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-   -   Which card(s) to use for high spend or large purchases? [Consolidated] (https://www.flyertalk.com/forum/credit-card-programs/1475167-card-s-use-high-spend-large-purchases-consolidated.html)

MzGreen Jun 11, 13 3:07 pm

Which card(s) to use for high spend or large purchases? [Consolidated]
 
MrGreen and I are about to make a large ($20K) purchase next week, and the merchant is cool with splitting it between as many cards as we like.

Of course that meant it was time for an AOR.

Got our 7 new cards in the mail (3 in my name, 4 in his), and we're going to put about $5K each on 4 of them. (Got the spend covered for the other three.)

So, I'm just trying to navigate how to make this go as smoothly as possible without setting off any red flags.

We're looking at an Amex, a Citi, and two Barclays. Paying off the Amex/Citi immediately, and paying off a chunk of the Barclays but financing some of it over the next few months since the Arrivals have a 12mo intro 0% APR.

Just a little paranoid about running into snags (like, getting accounts closed).

- Issues with making a large purchase on a new card?
- Does it make a difference if it's the FIRST charge? Should we make a small purchase on each first?
- Better to wait until after the first statement? (All of the statements will have cut by the 20th, so we could.)
- Worth calling in advance to notify them about the large charge? Would that serve to alleviate concerns or just set off a flag?
- Do they care about the charge price relative to the spend requirement? Like, if the amount of one purchase is exactly the min spend?
- What about the charge price relative to the limit? For example, the limit on the Amex is $7.5K, so would a $5K purchase set off an alarm because it's over 50% of the limit (even though we'd pay it off immediately)?

Also, we'll be leaving balances of 29% the limits on the Barclays cards, so hopefully that util-ratio doesn't bother anyone too much while we pay them down over the next few months.

patnlcc Jun 11, 13 4:36 pm

I tried spending the full credit limit on a new card as a first purchase and it was refused by my CC company. They called me later at home and said it was stopped because they were concerned that the new card had been delivered to the wrong person. Once i cleared it with them, i went back to the store and completed the purchase. Better to call each first and tell them your intentions.

xiKiNGix Jun 11, 13 5:35 pm

Just call your CC and give them a heads up and it shouldn't be a problem.

Don't worry about getting your accounts closed, you have to understand that most of the account closures are due to award abuse/obvious signs of manufactured spend.

MzGreen Jun 11, 13 5:47 pm


Originally Posted by xiKiNGix (Post 20905948)
Don't worry about getting your accounts closed, you have to understand that most of the account closures are due to award abuse/obvious signs of manufactured spend.

I've read about plenty of account closures (Barclays) that had nothing to do with manufactured spend but resulted from credit-report changes that occurred after opening the account (such as opening other accounts).

skitch23 Jun 11, 13 7:51 pm

I had some unexpected expenses come up about a month after I got my two amex's and was worried about getting flagged for unusual activity. I just called them and gave them a heads up that I needed to make a large purchase online split across both cards. They asked me what the amounts were and made a note on my account. No problems at all.

StartinSanDiego Jun 11, 13 11:00 pm

I have a large, recurring expense that seems to set off every bell and whistle in town. I do call in advance, or even make the charge while I'm right there on the phone with the CS agent. New cards seem more prone to this than seasoned ones. Fraud alerts are a PITA!

For your Utilization ratio... put the revolving balance on your highest CL card

FlyerDiver Jun 29, 13 2:10 pm

Advice Needed for Upcoming Large Purchase - Add a New Card?
 
Hey All!

I'm in the market for some advice. I won't bore you with the details, so allow me to outline me and my situation:

Credit Karma: 762
Credit Sesame: 752
Age: 24
Gross Annual Income: $65,000
Current Cards:
  1. Chase Freedom (Opened 2006, $4300 limit)
  2. Chase Sapphire (Opened April 2013, $5000 limit)
  3. Chase Ink Plus (Opened June 2013, $5000 limit)
  4. Discover IT (Opened May 2012, $5750 lmit)
  5. American Express Blue Cash Everyday (Opened January 2013, $6000 limit)
Reward Goal: September 2014 Honeymoon to Hawaii (probably Maui) from JAX, Business/First Class & 4/5 Star Resort while there

I have an upcoming purchase in 2 weeks of around $2,000 for new kitchen cabinets. I think this would be an incredible opportunity to take advantage of the ability to meet a minimum spending requirement for a new card, but I'm unsure of the following:
  1. If I can get approved for a "valuable" card with so many recent approvals.
  2. Which card to apply for to help me reach my reward goal.

Does anyone have and advice or guidance for this motivated noobie?

My only reward/mile savings is currently 10k UR points, so I'm starting pretty "fresh" in attempting to reach this goal.

Any and all advice is extremely appreciated! Thanks!

ReduceTC Jun 29, 13 4:04 pm

Advice Needed for Upcoming Large Purchase - Add a New Card?
 
$2000 is a large purchase ?

PainCorp Jun 29, 13 4:08 pm

Chase UA for 50k after $1k in 3m, get 5k for adding an AU, and double dip with the UR mall for 5 UR/$ (I think).

In the future, it's also worth letting us know where you already have points, or if you need them in a certain airline, without that, we can only guess, like I did above.

Spend some time reading the threads in the CC forums, and you'll find the best offers and be able to compare them and figure out what is best for you.

pricesquire Jun 29, 13 4:27 pm

I'd say a $2k spend for a 24 year old is considered a large purchase...

HMPS Jun 29, 13 4:56 pm


Originally Posted by ReduceTC (Post 21012816)
$2000 is a large purchase ?

Why not if you are carrying no debt, have most all big ticket items, no mortgage......:p

FlyerDiver Jun 29, 13 5:38 pm


Originally Posted by ReduceTC (Post 21012816)
$2000 is a large purchase ?

Yes, for me, $2000 is a large purchase. As another poster suggested, I also carry no debt and don't have a mortgage. My fiancee and I are also living solely off my income at the moment, so $2000 is a considerable expense. I'm sorry if you were expecting the purchase amount to be higher.


Originally Posted by PainCorp (Post 21012836)
Chase UA for 50k after $1k in 3m, get 5k for adding an AU, and double dip with the UR mall for 5 UR/$ (I think).

In the future, it's also worth letting us know where you already have points, or if you need them in a certain airline, without that, we can only guess, like I did above.

Spend some time reading the threads in the CC forums, and you'll find the best offers and be able to compare them and figure out what is best for you.

Thanks for the contribution! As mentioned in my original post, my only points right now are 10k UR points. I used to be a cash-back-only guy and always redeemed my points for statement credits, as I didn't have a ton of interest in traveling. I'm beginning to change that state of mind though ;)

Do you really think I can get approved for the Chase UA card, with a Chase approval in both April and June of this year? From everything I've read, the June business card approval is going to be too close to a new application. Thoughts?

PainCorp Jun 29, 13 5:58 pm


Originally Posted by networkwasher (Post 21013159)
Thanks for the contribution! As mentioned in my original post, my only points right now are 10k UR points. I used to be a cash-back-only guy and always redeemed my points for statement credits, as I didn't have a ton of interest in traveling. I'm beginning to change that state of mind though ;)

Do you really think I can get approved for the Chase UA card, with a Chase approval in both April and June of this year? From everything I've read, the June business card approval is going to be too close to a new application. Thoughts?

Doh! I missed the UR part, sorry! I'm right there with you, used to do cash back, and now I see the error in my ways.

The new accounts is a potential valid issue, being of a similar age, I opened two Chase cards in January and they just denied me an Ink citing the recent accounts. My income is also substantially less than yours, so take that all for what it's worth.

Might be worth trying for the Citi AA card, or the US Air card, but I think you'll have better luck with the Citi AA card, just make sure you find the 50k link. The spending on that is $2,500 or $3k, not sure anymore.

You just want one card? How much other spending can you put on it in a month?

FlyerDiver Jun 29, 13 6:26 pm


Originally Posted by PainCorp (Post 21013214)
Doh! I missed the UR part, sorry! I'm right there with you, used to do cash back, and now I see the error in my ways.

The new accounts is a potential valid issue, being of a similar age, I opened two Chase cards in January and they just denied me an Ink citing the recent accounts. My income is also substantially less than yours, so take that all for what it's worth.

Might be worth trying for the Citi AA card, or the US Air card, but I think you'll have better luck with the Citi AA card, just make sure you find the 50k link. The spending on that is $2,500 or $3k, not sure anymore.

You just want one card? How much other spending can you put on it in a month?

I'm open to more than one card for sure. I've got a couple Q3 rotating categories for gas coming up, so that will take priority over additional cards (if it becomes a factor), as I'll net more UR points this way. However, I can put about $2000 of manufactured spending on a card in a month and about $2000 of real spending per month, relatively comfortably.

Can I ask what brought up the more than 1 card question?

PainCorp Jun 29, 13 6:28 pm


Originally Posted by networkwasher (Post 21013296)
I'm open to more than one card for sure. I've got a couple Q3 rotating categories for gas coming up, so that will take priority over additional cards (if it becomes a factor), as I'll net more UR points this way. However, I can put about $2000 of manufactured spending on a card in a month and about $2000 of real spending per month, relatively comfortably.

Can I ask what brought up the more than 1 card question?

The 5x should be nothing compared to the 10x+ you get when meeting minimum spend.

Take a look around and check out the offers, you're the only one that knows what is best for you.


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