Credit Card Discussion 2015: Best Reward, 0 Intro APR, Balance Transfers

[Kenton210]

Agree with TXSTYLE!!! I'm at ~2% utilization and about half of my credit cards haven't had balances or been used in years 😁

[PoorLurker]

Originally Posted by TXSTYLE

Gotta disagree. One if the highest factors to raise and maintain high scores right there with on time payments is "available credit ratio".
I've monitored my credit for years and I know for a fact that having more available credit raises scores! I try to keep a 5-10% useage. Of course some banks will want to close your accounts or reduce your limits if you go zero activity for extended periods. Amex dropped one of my cards from 20k to 10k the that very reason. I had to call and go off and they raised it back up.

I gotta disagree.

You need to make purchases using all lines of credit. I even stated that they do not need to be large purchases.

I even posted a screen shot where the FICO score reporting gave me advice to improve my score.

I am not sure how you can disagree.

[PoorLurker]

Originally Posted by Kenton210

Agree with TXSTYLE!!! I'm at ~2% utilization and about half of my credit cards haven't had balances or been used in years ��

Well, you are wrong.

[TXSTYLE]

No sir. You believe we are wrong. No need to argue. If we all have experienced success, go with what works!

[PoorLurker]

Originally Posted by TXSTYLE

No sir. You believe we are wrong. No need to argue. If we all have experienced success, go with what works!

What evidence do you have to disprove me?

You disagreed with me and then stated something that didn't directly disprove or address me in your original post.

The problem is that you discredited my advice which is based on facts with an argument that is factless.

[TXSTYLE]

Whatever makes you feel warm and fuzzy. I don't have to prove jack shit. My scores and what I see has worked for me is all that matters for me.

[NemesisX]

Your credit score doesn't decrease if you don't use all of your cards. It just doesn't increase as quickly, and in reality it depends on what your current score is. Keeping all of your cards "active" is a negligible component when it comes to determining one's FICO score. It's a factor, but it's low yield and it's only worth worrying about unless you want to achieve a FICO score of 850 for bragging rights.

Having a low credit utilization ratio, having no late payments, and length of credit history are the three most important factors in your credit score. I'll use myself as an example, I have 2 credit cards. I only use 1, my credit history is 8 years old, I've never had a late payment, and my FICO scores are all >815.

If I periodically charged a dollar or two on my other card could I push my credit score higher? Sure. But it'd be gravy at this point and it wouldn't really affect my home buying or loan interest rate prospects.

If I continued on as I am now my FICO score average might look something like this:

2017: 820
2018: 822
2019: 824

If I did exactly what I'm doing now and charged a dollar on my other (currently unused) card and paid it off in full, my credit utilization would increase negligibly but that cards would be active and my FICO average might look like this

2017: 821
2018: 823
2019: 826

I'm making up the numbers, but I know for a fact that my credit score hasn't decreased by not using my other card. A new credit user's FICO score does not start at the maximum 850. It starts off low (I don't know the exact number).

I started off with one card and used it for a year. Then I got a second cash rewards credit card and transferred all but $200 in credit limit onto the cash rewards card. I haven't touched my first card in years, although I still get updated versions in the mail whenever it expires.

[gatorfast]

Amex blue cash preferred has been fantastic for me. 6% on groceries and 3% on gas is huge. I always hit the $6k limit on groceries at some point during the year but I have a chase card which rotates benefits on a quarterly basis (each quarter new 5% bonus category) so I use that card when groceries are the bonus category.

[PoorLurker]

Originally Posted by NemesisX

Your credit score doesn't decrease if you don't use all of your cards. It just doesn't increase as quickly, and in reality it depends on what your current score is. Keeping all of your cards "active" is a negligible component when it comes to determining one's FICO score. It's a factor, but it's low yield and it's only worth worrying about unless you want to achieve a FICO score of 850 for bragging rights.

Read what I posted in the original post. I mention playing the high credit score game. This game is where you need to squeeze every aspect of credit building.

Originally Posted by PoorLurker

Make sure to use all of the cards if you are playing the "high credit score" game. If you have unused credit lines, it will decrease your credit score.

When I saw a drop in my credit score, the reporting agency had one bad thing to say. It said what I had screen shotted. I used multiple credit cards and it went back up past what it was before. I have been there and have played that game.

Maybe the third time's a charm (See where it says marginal areas, not as significant - thats the reason I mention people playing the high credit score game)

[EL Jeffe 5]

Thanks for posting this you done lots of homework for me
I normally like using cash but lately we been using more and more CC on Travel
We currently have Capital one CC we don't get nothing back
I will be choosing Citi just because I am Costco member I think they are partnering now.

Thanks Again

[smackdownM]

Yet, I'm not sure why "we could not find Pre-Qualified Offers for you at this time" for AMEX. AMEX says they have outdated "soft pull" information on me and a hard pull will "likely" get an instant approval. Not sure I want to risk an inquiry.

[TXSTYLE]

Originally Posted by smackdownM

Yet, I'm not sure why "we could not find Pre-Qualified Offers for you at this time" for AMEX. AMEX says they have outdated "soft pull" information on me and a hard pull will "likely" get an instant approval. Not sure I want to risk an inquiry.

There is no way in Hades you will be denied a AMEX card (or any for that matter!) with that score sir!

I too have noticed AMEX has phased out soft inquiry for new accounts. BUT... I have both the Blue Cash Preferred and Everyday Cards and LOVE them both! I opened the Everyday one first. And then after 6 months, I applied for the Blue online. No hard pull! Instantly approved for $15k.
One of the things I noticed and hear about them, if you currently have an account(s) with AMEX, they always only soft pull for new cards.
Also, they are by far the most generous with CLI using their well known "3x" method.

[wdb]

I have two Citi Mastercards. One for "me" and one for "we". Cash back, cash as in dollars not "points". Pay them off in full every month. No other debt, so while our credit score is quite good it is not as good as it might be; oddly the rating agencies like to see if you make payments on time. Uhm, we pay a dozen or so bills every month, on time, isn't that good enough? (No it is not.)

I carry another "me" Visa card I got through the credit union. I once inadvertently maxed out a card due to hotel/airline/etc. holding charges that take time to clear, and I found myself standing at an airport ticket counter unable to pay. So the second card is because "stuff happens".

EDIT: Discover is on my nevernevernevernever list. I found out the hard way that they side with vendors even in the face of evidence proving the vendor wrong. Who needs 'em.

[smackdownM]

Originally Posted by TXSTYLE

There is no way in Hades you will be denied a AMEX card (or any for that matter!) with that score sir!

I too have noticed AMEX has phased out soft inquiry for new accounts. BUT... I have both the Blue Cash Preferred and Everyday Cards and LOVE them both! I opened the Everyday one first. And then after 6 months, I applied for the Blue online. No hard pull! Instantly approved for $15k.
One of the things I noticed and hear about them, if you currently have an account(s) with AMEX, they always only soft pull for new cards.
Also, they are by far the most generous with CLI using their well known "3x" method.

Tempting. The Blue Cash Preferred seems like the right fit, but I don't spend enough to offset the annual fee. Considering the Blue Cash Everyday.

[MissMetal]

Originally Posted by gatorfast

Amex blue cash preferred has been fantastic for me. 6% on groceries and 3% on gas is huge. I always hit the $6k limit on groceries at some point during the year but I have a chase card which rotates benefits on a quarterly basis (each quarter new 5% bonus category) so I use that card when groceries are the bonus category.

That card is excellent. My husband and I each have Blue Cash card accounts, so we try to max out the 6k limit on the 6% groceries every 6 months, and then switch over to use the other person's card to hit another 6k.

Buying Amazon/Home Depot gift cards at the grocery store counts towards 6% back.

[gatorfast]

Originally Posted by MissMetal

That card is excellent. My husband and I each have Blue Cash card accounts, so we try to max out the 6k limit on the 6% groceries every 6 months, and then switch over to use the other person's card to hit another 6k.

Buying Amazon/Home Depot gift cards at the grocery store counts towards 6% back.

That's a great idea. Seems obvious but never thought to get a separate account for my wife (right now we are on the same account). Buying the gift cards is smart too.

[John 070]

Originally Posted by gatorfast

That's a great idea. Seems obvious but never thought to get a separate account for my wife (right now we are on the same account). Buying the gift cards is smart too.

The 5% warehouse club deals were good, Chase was doing that for the second half of the year. My wife's Premier LTX were purchased in a tax free state with 5% rebate from Chase, and then there's the 2% Costco rebate as well.

We just do the 3% amex blue deal. But they just had an offer 10% off your cable bill, up to $30, expiring 1/31/17. Embarrassed to say we got a $17 credit 2 days after paying (bill is too high, switching soon). gonna grab the other $13 this month.

[atxgt3]

I think I have around 5 credit cards right now, but I only use my JPM Reserve since it has a hidden tradeline and is a decent spending card. My credit score is in the 830s consistently even though most of my credit cards don't see any use at all. Maybe it could be a couple of points higher if I used all of them, but what for? I don't know if a higher credit score would do anything for me so I don't stress about it.

[TXSTYLE]

I was told by my wifes friend, who is a Underwriting Loan Manager for one of the Big Banks, that anything above 775 qualifies for the best rates they offer across the board: Car, Mortgage, personal etc.

[NemesisX]

Originally Posted by TXSTYLE

I was told by my wifes friend, who is a Underwriting Loan Manager for one of the Big Banks, that anything above 775 qualifies for the best rates they offer across the board: Car, Mortgage, personal etc.

Exactly, which is precisely why fussing over a couple of points once you're well above 800 is virtually meaningless other than for "bragging rights" (I'd hardly consider FICO scores to be brag worthy, hence the quotes)

[smackdownM]

Bump! I need another rewards card. Just got the promo for my Venture1 and my Chase Freedom is just a few purchases away. Any suggestions other than AMEX?

[NemesisX]

Originally Posted by smackdownM

Bump! I need another rewards card. Just got the promo for my Venture1 and my Chase Freedom is just a few purchases away. Any suggestions other than AMEX?

Citi double cash is a no fee card that gives a flat 2% back (1% when you charge, and 1% when you pay) on everything - no limits.

Bank of America cash rewards gives 3.3% back on gas, 2.2% on supermarket/groceries, and 1.1% on everything else provided that you deposit rewards into a BoA checking or saving account. Otherwise it's 3%, 2%, and 1%, respectively. It's also a no fee card. Gas and groceries get the 3.3% and 2.2% on no more than $2500 in purchases per quarter, and then they each earn 1.1%.