Right CC strategy
Dec 29, 2011 | 12:59 pm
#1
Original Poster
Suspended
Join Date: Aug 2008
Posts: 1,470
Right CC strategy
I found that I have too many active Chase, Citi & Capital One cards that I rarely use. Some of them have annual fees and I will be getting over the honeymoon period with them all and fees will be charged from the anniversary date onwards.
Since this is the season for pruning, I was wondering what is the best way to prune these cards so that I can launch an apporama when the next bazooka deal comes along (pardon the metaphors, 'tis the season to be drunk). The objective is (a) to not hurt the credit score (b) massage the credit score if at all possible and (c) to save money
Thanks for any advice you may have.
Since this is the season for pruning, I was wondering what is the best way to prune these cards so that I can launch an apporama when the next bazooka deal comes along (pardon the metaphors, 'tis the season to be drunk). The objective is (a) to not hurt the credit score (b) massage the credit score if at all possible and (c) to save money
- Should I close accounts outright?
- Should I call the CC companies to switch the fee payable cards to free versions (without bennies)?
- Should I do (2) above AND request that the credit limit be reduced?
- Any other course of action?
Thanks for any advice you may have.
Dec 29, 2011 | 1:10 pm
#2
Join Date: Sep 2011
Posts: 480
I found that I have too many active Chase, Citi & Capital One cards that I rarely use. Some of them have annual fees and I will be getting over the honeymoon period with them all and fees will be charged from the anniversary date onwards.
Since this is the season for pruning, I was wondering what is the best way to prune these cards so that I can launch an apporama when the next bazooka deal comes along (pardon the metaphors, 'tis the season to be drunk). The objective is (a) to not hurt the credit score (b) massage the credit score if at all possible and (c) to save money
Thanks for any advice you may have.
Since this is the season for pruning, I was wondering what is the best way to prune these cards so that I can launch an apporama when the next bazooka deal comes along (pardon the metaphors, 'tis the season to be drunk). The objective is (a) to not hurt the credit score (b) massage the credit score if at all possible and (c) to save money
- Should I close accounts outright?
- Should I call the CC companies to switch the fee payable cards to free versions (without bennies)?
- Should I do (2) above AND request that the credit limit be reduced?
- Any other course of action?
Thanks for any advice you may have.
If you're trying to massage your credit score, spend money on each of your open credit cards and pay it off on time in full each month. Over time, you will build a long credit history with several lenders.
Dec 29, 2011 | 1:17 pm
#3
Join Date: Mar 2010
Posts: 1,173
re
In order to help your credit score, the best path would be to downgrade to the free version. If you close an account or reduce the credit limit, your balance-to-limit ratio will increase simply because you are decreasing the denominator. This is one of the many factors that determine credit score. If you plan on churning, you will probably have to close some of the cards in order to get approved by that lender again. Your credit will take a ding, but you have to weigh the pros and cons.
If you're trying to massage your credit card, spend money on each of your open credit cards and pay it off on time in full each month. Over time, you will build a long credit history with several lenders.
If you're trying to massage your credit card, spend money on each of your open credit cards and pay it off on time in full each month. Over time, you will build a long credit history with several lenders.
Dec 29, 2011 | 2:58 pm
#4
In memoriam
Join Date: Jan 2006
Posts: 4,020
My rule is never pay an annual fee, never accept offers to switch to no fee card. This has been my rule for twenty or more years and when I break it I likely have regrets.
Only fees I paid in the last year, BA (to get 100K of the now devalued BA miles) and Starwood Amex which I keep from year to year for ongoing payments. Otherwise, when a fee shows up I cancel.
My credit score remains very, very high and I get new cards without much problem.
The banks punish loyalty and give those who cancel accounts big bonuses on new accounts. @:-)
Kinda crazy, but who ever said the credit system was sane?
Only fees I paid in the last year, BA (to get 100K of the now devalued BA miles) and Starwood Amex which I keep from year to year for ongoing payments. Otherwise, when a fee shows up I cancel.
My credit score remains very, very high and I get new cards without much problem.
The banks punish loyalty and give those who cancel accounts big bonuses on new accounts. @:-)
Kinda crazy, but who ever said the credit system was sane?
Dec 29, 2011 | 4:28 pm
#7
Join Date: Dec 2011
Posts: 52
Not sure what the best method is, but you were me, I would cancel all the recently acquired cards that have no extended value, and keep the old cards. As that guy said, most of the banks do nothing with regards to customer loyalty. If they don't like people gaming them for a bunch of new-user rewards then they can only blame themselves
Dec 29, 2011 | 5:06 pm
#8
In memoriam
Join Date: Jan 2006
Posts: 4,020
In response to post #5, never accept offer to downgrade because you will still have an account (which you got with no bonus when you downgraded) which will likely keep you from getting a bonus in the future.
Plus, most of the downgraded cards offer downgraded spend bonuses such as only one mile for two dollar spend.
Plus, most of the downgraded cards offer downgraded spend bonuses such as only one mile for two dollar spend.
Dec 29, 2011 | 6:07 pm
#9
Join Date: Apr 2011
Posts: 97
In response to post #5, never accept offer to downgrade because you will still have an account (which you got with no bonus when you downgraded) which will likely keep you from getting a bonus in the future.
Plus, most of the downgraded cards offer downgraded spend bonuses such as only one mile for two dollar spend.
Plus, most of the downgraded cards offer downgraded spend bonuses such as only one mile for two dollar spend.
Dec 29, 2011 | 7:37 pm
#11
Join Date: Jan 2008
Location: LAS
Programs: DL PM, UA PS, Hyatt Globalist, Marriott Titanium
Posts: 4,906
Dec 29, 2011 | 8:08 pm
#12
Join Date: Jul 2006
Location: LAX
Programs: AA Lifetime Plat, HH Diamond
Posts: 283
I have 2 no annual fee cards that I've had since 1990! Get a couple that you can stick in the sock drawer for years (use them every now and then..) and churn the rest - (preferably holding each until annual fees are due....) Just my .02.
Dec 29, 2011 | 11:44 pm
#13
Join Date: Aug 2009
Posts: 42
I have a United Mileage Plus card which I've had since 1987 with a credit limit of 25k. My total credit limit is 154k. My credit Karma score is 773. I'm sick of watching everyone getting 60k bonus miles offers while I'm getting nothing for being loyal. My question is how much of a hit on my credit score am I likely to get if I cancelled the card and when can I apply for the new explorer card after cancellation. Also, How long is it gonna take for my score to build back up? My $85 annual fee is due in Feb. Any advice?
Dec 30, 2011 | 3:56 am
#14
Original Member
Join Date: May 1998
Location: Tampa, FL
Programs: AAMM & PLT; UA Gold, DL Silver, Marriott LT Titanium Elite, Hilton Diamond, Hertz #1 Gold Club
Posts: 1,592
I really don't understand the issue people have against AF
, especially when the benefit is real, tangible and far outweigh the fee and the benefits earned under the no fee card. I recommended a card (reluctantly, I might add after she kept bugging me) to a co-worker and she was quite interested until I mentioned the AF which was waived the first year and the bonus points earned would have covered 5 years of fees.
Dec 30, 2011 | 3:51 pm
#15
Join Date: May 2009
Location: HNL
Programs: HA, DL, UA, PC Gold, A/club Plat, HH Gold, Hyatt Pl
Posts: 1,461
I really don't understand the issue people have against AF , especially when the benefit is real, tangible and far outweigh the fee and the benefits earned under the no fee card. I recommended a card (reluctantly, I might add after she kept bugging me) to a co-worker and she was quite interested until I mentioned the AF which was waived the first year and the bonus points earned would have covered 5 years of fees.
, especially when the benefit is real, tangible and far outweigh the fee and the benefits earned under the no fee card. I recommended a card (reluctantly, I might add after she kept bugging me) to a co-worker and she was quite interested until I mentioned the AF which was waived the first year and the bonus points earned would have covered 5 years of fees.