost-effective," like I could deal with travel expenses more easily with the cash rewards, but it's just a feeling.

8/1/2011 6:06:48 PM

Travel rewards are great if you don't mind the fact that you get the most bang-for-your-buck (in general) on offseason flights at lousy times midweek.

8/1/2011 6:28:39 PM

Hurrah, I've been instantly approved for the Chase Freedom card.

Now, my current card is a Visa through Bank of America. I hate Bank of America. At what (if any) point would it be ok to cancel that card? I'm not going to be using it for anything, though I guess its credit limit will be higher than the new card for a little while. My credit rating is close to 800, so would creditors really mind one cancelled card?

8/1/2011 10:48:12 PM

Chase stopped letting me get cards from them since I already have 3.

8/1/2011 11:06:28 PM

^call them and offer to close one of your accounts to open the new one. I bet it works.

^^Never. Don't ever cancel the card, especially if it's your oldest / only card. Put it in a sockdrawer.

8/2/2011 12:53:04 PM

i'm going to be traveling for work quite a bit in the upcoming year...thinking about opening a marriott rewards card (chase, visa signature) with the 50,000 points bonus

http://www.mychasecreditcards.com/marriottpremier/50?CELL=67K4

the $65 annual fee is waived for the first year...but i don't like annual fees

thoughts

9/7/2011 1:37:14 PM

I think average credit card age is a large factor for scores. I got an Amazon card 3 months ago (my second) and my rating took a beating.

9/7/2011 2:17:33 PM

^^ Truthfully, if you are going to be traveling, as in flying a lot of places for work, you need to consider ponying up for the AMEX Gold Premier or Platinum with Gold Premier supplemental cards.

Where people go wrong in comparing Amex to some of the other places that allow you to pay with points, is that people like Delta often multiply AMEX points from the points you've already earned when you transfer. Other partners with AMEX do the same. I signed on with Gold with a 50k points bonus, which also gave us 15k points as soon as we spent 30k. Then we get 2x points on gas and grocery, and 3x points on airfare (I think hotels as well). You wont get the point multipliers with the regular cards. They'll just credit you $100 for every 10k points you have when you purchase a ticket. It sounds great, but it really isnt.

I transfered 100k points to Delta, which always offered a point multiplier of some kind with AMEX. Those 100k points turned into 150k points, and I got silver medallion status (no more baggage fees for me or my companions on Delta). 60k points was all that was needed for a ticket to Saint Thomas (or most other international flight).

For Gold Premier, they waive the $175 fee for the first year. The Platinum is $450, and is not waived, but to get full benefits, you'd need to get the platinum ($450) plus a gold supplemental ($50). Sounds like a lot of work, but if you go to flyertalk.com, you'll see this is one of the best tricks you can do if you travel a lot.

[Edited on September 7, 2011 at 2:43 PM. Reason : clarification]

9/7/2011 2:33:22 PM

Damn. Nice work. Have a link to the thread in flyertalk for that?

9/7/2011 2:36:46 PM

flyertalk.com has tons of threads on this. The hardcore travelers often have a Delta Platinum Reserve card, Amex platinum, Amex Gold Premier, and even a Starwood Platinum card because it financially makes sense depending on how much you travel.

Best bet it to start searching on the forum. It is super trafficked. They are super helpful there, but will get pissy if you post something that has already been discussed. You will want to look at the Rewards Programs sections, specifically for AMEX.

Section for AMEX:
http://www.flyertalk.com/forum/american-express-membership-rewards-410/

Section on all other:
http://www.flyertalk.com/forum/credit-card-programs-599/

I actually am posting a question on nesting gold premier under platinum. I thought this was possible, but it looks like you may only be able to next a standard gold under a platinum.
[Edited on September 7, 2011 at 2:43 PM. Reason : .]

[Edited on September 7, 2011 at 3:06 PM. Reason : .]

9/7/2011 2:40:50 PM

I just got an offer for American Express Gold rewards. When you sign up you get $500 in gift cards after $1000 in purchases within 3 months. 175 annual fee, but waived the first year *(so cancel before a year). I'm signing up tomorrow.

9/7/2011 8:48:29 PM

If you're not going to travel, that is about the same deal everyone else gets. I preferred the 50k points.

9/7/2011 9:07:27 PM

FIA is killing my Schwab 2% cashback card Time to find a new main.

9/8/2011 8:08:49 AM

Quote :

"Never. Don't ever cancel the card, especially if it's your oldest / only card. Put it in a sockdrawer. "

could someone explain why i shouldnt cancel my cc?

9/8/2011 9:45:39 AM

So say I have like 10-12 revolving credit accounts, including a couple store accounts (often through the big guys like wells fargo and chase). And i don't carry any balances month to month, and I don't care about my total credit line amount.

I think one of the metrics they use is average age of your credit accounts (right?).

Doesn't it make sense to close a few of the newer accounts (<4yrs old)? Especially some of the store accounts which I don't plan on using again? I would think if anything that would help you credit score right?

9/8/2011 11:18:42 AM

Dept store cards seem to be frowned upon anyways and too many available revolving accounts isn't necessarily a good thing either. The main thing is to not close your oldest and don't apply for every card you see since you get dinged on them pulling your credit report and it knocks down your average age.

9/8/2011 11:24:59 AM

^^^because age of accounts is a big factor in credit score. Also because it helps with utilization percentage. When the account falls off of your credit report, your average age will be lowered. If it's open, it will stay on your reports indefinitely.


^^Probably not, because I think most scores still factor closed counts into age.

[Edited on September 8, 2011 at 11:27 AM. Reason : slow]

9/8/2011 11:27:37 AM

synapse, you have far too many revolving accounts. You should prune it down to less than half what you have, leaving your longest open card (that established active continuous history).

Credit scores are a funny thing, though. You'll probably drop a bit when you close some of the revolving, but long term you'll be better off with less revolving.

I dont think I've ever had more than 4 revolving accounts, and all my scores are near the very top.

9/8/2011 11:44:11 AM

Well I might have shot high (gotta check the credit report)...but it's probably close to 10 (including the 3 store accounts, which I plan on closing, at the least). Thanks peeps.

9/8/2011 11:58:21 AM

Quote :

"FIA is killing my Schwab 2% cashback card Time to find a new main."

I wish I could go back to my old arguments about how people are tricked into using credit cards.

What it looks like: You're saving 2% of your purchases
What's really happening: You're helping the credit card agencies skim off trillions of dollars from businesses.

What you are doing: Driving up prices 10% for you to save 2%.


Moral of the story: Stop using credit cards for cash back. Use credit cards for security, paying over the internet, and what they're intended for.

Using cash will put a lot more money in the hands of businesses which create jobs which creates people with more money.

9/8/2011 12:02:19 PM

seriously, dude, bugger off

there is not a single person in this thread who gives your opinion a shred of validity because what it comes down to is versatility in spending is an undeniable benefit to ANY business, and credit cards significantly improve spending versatility

besides, unless you refuse all forms of payment but cash in your failed/failing pizza parlor, you can't talk...you'd have to be an utter idiot not the recognize the increase in patronage accepting electronic payments affords a business

and if you don't accept any forms of electronic payment, it's no wonder you're failing

[Edited on September 8, 2011 at 12:48 PM. Reason : .]

9/8/2011 12:48:00 PM

^^No one is "tricking" anyone in here. We understand how this works. No one disagreed that what you are saying doesn't happen to some extent. The problem with your argument is that at this point credit cards are common fare: accepted almost everywhere and used by the majority of people. It is a convenience and security issue first and foremost, not a cash back issue. This means that, unless places (beside a few gas stations) start having one price for cash and one price for credit, any increase in price due to credit cards is felt whether you spend cash or credit and unless the majority of the country all of a sudden stops using credit that increase in price will remain there.

As you can see, credit cards are not going away anytime soon. As a result, any increase in price is not going away anytime soon, even if you and I stopped using our credit cards.

So, with all of that in mind, let's look at your scenario. Let's assume your proposed 10% increase in price due to people wanting to use credit cards and a business feeling that they need to supply that service to stay competitive. If a product cost X dollars cash, it now 1.1X across the board due to credit card use. Sure that is no fun, but assuming I use my 5% chase cash back, why would I spend 1.1X for the product using cash instead of spending 1.045X on the product by using my credit card?

Besides, I would wager that most business have seen a positive impact on spending due to the increased usage of credit cards (mainly regarding impulsive spenders). If someone leaves with $10 to buy product Y which costs $10, they are only going to buy product Y even if they also now like product Z after browsing the store. If they have a credit card they might buy Y & Z.

[Edited on September 8, 2011 at 1:03 PM. Reason : ]

9/8/2011 12:53:57 PM

^,^^ - Successful troll is successful. Let's try to keep this thread on track...


Found this graphic:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

So in terms of amount owed, lets say i have 10 credit cards, with a total of $30k in credit limits. Say I charge up an average of $8k per month on a few of those cards, and pay the full balance every month, never carrying balances. When they go to calculate my score, will my "amount owed" by $0/$30k (since I pay it off every month), or will it be something more like $5k/$30k, since they pulled the report midcycle and thats the amount I had charged up at that point in the month?

9/8/2011 1:04:13 PM

I think it will be 5K iirc. I get a little nervous if mine gets close to that account fearing it will be pulled mid cycle so I think I paid off half early last time that happened.

9/8/2011 1:41:29 PM

Quote :

"hen they go to calculate my score, will my "amount owed" by $0/$30k (since I pay it off every month), or will it be something more like $5k/$30k, since they pulled the report midcycle and thats the amount I had charged up at that point in the month?"

Depends when your credit cards report the balance. They don't necessarily update it when you make a payment.

9/8/2011 2:46:08 PM

Quote :

"synapse, you have far too many revolving accounts. You should prune it down to less than half what you have, leaving your longest open card (that established active continuous history)."

Dude that's bull. I have nearly thirty accounts on my reports and my FICO is approaching 800.

9/8/2011 8:00:09 PM

No, actually. Its not. There are many things that affect credit score. No situation is the same. The catch is not closing accounts that considerably affect your debt/credit line ratio. If you have a couple of accounts that have a 15-20k range, and a bunch of $500 department store cards, closing the $500 cards isnt going to affect you much. If, by closing bigger accounts, you end up increasing your debt/credit line ratio, it can be a negative thing.

Also, 30 open accounts? Really? Very hard to believe. Why would anyone need 30 credit card accounts.

http://www.google.com/url?q=http://www.debtorsunite.com/Articles/Credit-Scoring/Number-of-Revolving-Accounts.aspx&sa=U&ei=qG9pTvDSOMSdgQfTz4T-BQ&ved=0CCYQFjAB&usg=AFQjCNEvO46EDXphWpZRe5hYoehzwRc2bQ

From fool.com:
http://www.fool.com/personal-finance/credit/dont-cancel-that-credit-card.aspx

Quote :

"Why cancel cards at all? It may sound like the lending industry loves customers who have gobs of plastic, but as with most things, it's best not to binge. According to Fair Isaac, once you acquire more than seven revolving debt accounts, your FICO credit score begins to suffer a little. And while simply closing accounts won't necessarily have an immediate positive effect, over time it could boost your credit score. So let's see if it's time to break up with some of your banks."

http://www.credittothewise.com/credit/how-many-credit-accounts-should-i-have


[Edited on September 8, 2011 at 10:01 PM. Reason : ,]

9/8/2011 9:46:29 PM

If you have a thick credit file, having something bad happen to one of your accounts will hurt a lot less. If you have three cards and one gets closed, your utilization takes a huge hit.

9/8/2011 10:00:10 PM

Conversely, trying to manage a ton of accounts almost guarantees your chance of screwing something up and not paying something on time increases dramatically.

I was editing the debt/credit line comment when you typed your response. I suspect companies would extend you a much higher credit line if they didnt see 24 other credit card accounts open.

Bottom line: 5 credit cards with higher limits is better than a bunch of cards with small limits.

[Edited on September 8, 2011 at 10:05 PM. Reason : ,]

9/8/2011 10:03:06 PM

30 credit cards? that's a little overboard

9/8/2011 10:20:28 PM

Do you mean 30 credit cards or 30 'accounts' that show up on your credit report?

If you go through undergrad and grad school and fully utilize student loans, you can easily end up with 15+ individual loans that all show up on your credit report depending on your individual loan situation.

9/8/2011 10:23:08 PM

30 student loans does not equal 30 revolving accounts. We are talking about revolving accounts only.

9/9/2011 7:45:04 AM

I currently have about 18 revolving accounts. I'd say my high was probably 25. My credit score has never suffered from it in any distinguishable way.

Quote :

"When they go to calculate my score, will my "amount owed" by $0/$30k (since I pay it off every month), or will it be something more like $5k/$30k, since they pulled the report midcycle and thats the amount I had charged up at that point in the month?"

synapse: most cards report your statement balance, and only your statement balance.

also, I would go ahead and close your recent accounts. Call the issuer and see if you can get the credit limit rolled into your oldest card w/that issuer first.

Quote :

" I wish I could go back to my old arguments about how people are tricked into using credit cards."

I need to find the card with the best trick now that my 2% illusion is gone. Anyone have any recommendations? I've been eyeing the Fidelity 2% AmEx, but AmEx is kind of a pain since it's not as widely accepted.

[Edited on September 9, 2011 at 2:14 PM. Reason : d]

9/9/2011 2:09:09 PM

Amex is accepted just about everywhere. We have switched to purchasing EVERYTHING on our Amex. The percentage of charges that I have to switch to my Mastercard are only about 10%.

The places that standout that dont take AMEX are a few fast food joints and movie theaters. Every grocery store and practically every gas station will take AMEX.

[Edited on September 9, 2011 at 3:43 PM. Reason : .]

9/9/2011 3:40:10 PM

Yea, you're right... I was actually considering going with Capital One for a minute:

http://www.capitalone.com/creditcards/cash-rewards-credit-card/?linkid=WWW_1010_CARD_TGUNS11_Z_Z_01_T_CP95701EW

1.5% cashback and no foreign exchange fees. But it's Capital One.....


Fidelity Amex it is, then:

http://personal.fidelity.com/products/checking/content/amex_rewards_card.shtml

9/10/2011 8:55:38 AM

I love my amex platinum. Great for travelling (free admirals club, etc)and i use its concierge service all the time. Highly recommended 4 travelers

9/10/2011 12:07:54 PM

^ditto, you can turn your nose up at the fee, but it pays for itself multiple times over with little effort when travelling. just looking at the website for benefits they offer more than other companies even give thought to.

With that said, for the little I need a visa, would it be worth ditching the generic BB&T visa for a Chase Freedom? Any real advantage other than the little cash back I would see?

9/11/2011 1:00:01 AM

What does the concierge service do for you? I've never really used it.

9/12/2011 7:49:52 AM

whelp, Bank of America bought out my sweet credit card and made it shitty

what's good in the credit card offers these days?

[Edited on September 18, 2011 at 2:56 PM. Reason : hmm maybe i should read the thread]

9/18/2011 2:56:17 PM

^ without knowing anything about your spending habits, get a chase freedom visa...they're currently running a $200 cashback bonus (if you spend $500 within the first 3 months), no annual fee, 5% revolving categories, 1% on everything...they also have a shop rewards center for bonus cashback when you use their link to shop online

https://applynowdc2.chase.com/FlexAppWeb/renderApp.do?SPID=DGWR

they're what discover used to be and more...though their shopping bonuses suck compared to discover's

9/19/2011 8:28:01 AM

just missed the edit windows...you can get $250 cashback on the chase freedom

https://applynowdc2.chase.com/FlexAppWeb/renderApp.do?SPID=DJK7

9/19/2011 9:02:21 AM

I like my chase business which is 3% on almost all my expenses, but I did sign up for Freedom as well since I'm a bonus whore.

9/19/2011 10:38:58 AM

^ got a link for that?

9/19/2011 2:57:12 PM

Look's like they dropped gas and dining down to 2%, but they upped a few categories to 5%

https://www.chase.com/online/business-credit-cards/ink-business-credit-cards.htm

$250 cash back
5% CASH BACK ON OFFICE SUPPLIES, CABLE SERVICES, AND TELECOM SERVICES
2% CASH BACK ON GAS AND DINING

9/19/2011 4:11:23 PM

^just a note: this card will not show up on your credit report or factor in to your credit score.
That can be good or bad (depending on your situation), just an FYI.



On another note, I think I mentioned earlier in the thread about the AARP Visa card (5% for 6 months on everything). Well, since getting that card I've been using it for everything and neglecting my other regular cards. I've gotten "special offers" on almost all of them, so it looks like I'm going to be raking in the bonus cash. My regular gas card, for example, is the PenFed Platinum. They are offering me $100 cash back bonus if I spend $500 in October and November ($200 total, on top of the 5%). Not bad. It seems like the cc issuers are kinda desperate to keep us using their cards.

[Edited on September 21, 2011 at 9:30 AM. Reason : f]

9/21/2011 9:24:11 AM

I suspect more and more people are going to switch out from debit to credit when more and more banks start charging for debit. I beat BB&T to the punch. If they get a single swipe debit during the month, it is by accident. Everything is done through AMEX or Mastercard.

[Edited on September 21, 2011 at 10:46 AM. Reason : .]

9/21/2011 10:30:23 AM

Quote :

"CABLE SERVICES, AND TELECOM SERVICES"

Will that cover home cable (uverse, TWC, Dish etc) and call phone bills? For me that'd be worth $150 a year right off the bat...

9/21/2011 10:36:55 AM

I'm pretty sure that card shows up on my report. Why wouldn't it?

Quote :

"They are offering me $100 cash back bonus if I spend $500 in October and November "

Link?

I assume it covers TWC. I'm not sure wtf else it would be referring to. I've tried looking at a breakdown of my pts, but it just shows the total amount. I put everything on that card and avg 2.5% cashback.

9/21/2011 11:54:48 AM

^it's a business card. Granted, sometimes cards are labelled "business" but aren't really. That one seems to be a true business card. Did you have to provide a EIN when you applied (or your SSN if applying as a 'Sole Propietor')? If so, this card won't show up on your personal report.

re: the $100 cashback offer, it was just an email I got directly from PenFed. I'm assuming it's targeted and for existing (dormant) holders only. It said something to the effect of "we've noticed you're not using you card anymore, here's some money!"

[Edited on September 21, 2011 at 12:20 PM. Reason : s]

9/21/2011 12:19:06 PM

SSN

9/21/2011 2:49:06 PM