Shopping for a 2nd credit card
- Thread starter Vern_in_IL
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I have a Hobby Lobby Visa CC. I get $25 in hobby Lobby gift card for every $2k spent. I use the gift cards for Christmas gifts each year. CL is $12k. Although I never ever even use a 1/10th of that at a time in most cases.
Originally Posted By: Kuato
Originally Posted By: Donald
Its bad advice to go out and get as many credit cards as you can. ...
Agreed! In this way danger lies!
No.
Only if you're irresponsible with regards to finance.
2 years ago I started earning miles with bonus offers on the various CCs. 55k here, 40k there, 70k (Hilton) there... etc.
I never looked at my credit score beforehand, but within the last year its been over 800. Opening up a bunch of accounts, barely affects it. My # of cards was definitely in the teens at one point.
I've flown to NZ, Portland, DC and Curacao (upcoming) with miles. I got $500 cashback from a recent Citi card bonus. Stayed a few nights in Marriots. All for only fee/taxes.
The biggest bonuses come from cards that have an annual fee, but are waived during the first year. So you have to be responsible enough to keep a spreadsheet, track when you opened the account, what the initial bonus offer was for, when you got the offer, and when to cancel the card to avoid the annual fee.
There are tons of websites dedicated to people who try and maximize their miles, etc. I just grabbed the biggest, easiest bonuses. Definitely worth the hassle, though.
You won't see many recommending it on here, though, because people on here get flamed when they complain about new car purchases or leases as not fiscally responsible. "Its my money, I'll spend it how I want" (well if you financed - its not really your money) Many members seem to lack financial control.
Credit is a tool. You have to know how to use it, though. At the same time, don't bow down to your credit score, either. Don't be afraid to open a new account b/c it might lower your score or shorten your age of accounts. What good is credit if you don't actually use it? Its a catch-22, those with good credit don't need it as much as those with the lowest scores.
OP - Citi Double Cash is currently a good "all-rounder".
Originally Posted By: Donald
Its bad advice to go out and get as many credit cards as you can. ...
Agreed! In this way danger lies!
No.
Only if you're irresponsible with regards to finance.
2 years ago I started earning miles with bonus offers on the various CCs. 55k here, 40k there, 70k (Hilton) there... etc.
I never looked at my credit score beforehand, but within the last year its been over 800. Opening up a bunch of accounts, barely affects it. My # of cards was definitely in the teens at one point.
I've flown to NZ, Portland, DC and Curacao (upcoming) with miles. I got $500 cashback from a recent Citi card bonus. Stayed a few nights in Marriots. All for only fee/taxes.
The biggest bonuses come from cards that have an annual fee, but are waived during the first year. So you have to be responsible enough to keep a spreadsheet, track when you opened the account, what the initial bonus offer was for, when you got the offer, and when to cancel the card to avoid the annual fee.
There are tons of websites dedicated to people who try and maximize their miles, etc. I just grabbed the biggest, easiest bonuses. Definitely worth the hassle, though.
You won't see many recommending it on here, though, because people on here get flamed when they complain about new car purchases or leases as not fiscally responsible. "Its my money, I'll spend it how I want" (well if you financed - its not really your money) Many members seem to lack financial control.
Credit is a tool. You have to know how to use it, though. At the same time, don't bow down to your credit score, either. Don't be afraid to open a new account b/c it might lower your score or shorten your age of accounts. What good is credit if you don't actually use it? Its a catch-22, those with good credit don't need it as much as those with the lowest scores.
OP - Citi Double Cash is currently a good "all-rounder".
I got $3k worth of airline tickets last year for $200 thanks to all of my miles.
Unless your a financial alcoholic your foolish to not charge everything on a rewards CC.
Unless your a financial alcoholic your foolish to not charge everything on a rewards CC.
Put everything on a cash back rewards card. Citi, Chase, America Express all have good cash back cards. I put everything on credit that I get back a ton of cash each year just for making purchases.
Originally Posted By: Kuato
Originally Posted By: Donald
Its bad advice to go out and get as many credit cards as you can. ...
Agreed! In this way danger lies!
My liquor cabinet is full, and I'm still sober.
The more accounts on your report, the higher your credit score will go. The higher your credit score, the more you will save on loans and insurance premiums.
Originally Posted By: Donald
Its bad advice to go out and get as many credit cards as you can. ...
Agreed! In this way danger lies!
My liquor cabinet is full, and I'm still sober.
The more accounts on your report, the higher your credit score will go. The higher your credit score, the more you will save on loans and insurance premiums.
Originally Posted By: Donald
Its bad advice to go out and get as many credit cards as you can. If you have one, then get one or two additional ones.
New cards effect two credit score factors "new account opened" and "avg age of credit card account". New cards will pull down the avg age for several years. If you have had one card for 3 years, the avg age is 3. Get two new cards and the avg age is now 1.
True, but another thing that affects your credit score is number of credit accounts you have. The more accounts you have, the better your score will be. (Up to a certain point. Once you have like 30 accounts, it doesn't matter anymore and getting more accounts won't really improve your score). And accounts that have been closed still count towards that number. The only way to get more accounts is to have more credit inquiries and to drag the average age down. Credit inquiries fall off your report after only 2 years, so it's not that big of a deal. The average age getting dragged down is more of a concern, but the sooner you rack up more accounts, the more time you have for the average age to recover.
Its bad advice to go out and get as many credit cards as you can. If you have one, then get one or two additional ones.
New cards effect two credit score factors "new account opened" and "avg age of credit card account". New cards will pull down the avg age for several years. If you have had one card for 3 years, the avg age is 3. Get two new cards and the avg age is now 1.
True, but another thing that affects your credit score is number of credit accounts you have. The more accounts you have, the better your score will be. (Up to a certain point. Once you have like 30 accounts, it doesn't matter anymore and getting more accounts won't really improve your score). And accounts that have been closed still count towards that number. The only way to get more accounts is to have more credit inquiries and to drag the average age down. Credit inquiries fall off your report after only 2 years, so it's not that big of a deal. The average age getting dragged down is more of a concern, but the sooner you rack up more accounts, the more time you have for the average age to recover.
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