What's Your Credit Card Rewards Strategy?

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spammagnet
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Re: What's Your Credit Card Rewards Strategy?

Post by spammagnet » Wed Oct 11, 2017 6:03 pm

bluerafters wrote:
Wed Oct 11, 2017 10:47 am
You may find https://www.reddit.com/r/churning/ is entertaining.
Dear god... :shock:
That's not an endorsement. I was directing my comment more to spending a rainy day reading lots of traffic on the topic.

I am personally "churning" some accounts, but in a limited way. The term seems a bit exaggerated but the aggressive tactics of some practitioners could fit the description.

DrGrnTum
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Re: What's Your Credit Card Rewards Strategy?

Post by DrGrnTum » Thu Oct 12, 2017 10:57 am

For those that are over chase’s 5/24 rule and you want a shot at another Chase premium card, check out this Doctor of Credit post. There is no guarantees and he says YMMV. Your Mileage May Vary.

https://www.doctorofcredit.com/chase-br ... ghly-ymmv/

Also, right now chase is offering cash to open a regular checking account. If you are going to open a checking account anyway you could pick up some 1099 cash and you could see if you are eligible for one of the CCs

https://www.doctorofcredit.com/chase-50 ... le-branch/

I need to laugh. VictorF summed it up pretty well.
“I find it intriguing, too. But I also think that the bank-bonus/credit-card/travel-rewards game is intrinsically addictive, ….”

This is so true. I think I’ll go out and find me an AA group.

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VictoriaF
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Re: What's Your Credit Card Rewards Strategy?

Post by VictoriaF » Thu Oct 12, 2017 5:53 pm

DrGrnTum wrote:
Thu Oct 12, 2017 10:57 am
For those that are over chase’s 5/24 rule and you want a shot at another Chase premium card, check out this Doctor of Credit post. There is no guarantees and he says YMMV. Your Mileage May Vary.

https://www.doctorofcredit.com/chase-br ... ghly-ymmv/
As a credit-card addict on a 5/24 parole, I clicked on your link full of hope. Alas, there was nothing in for me. For unconscionable reasons, the nearest Chase branch is hundreds of miles away from D.C.
DrGrnTum wrote:
Thu Oct 12, 2017 10:57 am
I need to laugh. VictorF summed it up pretty well.
“I find it intriguing, too. But I also think that the bank-bonus/credit-card/travel-rewards game is intrinsically addictive, ….”

This is so true. I think I’ll go out and find me an AA group.
I think I should star in a film "VictorF and VictoriaF".

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

chrischris
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Re: What's Your Credit Card Rewards Strategy?

Post by chrischris » Thu Oct 12, 2017 6:06 pm

Does closing a credit card after 1 year impact my credit in a significant way? Am I better off keeping these reward cards open? My score is around 820, no debt other than mortgage

BeneIRA
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Re: What's Your Credit Card Rewards Strategy?

Post by BeneIRA » Thu Oct 12, 2017 6:40 pm

chrischris wrote:
Thu Oct 12, 2017 6:06 pm
Does closing a credit card after 1 year impact my credit in a significant way? Am I better off keeping these reward cards open? My score is around 820, no debt other than mortgage
Accounts stay on your credit report for 10 years. They do little to no harm under the current calculation for FICO. Of course, there are whispers of that calculation changing, but when it happens, then it will be time to re-evaluate.

lakpr
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Re: What's Your Credit Card Rewards Strategy?

Post by lakpr » Thu Oct 12, 2017 9:25 pm

VictoriaF wrote:
Thu Oct 12, 2017 5:53 pm
As a credit-card addict on a 5/24 parole, I clicked on your link full of hope. Alas, there was nothing in for me. For unconscionable reasons, the nearest Chase branch is hundreds of miles away from D.C.
New York is a mere 4 hours train ride away, for a lady who hiked 800 km over 40 days, surely 4 hours is a drop in the bucket? In additin to the Chase pot of gold at the end of the rainbow (train journey), there are other numerous sight seeing opportunities......

Or perhaps even a shorter 3 hour journey to Philly on the same train?

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VictoriaF
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Re: What's Your Credit Card Rewards Strategy?

Post by VictoriaF » Thu Oct 12, 2017 9:40 pm

lakpr wrote:
Thu Oct 12, 2017 9:25 pm
VictoriaF wrote:
Thu Oct 12, 2017 5:53 pm
As a credit-card addict on a 5/24 parole, I clicked on your link full of hope. Alas, there was nothing in for me. For unconscionable reasons, the nearest Chase branch is hundreds of miles away from D.C.
New York is a mere 4 hours train ride away, for a lady who hiked 800 km over 40 days, surely 4 hours is a drop in the bucket? In additin to the Chase pot of gold at the end of the rainbow (train journey), there are other numerous sight seeing opportunities......

Or perhaps even a shorter 3 hour journey to Philly on the same train?
You must be a clairvoyant: I will be coming to Philly by train next Wednesday for the Bogleheads meeting.

More generally, someone should organize tours around America for the Chase-deprived. They can be called "Choose your own Chase," or simply "Chasing Chase."

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

SRenaeP
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Re: What's Your Credit Card Rewards Strategy?

Post by SRenaeP » Fri Oct 13, 2017 11:39 am

chrischris wrote:
Thu Oct 12, 2017 6:06 pm
Does closing a credit card after 1 year impact my credit in a significant way? Am I better off keeping these reward cards open? My score is around 820, no debt other than mortgage
If we're talking just one card, probably not. I'm a light churner (hit the 5/24 wall) and my score has dropped to the 790s but I'm not too concerned about it.

-Steph

chrischris
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Re: What's Your Credit Card Rewards Strategy?

Post by chrischris » Fri Oct 13, 2017 7:15 pm

So you guys are closing your accounts after receiving the bonus to avoid the annual fee?

fareastwarriors
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Re: What's Your Credit Card Rewards Strategy?

Post by fareastwarriors » Fri Oct 13, 2017 7:25 pm

chrischris wrote:
Fri Oct 13, 2017 7:15 pm
So you guys are closing your accounts after receiving the bonus to avoid the annual fee?

Yes since you only get the big bonuses by signing up for new accounts. I'm plan to keep open my Chase Reserve, United Explorer, and Amex Blue Cash Preferred since I think I get enough benefits out of them to justify the annual fee.

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Lancelot
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Re: What's Your Credit Card Rewards Strategy?

Post by Lancelot » Fri Oct 13, 2017 10:31 pm

chrischris wrote:
Fri Oct 13, 2017 7:15 pm
So you guys are closing your accounts after receiving the bonus to avoid the annual fee?
I usually close out the account to avoid annual fees, but have had some success by calling the card issuer and asked for a retention offer to waive the fee.

My strategy is to collect airline miles and arbitrage them for business/first class seats. However, the banks are slowly putting more restrictions on churners, while the airlines are devaluing the value of FF miles. It's been great while it lasted :sharebeer
No Where for Very Long...

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Lancelot
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Re: What's Your Credit Card Rewards Strategy?

Post by Lancelot » Fri Oct 13, 2017 10:38 pm

beehappy wrote:
Tue Oct 10, 2017 10:04 pm
JBTX wrote:
Tue Oct 10, 2017 9:58 pm

https://thepointsguy.com/2017/09/new-no ... ited-card/
Other benefits of the United TravelBank Card include 25% back as a statement credit on food and beverage purchases on board United flights, auto rental coverage and trip cancellation/interruption insurance. There are also no foreign transaction fees, which is especially great considering this is a no-annual-fee card.
You may be able to just call and switch the card, unless you want to get a new card to get the upfront bonus.
Thanks. I saw that. But it doesn't seem to give mileage, rather cash that you can use for purchases on United. All I want is something that i can charge my monthly $.99 for Apple storage to and have that automatically add 1 mile to my mimeageplys account.
I have a no fee United Mileage Plus card for that very purpose. Its from Chase, 1 mile for every $2 spent, but Foreign transaction fees are charged.
No Where for Very Long...

beehappy
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Re: What's Your Credit Card Rewards Strategy?

Post by beehappy » Sat Oct 14, 2017 4:46 am

Lancelot wrote:
Fri Oct 13, 2017 10:38 pm
beehappy wrote:
Tue Oct 10, 2017 10:04 pm
JBTX wrote:
Tue Oct 10, 2017 9:58 pm

https://thepointsguy.com/2017/09/new-no ... ited-card/
Other benefits of the United TravelBank Card include 25% back as a statement credit on food and beverage purchases on board United flights, auto rental coverage and trip cancellation/interruption insurance. There are also no foreign transaction fees, which is especially great considering this is a no-annual-fee card.
You may be able to just call and switch the card, unless you want to get a new card to get the upfront bonus.
Thanks. I saw that. But it doesn't seem to give mileage, rather cash that you can use for purchases on United. All I want is something that i can charge my monthly $.99 for Apple storage to and have that automatically add 1 mile to my mimeageplys account.
I have a no fee United Mileage Plus card for that very purpose. Its from Chase, 1 mile for every $2 spent, but Foreign transaction fees are charged.
Thanks. I called Chase and got downgraded to this free version.

beehappy
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Re: What's Your Credit Card Rewards Strategy?

Post by beehappy » Sat Oct 14, 2017 4:49 am

Anybody know if spouse, who hasn't applied for cards but is authorized user on mine, is affected by my 5/24 count?
Last edited by beehappy on Sat Oct 14, 2017 7:40 am, edited 1 time in total.

lakpr
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Re: What's Your Credit Card Rewards Strategy?

Post by lakpr » Sat Oct 14, 2017 7:24 am

beehappy,

My understanding is that, Yes authorized users are affected by 5/24 rule. But only if the tradelines are actually opened in the last two years by the primary user.

If you make your spouse an authorized user on a card that you opened in 2011, say, that tradeline doesn't seem to count

There is a discussion on this topic on DoctorOfCredit website.

DrGrnTum
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Re: What's Your Credit Card Rewards Strategy?

Post by DrGrnTum » Sat Oct 14, 2017 8:41 am

beehappy wrote:
Sat Oct 14, 2017 4:49 am
Anybody know if spouse, who hasn't applied for cards but is authorized user on mine, is affected by my 5/24 count?

She can apply for Chase cards and most likely will not get auto approved. Seven to ten days later you may get a notice in the mail stating something to the effect that you were not approved because of to many opened accounts. There will be a phone number on the form which you could call to have them reconsider your application.

When you call, they will again state that you were disapproved because of to many open accounts. You can then point out that accounts that they are looking at are authorized user accounts. Depending on the phone rep, once you have pointed this out, you have a good chance of getting approved. They may ask you if your wife uses the cards and is she financially responsible for the accounts. If you say yes, you most likely will not get approved.

Sometimes you will get a phone rep. that no matter what you say will not budge. Wait a few days and call again. Chances are you will get a different phone rep.

Also, before you apply you can call all the credit card institutions and have them remove her as an authorized user. This may help your chances of getting approved.

I did this whole process for the last two cards that I got from Chase.
You can get the cards. It just depends on how much hassle you want to go through.

UpperNwGuy
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Re: What's Your Credit Card Rewards Strategy?

Post by UpperNwGuy » Sat Oct 14, 2017 11:31 am

My credit card rewards strategy is pretty simple:
— maintain a mix of cards that earn points, miles, flat-rate cash back, and category-based cash back
— use a 2% flat-rate cash back card as the baseline
— supplement the 2% card with cards that get 3% or better on travel, dining, gas, or groceries
— focus on only one transferable points program at a time
— focus on only one airline frequent flyer miles program at a time
— don't churn
— don't engage in manufactured spending
— don't pretend to have a business in order to obtain business credit cards
— avoid store cards
— never exceed 9 total credit cards, and aim to have 6
— pay them off monthly so that no balance is ever carried forward and no interest is ever charged

gvsucavie03
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Re: What's Your Credit Card Rewards Strategy?

Post by gvsucavie03 » Sat Oct 14, 2017 5:49 pm

UpperNwGuy wrote:
Sat Oct 14, 2017 11:31 am
My credit card rewards strategy is pretty simple:
— maintain a mix of cards that earn points, miles, flat-rate cash back, and category-based cash back
— use a 2% flat-rate cash back card as the baseline
— supplement the 2% card with cards that get 3% or better on travel, dining, gas, or groceries
— focus on only one transferable points program at a time
— focus on only one airline frequent flyer miles program at a time
— don't churn
— don't engage in manufactured spending
— don't pretend to have a business in order to obtain business credit cards
— avoid store cards
— never exceed 9 total credit cards, and aim to have 6
— pay them off monthly so that no balance is ever carried forward and no interest is ever charged
Why 6 cards and no more than 9??

solobuildingblogs
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Re: What's Your Credit Card Rewards Strategy?

Post by solobuildingblogs » Sat Oct 14, 2017 5:57 pm

Funny about being far from a chase branch, there was a recent article in WSJ about how some millennials drove six hours to get to the nearest Chase for the in brach only sign up bonus of 100K points on the Chase Sapphire reserve... (on internet it was 50 or 75K)

Yes, I was approved for a Chase sapphire preferred as a in branch pre approval. It was my third signup bonus for the card but I'm gonna keep it rather than churn it so I can transfer my business Chase Ink UR points to United.

Chase sapphire and mileage plus also given PRIMARY car rental insurance which is a big plus.

And especially if you're self employed or have a lot of investment income you can easily meet signup bonuses by paying IRS and state estimated taxes and taxes due on line. The 1.9% fee is easily exceeded by the signup bonus which can be 10-30% back.

BeneIRA
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Re: What's Your Credit Card Rewards Strategy?

Post by BeneIRA » Sat Oct 14, 2017 8:25 pm

beehappy wrote:
Sat Oct 14, 2017 4:49 am
Anybody know if spouse, who hasn't applied for cards but is authorized user on mine, is affected by my 5/24 count?
What I did: Secure Message Chase and ask them to remove your Spouse as an authorized user. Chase will SM you back and tell you that your spouse has been taken off. Reply to them and tell them you want the card removed from your spouse's credit report. They will send you to another department, then SM you a form for you to print out, have your spouse sign, and mail in. Complete this for each card your spouse is an authorizes user on that is less than two years old. Mail the forms all in together to Chase. In 1 to 2 weeks, Chase will remove the accounts from your spouse's credit reports. Apply for 5/24 cards.

UpperNwGuy
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Re: What's Your Credit Card Rewards Strategy?

Post by UpperNwGuy » Sat Oct 14, 2017 9:25 pm

gvsucavie03 wrote:
Sat Oct 14, 2017 5:49 pm
Why 6 cards and no more than 9??
Because once your number of credit cards hits the double digits, you've lost the simplicity. There's really no point to having 10 or more cards. You'd be a mile wide and an inch deep. A fixed amount of spending spread across too many cards would accumulate rewards more slowly on each card and make redemptions more difficult.

drk
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Re: What's Your Credit Card Rewards Strategy?

Post by drk » Sat Oct 14, 2017 11:25 pm

UpperNwGuy wrote:
Sat Oct 14, 2017 9:25 pm
Because once your number of credit cards hits the double digits, you've lost the simplicity. There's really no point to having 10 or more cards. You'd be a mile wide and an inch deep. A fixed amount of spending spread across too many cards would accumulate rewards more slowly on each card and make redemptions more difficult.
Eh? Who said anything about using ten or more cards? They just sit there until it's time for their semi-annual purchase to keep the account alive. The point of having them is to anchor your average age of account and help hold down your credit utilization.

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VictoriaF
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Re: What's Your Credit Card Rewards Strategy?

Post by VictoriaF » Sun Oct 15, 2017 12:22 am

drk wrote:
Sat Oct 14, 2017 11:25 pm
Eh? Who said anything about using ten or more cards? They just sit there until it's time for their semi-annual purchase to keep the account alive. The point of having them is to anchor your average age of account and help hold down your credit utilization.
I have several cards that have been sitting without purchases for several years. Do I have to enliven them?

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

gvsucavie03
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Re: What's Your Credit Card Rewards Strategy?

Post by gvsucavie03 » Sun Oct 15, 2017 6:20 am

UpperNwGuy wrote:
Sat Oct 14, 2017 9:25 pm
gvsucavie03 wrote:
Sat Oct 14, 2017 5:49 pm
Why 6 cards and no more than 9??
Because once your number of credit cards hits the double digits, you've lost the simplicity. There's really no point to having 10 or more cards. You'd be a mile wide and an inch deep. A fixed amount of spending spread across too many cards would accumulate rewards more slowly on each card and make redemptions more difficult.
9 cards is simplicity, but 10 is not? :wink:

I regularly use 3 (Citi Double Cash, Amex BCP, Penfed 5% Gas), Chase Freedom picks up the grocery category for a quarter. We own about 12 cards together but the others are all $0 (milked bonuses) and sit in a file drawer.

Honestly, simplicity would be no credit cards. It is very difficult to budget and reconcile with them. I'm not absolutely sure the perks outweigh the complexity.

drk
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Re: What's Your Credit Card Rewards Strategy?

Post by drk » Sun Oct 15, 2017 9:32 am

VictoriaF wrote:
Sun Oct 15, 2017 12:22 am
drk wrote:
Sat Oct 14, 2017 11:25 pm
Eh? Who said anything about using ten or more cards? They just sit there until it's time for their semi-annual purchase to keep the account alive. The point of having them is to anchor your average age of account and help hold down your credit utilization.
I have several cards that have been sitting without purchases for several years. Do I have to enliven them?

Victoria
I assume it's YMMV, but I've read about banks' closing dormant accounts after extended periods of time with no charges. I would assume that this is more likely to happen for customers with a single account with an issuer, though. Between Apple Pay and Amazon reloads, it's so easy to make small purchases that I avoid tempting fate.

spammagnet
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Re: What's Your Credit Card Rewards Strategy?

Post by spammagnet » Sun Oct 15, 2017 9:32 am

VictoriaF wrote:
Sun Oct 15, 2017 12:22 am
I have several cards that have been sitting without purchases for several years. Do I have to enliven them?
Chase closed an inactive account held by DW, without warning. It was her oldest account, overall.

If you want to keep the accounts open (for average age of account, if nothing else) I suggest you route a regular subscription or bill through them. Set them to auto-pay to reduce management burden. It 's still a pain.

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VictoriaF
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Re: What's Your Credit Card Rewards Strategy?

Post by VictoriaF » Sun Oct 15, 2017 9:56 am

spammagnet wrote:
Sun Oct 15, 2017 9:32 am
VictoriaF wrote:
Sun Oct 15, 2017 12:22 am
I have several cards that have been sitting without purchases for several years. Do I have to enliven them?
Chase closed an inactive account held by DW, without warning. It was her oldest account, overall.

If you want to keep the accounts open (for average age of account, if nothing else) I suggest you route a regular subscription or bill through them. Set them to auto-pay to reduce management burden. It 's still a pain.
Thanks. I should do it.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

dbr
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Re: What's Your Credit Card Rewards Strategy?

Post by dbr » Sun Oct 15, 2017 10:01 am

VictoriaF wrote:
Sun Oct 15, 2017 9:56 am
spammagnet wrote:
Sun Oct 15, 2017 9:32 am
VictoriaF wrote:
Sun Oct 15, 2017 12:22 am
I have several cards that have been sitting without purchases for several years. Do I have to enliven them?
Chase closed an inactive account held by DW, without warning. It was her oldest account, overall.

If you want to keep the accounts open (for average age of account, if nothing else) I suggest you route a regular subscription or bill through them. Set them to auto-pay to reduce management burden. It 's still a pain.
Thanks. I should do it.

Victoria
I keep a record of use of cards just to make sure of staying active where I want to be. That record also keeps track of possible expiration of points.

A person is welcome to keep or close as many cards as they do or don't want to deal with.

spammagnet
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Re: What's Your Credit Card Rewards Strategy?

Post by spammagnet » Sun Oct 15, 2017 10:22 am

dbr wrote:
Sun Oct 15, 2017 10:01 am
spammagnet wrote:
Sun Oct 15, 2017 9:32 am
If you want to keep the accounts open ...
... A person is welcome to keep or close as many cards as they do or don't want to deal with.
Which is why I wrote "If you want to ...". It's somewhat of a pain to keep track of a lot. I keep dormant accounts open only if they're old and contribute to a desirable average age of accounts, or if they have useful features that I use occasionally.

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VictoriaF
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Re: What's Your Credit Card Rewards Strategy?

Post by VictoriaF » Sun Oct 15, 2017 10:34 am

dbr wrote:
Sun Oct 15, 2017 10:01 am
VictoriaF wrote:
Sun Oct 15, 2017 9:56 am
spammagnet wrote:
Sun Oct 15, 2017 9:32 am
VictoriaF wrote:
Sun Oct 15, 2017 12:22 am
I have several cards that have been sitting without purchases for several years. Do I have to enliven them?
Chase closed an inactive account held by DW, without warning. It was her oldest account, overall.

If you want to keep the accounts open (for average age of account, if nothing else) I suggest you route a regular subscription or bill through them. Set them to auto-pay to reduce management burden. It 's still a pain.
Thanks. I should do it.

Victoria
I keep a record of use of cards just to make sure of staying active where I want to be. That record also keeps track of possible expiration of points.

A person is welcome to keep or close as many cards as they do or don't want to deal with.
Yes, of course.

I have a card similar to spammagnet's wife's. It's a Chase card, one of my oldest cards, and I have not used it for several years. I have been assuming that Chase would give me an advanced warning before closing it. Now, I think that I should preserve it proactively.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

spammagnet
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Re: What's Your Credit Card Rewards Strategy?

Post by spammagnet » Sun Oct 15, 2017 11:03 am

VictoriaF wrote:
Sun Oct 15, 2017 10:34 am
... I have a card similar to spammagnet's wife's. It's a Chase card, one of my oldest cards, and I have not used it for several years. I have been assuming that Chase would give me an advanced warning before closing it. ...
I should add that, not only was there no warning, there was no recourse. They would not consider reopening it without a new application, and it would not be reopening, anyway. It would be a new account. The new application would cost a hard pull on her credit report and would not benefit her average age of accounts. In fact, it would make it worse.

I read somewhere that closed accounts stay on your report for awhile. If true, the effect of closing on average age would be eventual, but not immediate.

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VictoriaF
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Re: What's Your Credit Card Rewards Strategy?

Post by VictoriaF » Sun Oct 15, 2017 1:12 pm

spammagnet wrote:
Sun Oct 15, 2017 11:03 am
VictoriaF wrote:
Sun Oct 15, 2017 10:34 am
... I have a card similar to spammagnet's wife's. It's a Chase card, one of my oldest cards, and I have not used it for several years. I have been assuming that Chase would give me an advanced warning before closing it. ...
I should add that, not only was there no warning, there was no recourse. They would not consider reopening it without a new application, and it would not be reopening, anyway. It would be a new account. The new application would cost a hard pull on her credit report and would not benefit her average age of accounts. In fact, it would make it worse.

I read somewhere that closed accounts stay on your report for awhile. If true, the effect of closing on average age would be eventual, but not immediate.
I decided not to procrastinate and used the card for a $8.50 purchase on Amazon. It was also an excuse to buy a book I wanted.

Thank you for alerting me to the danger to my old card.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

Mudpuppy
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Re: What's Your Credit Card Rewards Strategy?

Post by Mudpuppy » Sun Oct 15, 2017 1:14 pm

gvsucavie03 wrote:
Sat Oct 14, 2017 5:49 pm
Why 6 cards and no more than 9??
Side note: This question reminds me of an old computer security paper titled "Why 6?" which sought to answer why an early intrusion detection system used 6 attributes for its anomaly detection algorithm. And the answer was essentially the same as here: 6 was a balance between enough options for customization, but not so many options as to be overwhelming.
spammagnet wrote:
Sun Oct 15, 2017 9:32 am
VictoriaF wrote:
Sun Oct 15, 2017 12:22 am
I have several cards that have been sitting without purchases for several years. Do I have to enliven them?
Chase closed an inactive account held by DW, without warning. It was her oldest account, overall.

If you want to keep the accounts open (for average age of account, if nothing else) I suggest you route a regular subscription or bill through them. Set them to auto-pay to reduce management burden. It 's still a pain.
I've had similar closures of older cards without warning. For most of them, I just let expire and don't worry too much about the average age of accounts. One of my oldest cards is Discover and that card still has regular relevance depending on the 5% categories of that quarter. But if they don't have relevance, I don't bother to keep them alive just for the average age of account metric.

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VictoriaF
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Re: What's Your Credit Card Rewards Strategy?

Post by VictoriaF » Sun Oct 15, 2017 1:18 pm

Mudpuppy wrote:
Sun Oct 15, 2017 1:14 pm
I've had similar closures of older cards without warning. For most of them, I just let expire and don't worry too much about the average age of accounts. One of my oldest cards is Discover and that card still has regular relevance depending on the 5% categories of that quarter. But if they don't have relevance, I don't bother to keep them alive just for the average age of account metric.
I don't own real estate and never had a mortgage. I am driving a 20-old car and have not had a car loan for many years (since well before my current car). Thus, I am trying to keep my credit score high using any other tools available to me.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)

hale2
Posts: 88
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Re: What's Your Credit Card Rewards Strategy?

Post by hale2 » Sun Oct 15, 2017 2:44 pm

VictoriaF wrote:
Sun Oct 15, 2017 1:12 pm
spammagnet wrote:
Sun Oct 15, 2017 11:03 am
VictoriaF wrote:
Sun Oct 15, 2017 10:34 am
... I have a card similar to spammagnet's wife's. It's a Chase card, one of my oldest cards, and I have not used it for several years. I have been assuming that Chase would give me an advanced warning before closing it. ...
I should add that, not only was there no warning, there was no recourse. They would not consider reopening it without a new application, and it would not be reopening, anyway. It would be a new account. The new application would cost a hard pull on her credit report and would not benefit her average age of accounts. In fact, it would make it worse.

I read somewhere that closed accounts stay on your report for awhile. If true, the effect of closing on average age would be eventual, but not immediate.
I decided not to procrastinate and used the card for a $8.50 purchase on Amazon. It was also an excuse to buy a book I wanted.

Thank you for alerting me to the danger to my old card.

Victoria
Good move. Last month Chase canceled my freedom card for non-use (it had been 14 months since I used it).

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Lancelot
Posts: 141
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Location: Philippines

Re: What's Your Credit Card Rewards Strategy?

Post by Lancelot » Sun Oct 15, 2017 6:25 pm

beehappy wrote:
Sat Oct 14, 2017 4:46 am


Thanks. I called Chase and got downgraded to this free version.
Happy to help. I've had the card for years, it was my first sign up bonus. Thirty thousand miles after $1,000 spend :)
No Where for Very Long...

2015
Posts: 782
Joined: Mon Feb 10, 2014 2:32 pm

Re: What's Your Credit Card Rewards Strategy?

Post by 2015 » Mon Oct 16, 2017 9:54 am

hale2 wrote:
Sun Oct 15, 2017 2:44 pm
VictoriaF wrote:
Sun Oct 15, 2017 1:12 pm
spammagnet wrote:
Sun Oct 15, 2017 11:03 am
VictoriaF wrote:
Sun Oct 15, 2017 10:34 am
... I have a card similar to spammagnet's wife's. It's a Chase card, one of my oldest cards, and I have not used it for several years. I have been assuming that Chase would give me an advanced warning before closing it. ...
I should add that, not only was there no warning, there was no recourse. They would not consider reopening it without a new application, and it would not be reopening, anyway. It would be a new account. The new application would cost a hard pull on her credit report and would not benefit her average age of accounts. In fact, it would make it worse.

I read somewhere that closed accounts stay on your report for awhile. If true, the effect of closing on average age would be eventual, but not immediate.
I decided not to procrastinate and used the card for a $8.50 purchase on Amazon. It was also an excuse to buy a book I wanted.

Thank you for alerting me to the danger to my old card.

Victoria
Good move. Last month Chase canceled my freedom card for non-use (it had been 14 months since I used it).
Annually, I charge one of my daily coffee's to each of the cards I don't use to keep them active. It's painless, actually.

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flamesabers
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Re: What's Your Credit Card Rewards Strategy?

Post by flamesabers » Mon Oct 16, 2017 10:53 am

hale2 wrote:
Sun Oct 15, 2017 2:44 pm
Last month Chase canceled my freedom card for non-use (it had been 14 months since I used it).
For cards I don't use I set a recurring semi-annual reminder on my Google calendar to make a small purchase on them. For the small purchases I like to buy some extra text messages or data for my prepaid cell phone.

spammagnet
Posts: 679
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Re: What's Your Credit Card Rewards Strategy?

Post by spammagnet » Mon Oct 16, 2017 12:48 pm

2015 wrote:
Mon Oct 16, 2017 9:54 am
Annually, I charge one of my daily coffee's to each of the cards I don't use to keep them active. It's painless, actually.
The annoyance to me is too many cards in my wallet and reconciling the accounts.

Of course, nothing requires that I make any effort at all.

Spirit Rider
Posts: 6226
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Re: What's Your Credit Card Rewards Strategy?

Post by Spirit Rider » Mon Oct 16, 2017 1:06 pm

Don't carry them all in your wallet. I carry 2 primary, rotate 1-2 per month/quarter. Only have to reconcile 3-4 any given month

Jack FFR1846
Posts: 5611
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Re: What's Your Credit Card Rewards Strategy?

Post by Jack FFR1846 » Mon Oct 16, 2017 1:31 pm

Less than 9 :shock:

Let me think....4 cards for "low balance forgiveness" which I keep in a separate pouch and use once a month together to buy gas (either $0.99 per card or $1.99 per card).
4 cards up for tradelines (some overlap with above for when no tradeline has been sold)
Core cards for rewards, including rotating....that's another 4
Old cards that hold age of credit and churned cards that I simply haven't cancelled (probably 6)
Store cards opened to get big discounts (Dick's comes to mind, having saved several hundred dollars on a kayak and paddles)....
Amazon cards because it seems that I'm always getting a pop up to save $40 by applying for yet another amazon card (5).
On average, 1 card to get spend for sign on bonus.

Lots of sock drawered cards above. I only really actively carry 2 cards at a time. The rotating categories determine what those cards are.
Bogle: Smart Beta is stupid

DiMAn0684
Posts: 74
Joined: Fri Oct 28, 2011 10:27 am

Re: What's Your Credit Card Rewards Strategy?

Post by DiMAn0684 » Mon Oct 16, 2017 4:34 pm

Jack FFR1846 wrote:
Mon Oct 16, 2017 1:31 pm
Amazon cards because it seems that I'm always getting a pop up to save $40 by applying for yet another amazon card (5).
$40 savings for opening CC accounts is too low even if you're not collecting travel rewards points. Plenty of cards that could have gotten you $500+ per card are available.

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Brantley
Posts: 215
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Re: What's Your Credit Card Rewards Strategy?

Post by Brantley » Mon Oct 16, 2017 4:47 pm

Wife just opened up two Southwest cards with 60,000 point sign on bonuses each. I plan to hit the spend in January of 2018, and receive the Companion pass that allows a second passenger (me) to fly free for two years (2018 and 2019). I also have previously signed up for several chase cards for both me and my wife for both sign on bonuses and perks (Chase Freedom, Sapphire Preferred, Sapphire Reserve). We earn 5% back with the Chase freedom on quarterly rotating categories, and 3% back on restaurants and travel with the Sapphire Reserve. We transfer all chase points to the Sapphire Reserve which are redeemed at 150% for travel.

We have a fair amount of points built up on the Sapphire Reserve, and plan to use those points in 2018 and 2019 for travel through Southwest. We would use Ultimate Rewards points to book the initial flight (over the phone for Southwest) with a redemption rate of 150%, and then add me on as a companion for the flight. Should have more or less free travel for two years with this method. Also, hoping to go to Hawaii next year through Southwest.

I also have Starwoods Points from a previous sign on bonus through SPG that we hope to use for some of this travel.
~Brantley

DrGrnTum
Posts: 14
Joined: Sat Oct 24, 2015 11:22 am

Re: What's Your Credit Card Rewards Strategy?

Post by DrGrnTum » Mon Oct 16, 2017 5:47 pm

Brantley wrote:
Mon Oct 16, 2017 4:47 pm
Wife just opened up two Southwest cards with 60,000 point sign on bonuses each. I plan to hit the spend in January of 2018, and receive the Companion pass that allows a second passenger (me) to fly free for two years (2018 and 2019). I also have previously signed up for several chase cards for both me and my wife for both sign on bonuses and perks (Chase Freedom, Sapphire Preferred, Sapphire Reserve). We earn 5% back with the Chase freedom on quarterly rotating categories, and 3% back on restaurants and travel with the Sapphire Reserve. We transfer all chase points to the Sapphire Reserve which are redeemed at 150% for travel.

We have a fair amount of points built up on the Sapphire Reserve, and plan to use those points in 2018 and 2019 for travel through Southwest. We would use Ultimate Rewards points to book the initial flight (over the phone for Southwest) with a redemption rate of 150%, and then add me on as a companion for the flight. Should have more or less free travel for two years with this method. Also, hoping to go to Hawaii next year through Southwest.

I also have Starwoods Points from a previous sign on bonus through SPG that we hope to use for some of this travel.
In the same method that you just described, my wife and I will be getting that same Southwest Companion Pass. We will be using it to travel to different locations in the continental US and Hawaii. We are also going to use it as way to defray the cost for trips to Europe.

On the blogs sites there are always announcements of bargain flights to Europe. Most of the time these fights are from specific cities to and from Europe. We will use the Southwest Rapid Reward points in conjunction with the Companion Pass to travel to the cities here in the US. From there we will then take the bargain flights to Europe.

I love this game.

Yukon
Posts: 111
Joined: Wed Jan 23, 2008 8:10 am

Re: What's Your Credit Card Rewards Strategy?

Post by Yukon » Wed Oct 18, 2017 4:20 am

DrGrnTum wrote:
Mon Oct 16, 2017 5:47 pm

On the blogs sites there are always announcements of bargain flights to Europe. Most of the time these fights are from specific cities to and from Europe.
Which blog is your favorite for bargain flight announcements to Europe?
Don't Work Forever.

DrGrnTum
Posts: 14
Joined: Sat Oct 24, 2015 11:22 am

Re: What's Your Credit Card Rewards Strategy?

Post by DrGrnTum » Wed Oct 18, 2017 7:26 am

Yukon wrote:
Wed Oct 18, 2017 4:20 am
DrGrnTum wrote:
Mon Oct 16, 2017 5:47 pm

On the blogs sites there are always announcements of bargain flights to Europe. Most of the time these fights are from specific cities to and from Europe.
Which blog is your favorite for bargain flight announcements to Europe?
https://milesfeed.com/

I usually just skim the topics. You can quickly identify the topics that you are interested in.

beehappy
Posts: 59
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Re: What's Your Credit Card Rewards Strategy?

Post by beehappy » Wed Oct 18, 2017 10:33 am

I need help figuring out if I should ask Fidelity to lower my credit limit. I applied for their 2% cash back card about 2 weeks ago, and the approval finally came through and it's for $50k. I have no need for that high a limit, and am s bit concerned that it'd lock up my credit and mess with me getting other cards (got my eyes on citi double cash and BofA premium). Should I ask them to lower it? I doubt I'll spend more than $1k/month to this card, and will probably ditch it as soon as I get BofA premium and make platinum honors in a few months.

lakpr
Posts: 211
Joined: Fri Mar 18, 2011 9:59 am

Re: What's Your Credit Card Rewards Strategy?

Post by lakpr » Wed Oct 18, 2017 10:53 am

beehappy wrote:
Wed Oct 18, 2017 10:33 am
I need help figuring out if I should ask Fidelity to lower my credit limit. I applied for their 2% cash back card about 2 weeks ago, and the approval finally came through and it's for $50k. I have no need for that high a limit, and am s bit concerned that it'd lock up my credit and mess with me getting other cards (got my eyes on citi double cash and BofA premium). Should I ask them to lower it? I doubt I'll spend more than $1k/month to this card, and will probably ditch it as soon as I get BofA premium and make platinum honors in a few months.
beehappy,

Within the credit cards world, high limits beget higher limits.
Higher limits, of course, would lower the utilization percent and in turn boosts your credit score.

Why would you want to intentionally lower your credit limit? Yes I did read that you don't need that much limit, but it is always better to "have and not need" than "not have and need" it.

Contrary to what you think, the high limit will only help you not hurt you in getting other cards.
Also curious as to why you will need Citi Double Cash, as the rewards are identical between the two cards, and wherever you could use Citi card you will also be able to use the Fidelity card ... there are more places accepting Visa than a Mastercard.

michaeljc70
Posts: 1831
Joined: Thu Oct 15, 2015 3:53 pm

Re: What's Your Credit Card Rewards Strategy?

Post by michaeljc70 » Wed Oct 18, 2017 11:01 am

chrischris wrote:
Fri Oct 13, 2017 7:15 pm
So you guys are closing your accounts after receiving the bonus to avoid the annual fee?
I put it on my calendar out 11 months to remind me to close the account. I don't close them typically right away due to other benefits like lounge access, free baggage check, etc.

Mudpuppy
Posts: 5345
Joined: Sat Aug 27, 2011 2:26 am
Location: Sunny California

Re: What's Your Credit Card Rewards Strategy?

Post by Mudpuppy » Wed Oct 18, 2017 11:03 am

beehappy wrote:
Wed Oct 18, 2017 10:33 am
I need help figuring out if I should ask Fidelity to lower my credit limit. I applied for their 2% cash back card about 2 weeks ago, and the approval finally came through and it's for $50k. I have no need for that high a limit, and am s bit concerned that it'd lock up my credit and mess with me getting other cards (got my eyes on citi double cash and BofA premium). Should I ask them to lower it? I doubt I'll spend more than $1k/month to this card, and will probably ditch it as soon as I get BofA premium and make platinum honors in a few months.
I don't personally think a high limit will harm you when you try to apply for credit cards at different issuers. Usually it's mortgages, and sometimes car loans, that consider the existing limits at other banks when making an application decision.

Perhaps what you're thinking of is when someone tries to get another card at the same issuer when they already have a lot of credit at that particular company. In those cases, they sometimes need to lower the limits on the existing cards at that issuer to "free up" credit for the new card. For example, say you have 3 Chase cards with a combined limit of $60k and you go to apply for a new Chase card. Chase might ask you to lower the combined limit on the existing Chase cards to $50k and then issue a $10k limit on the new card.

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