You're following the financial industry training right down the line. You should receive a gold star, not criticism. You should keep the approximate number of cards you have now and change them around now and then especially when an special offer appeals to your sense of adventure. As you grow older and your income expands you're supposed to increase the number of cards, the churning of the cards to chase the special offers and of course, increase your level of spending. The financial industry has a very high profit margin, stocks no inventory and has very little brick and motor presence. They need to keep the system moving and your participation at just over the level you can afford will continue to be rewarded with appropriate credit scores and continuing sales contacts and reminders of the need for you to follow instructions. You should be applauded for your participation and especially for recognition early on that this is your place in life and the path toward your happiness. And remember, the offers for new cards will help you to beat the system so pay attention and be prepared to act.
Closing/Opening Credit Cards
- Thread starter GenesisGuy70
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Originally Posted By: expat
For what it's worth. I live on my CC 99.9% of what I buy and pay go's on it.
I only use one card*, the one that gives me the highest payback.
My CC bill is paid in full, on the due date, every month, by standing order by my financial institution.
I pay no fees.
*I do keep a backup card, in case of loss or emergency.
This.
Exactly what I do. I have a backup plus and American express as a second backup There is no expiration date so I don't have to worry about getting a new card every 4 years.
The paradigm for fraud is changing rapidly. IMHO too many cards puts you at increased risk of fraud even now and in the future its gonna get worse. You can't "Just let them fade away" bc every 4 years a new one is in the mail heading to you. Not a lecture, but having more than 3 cards is IMHO a bad idea.
But really for me..I don't care if I have a credit score of zero. Just not an issue in my life.
For what it's worth. I live on my CC 99.9% of what I buy and pay go's on it.
I only use one card*, the one that gives me the highest payback.
My CC bill is paid in full, on the due date, every month, by standing order by my financial institution.
I pay no fees.
*I do keep a backup card, in case of loss or emergency.
This.
Exactly what I do. I have a backup plus and American express as a second backup There is no expiration date so I don't have to worry about getting a new card every 4 years.
The paradigm for fraud is changing rapidly. IMHO too many cards puts you at increased risk of fraud even now and in the future its gonna get worse. You can't "Just let them fade away" bc every 4 years a new one is in the mail heading to you. Not a lecture, but having more than 3 cards is IMHO a bad idea.
But really for me..I don't care if I have a credit score of zero. Just not an issue in my life.
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Using Mint.com is great for tracking your CC purchases and making a budget. Much faster to catch unauthorized activity vs looking at each CC account periodically.
You're better off [security-wise] spending the time to use better passwords for your accounts or something like Keepass or Lastpass as CCs are zero fraud liability. Another reason to never use a pure debit card (make sure it is a VISA or MC debit and has the same protections as a CC) for anything other than ATM use.
You're better off [security-wise] spending the time to use better passwords for your accounts or something like Keepass or Lastpass as CCs are zero fraud liability. Another reason to never use a pure debit card (make sure it is a VISA or MC debit and has the same protections as a CC) for anything other than ATM use.
Originally Posted By: surfstar
Using Mint.com is great for tracking your CC purchases and making a budget. Much faster to catch unauthorized activity vs looking at each CC account periodically.
You're better off [security-wise] spending the time to use better passwords for your accounts or something like Keepass or Lastpass as CCs are zero fraud liability. Another reason to never use a pure debit card (make sure it is a VISA or MC debit and has the same protections as a CC) for anything other than ATM use.
I love Mint! Great app.
I think I will wait until I graduate and my income goes up significantly before I do anything.
Using Mint.com is great for tracking your CC purchases and making a budget. Much faster to catch unauthorized activity vs looking at each CC account periodically.
You're better off [security-wise] spending the time to use better passwords for your accounts or something like Keepass or Lastpass as CCs are zero fraud liability. Another reason to never use a pure debit card (make sure it is a VISA or MC debit and has the same protections as a CC) for anything other than ATM use.
I love Mint! Great app.
I think I will wait until I graduate and my income goes up significantly before I do anything.
You only really need two, a Visa/Mastercard and an Amex/Discover.
I have a Chase Sapphire Preferred and a Discover, I have not used the Discover in ages. A lot of places don't take Discover which is a shame they are very nice company to deal with.
I prefer cards that I can convert the points to airline miles, typically I fly for free which is nice. Most CC's return 1%-1.5% back to you one way or another. The only difference is how flexible they are. Chase allows me to simply book tickets online and charge them than apply the points. Or I can book threw them and they sometimes give you a nice bonus for doing that.
If you own a house or plan on buying a house the Lowes Amex is a great deal. 5% off all purchases at Lowes, $20 delivery, and a decent points system. Plus its a regular Amex and can be used anywhere, not a silly Lowes only card. No annual fee and if your a good customer Amex will set your limit as high as you need.
I have a Chase Sapphire Preferred and a Discover, I have not used the Discover in ages. A lot of places don't take Discover which is a shame they are very nice company to deal with.
I prefer cards that I can convert the points to airline miles, typically I fly for free which is nice. Most CC's return 1%-1.5% back to you one way or another. The only difference is how flexible they are. Chase allows me to simply book tickets online and charge them than apply the points. Or I can book threw them and they sometimes give you a nice bonus for doing that.
If you own a house or plan on buying a house the Lowes Amex is a great deal. 5% off all purchases at Lowes, $20 delivery, and a decent points system. Plus its a regular Amex and can be used anywhere, not a silly Lowes only card. No annual fee and if your a good customer Amex will set your limit as high as you need.
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Originally Posted By: surfstar
Using Mint.com is great for tracking your CC purchases and making a budget. Much faster to catch unauthorized activity vs looking at each CC account periodically.
You're better off [security-wise] spending the time to use better passwords for your accounts or something like Keepass or Lastpass as CCs are zero fraud liability. Another reason to never use a pure debit card (make sure it is a VISA or MC debit and has the same protections as a CC) for anything other than ATM use.
I stopped using MINT just because I was not comfortable giving MINT so much confidential information such as credit card numbers, logon userid/pw.
I use LASTPASS and its a great tool to hold passwords, but they are all encrypted on my computer. I also have a YUBICON setup for LASTPASS. MINT has to know and store all the real info for your bank and credit cards.
Using Mint.com is great for tracking your CC purchases and making a budget. Much faster to catch unauthorized activity vs looking at each CC account periodically.
You're better off [security-wise] spending the time to use better passwords for your accounts or something like Keepass or Lastpass as CCs are zero fraud liability. Another reason to never use a pure debit card (make sure it is a VISA or MC debit and has the same protections as a CC) for anything other than ATM use.
I stopped using MINT just because I was not comfortable giving MINT so much confidential information such as credit card numbers, logon userid/pw.
I use LASTPASS and its a great tool to hold passwords, but they are all encrypted on my computer. I also have a YUBICON setup for LASTPASS. MINT has to know and store all the real info for your bank and credit cards.
We have a Chase Freedom Visa and a Discover that we use quite a bit. I keep current on whatever is 5% cashback on both and we use either one to maximize that. So sometimes, we're using the Visa for nearly everything and sometimes, we're using the Discover for nearly everything.
APRs or interest rates are a moot point for us; our credit card bills are paid in full each month, and the only balance we have is what has accrued that month before the bill comes.
We get at least $10-15 in rewards each month on both cards -- that's quite a bit of money over time. Both are linked to our Amazon Prime account, so that money often goes to incidentals we buy on Amazon. For example, I recently bought a Belkin MiniDisplayport-to-VGA adapter for my laptop on Amazon. I used reward cash from one of our cards, so I was zero out of pocket on it.
APRs or interest rates are a moot point for us; our credit card bills are paid in full each month, and the only balance we have is what has accrued that month before the bill comes.
We get at least $10-15 in rewards each month on both cards -- that's quite a bit of money over time. Both are linked to our Amazon Prime account, so that money often goes to incidentals we buy on Amazon. For example, I recently bought a Belkin MiniDisplayport-to-VGA adapter for my laptop on Amazon. I used reward cash from one of our cards, so I was zero out of pocket on it.
Keep your oldest account open, assuming it is a no annual fee account. That way your oldest account in good standing gets older as time goes on.
Why open a new card? Go to Barclay or Chase's website and find the better cards they offer that you want. Contact them, and switch your current card over to the new one. I've done this a couple times (with different companies) and my original account open date stayed the same, but I upgraded the card to a better rewards program that they offered. Seems like it'll be the best of both world for what you're trying to do.
Credit score is only important to people who are in debt and who are actively are acquiring as much debt as possible.
Close out all credit cards except 3-4 and make sure you have at least one flavor of each of these cards (all paying cashback) - 1)Amex, 2)Visa, 3) Mastercard, Make sure one of them does not charge for international currency payments (like the Cap 1 card) in case you travel.
Put 99.9% of all purchases and expense on these cash back credit cards and pay off total ever month. Cut up and throw away any debit cards they are junk and anti-consumer.
Collect cash back and never pay interest. Pay in cash for cars and only go into debt to acquire an appreciating asset like a house. And make sure you have a big down payment first and buy a house that you can pay off in 10-15 years max. That is how to build wealth, security, and freedom. Any other plan is a plan to be poor and a wage slave forever.
Close out all credit cards except 3-4 and make sure you have at least one flavor of each of these cards (all paying cashback) - 1)Amex, 2)Visa, 3) Mastercard, Make sure one of them does not charge for international currency payments (like the Cap 1 card) in case you travel.
Put 99.9% of all purchases and expense on these cash back credit cards and pay off total ever month. Cut up and throw away any debit cards they are junk and anti-consumer.
Collect cash back and never pay interest. Pay in cash for cars and only go into debt to acquire an appreciating asset like a house. And make sure you have a big down payment first and buy a house that you can pay off in 10-15 years max. That is how to build wealth, security, and freedom. Any other plan is a plan to be poor and a wage slave forever.
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Originally Posted By: sicko
Why open a new card? Go to Barclay or Chase's website and find the better cards they offer that you want. Contact them, and switch your current card over to the new one. I've done this a couple times (with different companies) and my original account open date stayed the same, but I upgraded the card to a better rewards program that they offered. Seems like it'll be the best of both world for what you're trying to do.
Great idea. Funny you mention that, Capital One reached out to me a few months ago and offered to "upgrade" me to their 1.5% cashback Quicksilver Card, which I gladly accepted.
I'll email Chase and Barclay and see if they will offer the same.
Why open a new card? Go to Barclay or Chase's website and find the better cards they offer that you want. Contact them, and switch your current card over to the new one. I've done this a couple times (with different companies) and my original account open date stayed the same, but I upgraded the card to a better rewards program that they offered. Seems like it'll be the best of both world for what you're trying to do.
Great idea. Funny you mention that, Capital One reached out to me a few months ago and offered to "upgrade" me to their 1.5% cashback Quicksilver Card, which I gladly accepted.
I'll email Chase and Barclay and see if they will offer the same.
Originally Posted By: cashmoney
Credit score is only important to people who are in debt and who are actively are acquiring as much debt as possible.
Close out all credit cards except 3-4 and make sure you have at least one flavor of each of these cards (all paying cashback) - 1)Amex, 2)Visa, 3) Mastercard, Make sure one of them does not charge for international currency payments (like the Cap 1 card) in case you travel.
Put 99.9% of all purchases and expense on these cash back credit cards and pay off total ever month. Cut up and throw away any debit cards they are junk and anti-consumer.
Collect cash back and never pay interest. Pay in cash for cars and only go into debt to acquire an appreciating asset like a house. And make sure you have a big down payment first and buy a house that you can pay off in 10-15 years max. That is how to build wealth, security, and freedom. Any other plan is a plan to be poor and a wage slave forever.
To the OP: this is a good list of things mostly not to do. Saying credit score is irrelevant and only important for people who want to be "wage slaves forever" is idiotic.
Some employers looks at the credit rating of job applicants. It is used to tell if a person is responsible. And about not getting a house until you can put down a huge down payment (or the Ramsey plan - buy it in all cash)? Well, until you get that huge down payment saved up you'll have to rent and many if not most landlords do credit checks on prospective tenants.
You accumulate wealth by accumulating appreciating assets or money. And that almost always takes going into debt initially unless you win the lottery. You don't accumulate wealth by an extra $300 cash back a year from credit card spending. Using a debit card for most things is not a bad idea, because it is easier to avoid wasteful spending than with a credit card. Credit cards and Paypal give additional protections for online spending that debit cards don't.
Credit score is only important to people who are in debt and who are actively are acquiring as much debt as possible.
Close out all credit cards except 3-4 and make sure you have at least one flavor of each of these cards (all paying cashback) - 1)Amex, 2)Visa, 3) Mastercard, Make sure one of them does not charge for international currency payments (like the Cap 1 card) in case you travel.
Put 99.9% of all purchases and expense on these cash back credit cards and pay off total ever month. Cut up and throw away any debit cards they are junk and anti-consumer.
Collect cash back and never pay interest. Pay in cash for cars and only go into debt to acquire an appreciating asset like a house. And make sure you have a big down payment first and buy a house that you can pay off in 10-15 years max. That is how to build wealth, security, and freedom. Any other plan is a plan to be poor and a wage slave forever.
To the OP: this is a good list of things mostly not to do. Saying credit score is irrelevant and only important for people who want to be "wage slaves forever" is idiotic.
Some employers looks at the credit rating of job applicants. It is used to tell if a person is responsible. And about not getting a house until you can put down a huge down payment (or the Ramsey plan - buy it in all cash)? Well, until you get that huge down payment saved up you'll have to rent and many if not most landlords do credit checks on prospective tenants.
You accumulate wealth by accumulating appreciating assets or money. And that almost always takes going into debt initially unless you win the lottery. You don't accumulate wealth by an extra $300 cash back a year from credit card spending. Using a debit card for most things is not a bad idea, because it is easier to avoid wasteful spending than with a credit card. Credit cards and Paypal give additional protections for online spending that debit cards don't.
Originally Posted By: Donald
One of the credit score factors is average age of credit cards. So one card at 5 years (60 months) and 5 at 1 year (12 months) = 120 months/6 = 20 months. They like to see 4 yr.
Exactly right. That's why you shouldn't close a card unless it has an annual fee, especially when you're young.
One of the credit score factors is average age of credit cards. So one card at 5 years (60 months) and 5 at 1 year (12 months) = 120 months/6 = 20 months. They like to see 4 yr.
Exactly right. That's why you shouldn't close a card unless it has an annual fee, especially when you're young.
Originally Posted By: cashmoney
Credit score is only important to people who are in debt and who are actively are acquiring as much debt as possible.
So you're saying that if you're responsible with money, you don't need a good credit score at all, correct?
Originally Posted By: cashmoney
Pay in cash for cars and only go into debt to acquire an appreciating asset like a house.
And how do you suggest someone get a home loan without a good credit score? (and at a good rate?)
Credit score is only important to people who are in debt and who are actively are acquiring as much debt as possible.
So you're saying that if you're responsible with money, you don't need a good credit score at all, correct?
Originally Posted By: cashmoney
Pay in cash for cars and only go into debt to acquire an appreciating asset like a house.
And how do you suggest someone get a home loan without a good credit score? (and at a good rate?)
Throt - with Barclay get their Sallie Mae card, if you don't have that one.
5% back at gas stations, grocery, bookstores (amazon.com counts) and 1% otherwise.
Great card to have. You can redeem the points for account statement credit once you have over 2500=$25 available. Sometimes the app reads like you need to have a student loan with them, its not true. Anyone can get the card and the cashback.
5% back at gas stations, grocery, bookstores (amazon.com counts) and 1% otherwise.
Great card to have. You can redeem the points for account statement credit once you have over 2500=$25 available. Sometimes the app reads like you need to have a student loan with them, its not true. Anyone can get the card and the cashback.
Originally Posted By: Ethan1
Originally Posted By: Donald
One of the credit score factors is average age of credit cards. So one card at 5 years (60 months) and 5 at 1 year (12 months) = 120 months/6 = 20 months. They like to see 4 yr.
Exactly right. That's why you shouldn't close a card unless it has an annual fee, especially when you're young.
I close unused CC accounts. From 19 to now when I'm 29 my credit improved so as I qualified for better cards I upgraded every few years and closed the old ones down. My current CC's I plan on keeping for a long time and both accounts are around 2 years old.
Old accounts still show on credit reports, and my credit is around 800. I had no issues signing and driving with Bank of America for a 2% interest truck loan last month.
I dislike having old open accounts sitting around.
Originally Posted By: Donald
One of the credit score factors is average age of credit cards. So one card at 5 years (60 months) and 5 at 1 year (12 months) = 120 months/6 = 20 months. They like to see 4 yr.
Exactly right. That's why you shouldn't close a card unless it has an annual fee, especially when you're young.
I close unused CC accounts. From 19 to now when I'm 29 my credit improved so as I qualified for better cards I upgraded every few years and closed the old ones down. My current CC's I plan on keeping for a long time and both accounts are around 2 years old.
Old accounts still show on credit reports, and my credit is around 800. I had no issues signing and driving with Bank of America for a 2% interest truck loan last month.
I dislike having old open accounts sitting around.
Originally Posted By: Throt
Originally Posted By: sicko
Why open a new card? Go to Barclay or Chase's website and find the better cards they offer that you want. Contact them, and switch your current card over to the new one. I've done this a couple times (with different companies) and my original account open date stayed the same, but I upgraded the card to a better rewards program that they offered. Seems like it'll be the best of both world for what you're trying to do.
Great idea. Funny you mention that, Capital One reached out to me a few months ago and offered to "upgrade" me to their 1.5% cashback Quicksilver Card, which I gladly accepted.
I'll email Chase and Barclay and see if they will offer the same.
I don't know what you are looking for out of your next card, but another member here mentioned the Sallie Mae Barclays card to me a while back. 5% cash back on gas and groceries up to $250 each category each month and 5% on book stores, which I think Amazon qualifies for on most purchases. Between this and a 2% cashback card we don't have much use for others anymore.
Originally Posted By: sicko
Why open a new card? Go to Barclay or Chase's website and find the better cards they offer that you want. Contact them, and switch your current card over to the new one. I've done this a couple times (with different companies) and my original account open date stayed the same, but I upgraded the card to a better rewards program that they offered. Seems like it'll be the best of both world for what you're trying to do.
Great idea. Funny you mention that, Capital One reached out to me a few months ago and offered to "upgrade" me to their 1.5% cashback Quicksilver Card, which I gladly accepted.
I'll email Chase and Barclay and see if they will offer the same.
I don't know what you are looking for out of your next card, but another member here mentioned the Sallie Mae Barclays card to me a while back. 5% cash back on gas and groceries up to $250 each category each month and 5% on book stores, which I think Amazon qualifies for on most purchases. Between this and a 2% cashback card we don't have much use for others anymore.
Originally Posted By: dlundblad
I am only 23, but that sounds like a lot of credit cards IMO. Hopefully your credit card companies hate you and you pay them off monthly. Dave Ramsey 101. If you cant afford to pay cash, you cant afford it.
From what I have heard, the Chase card is a good one to have so I'd definitely try to keep that one.
OT: I am in the midst of looking for a different bank and considering Chase. Not a huge fan of the service fee my bank charges (for having an account as well as using my debit) and it's location is no longer convenient for me.
A bit OT again: I am new to direct deposit. Combine that with not wanting to use my debit for cash back and its a big no no. Just 2 weeks ago, apparently Marathons EFT system was down. My fuel light was on and I just figured I'd swing by after work. No biggy. I only had $4 in cash on me to get home.
Take a look at Ally bank. Great rates on checking, savings, and no ATM fees ever.
I am only 23, but that sounds like a lot of credit cards IMO. Hopefully your credit card companies hate you and you pay them off monthly. Dave Ramsey 101. If you cant afford to pay cash, you cant afford it.
From what I have heard, the Chase card is a good one to have so I'd definitely try to keep that one.
OT: I am in the midst of looking for a different bank and considering Chase. Not a huge fan of the service fee my bank charges (for having an account as well as using my debit) and it's location is no longer convenient for me.
A bit OT again: I am new to direct deposit. Combine that with not wanting to use my debit for cash back and its a big no no. Just 2 weeks ago, apparently Marathons EFT system was down. My fuel light was on and I just figured I'd swing by after work. No biggy. I only had $4 in cash on me to get home.
Take a look at Ally bank. Great rates on checking, savings, and no ATM fees ever.
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