A SAFE Visa card with 2% cash back

[Fico2Go]

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@sr383 wrote:

An "everything else" card shouldn't have a spending limit. I think I'd prefer the Fidelity Amex.

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Thanks!  You just snapped me out of the CC darkness.   Just realized now that a Charge Card can fix the issue whether to PIF by statement date or due date.   

Charge Card debt doesnt count towards UTIL ratio.

[longtimelurker]

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@Fico2Go wrote:

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@sr383 wrote:

An "everything else" card shouldn't have a spending limit. I think I'd prefer the Fidelity Amex.

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Thanks!  You just snapped me out of the CC darkness.   Just realized now that a Charge Card can fix the issue whether to PIF by statement date or due date.   

Charge Card debt doesnt count towards UTIL ratio.

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True, but not sure why that snapped you in that direction, as the Fid Amex is a credit, not charge card!

[Fico2Go]

I was thinking charge cards as in amex prg and other products that do not affect util ratio.

[Revelate]

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@Fico2Go wrote:

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@sr383 wrote:

An "everything else" card shouldn't have a spending limit. I think I'd prefer the Fidelity Amex.

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Thanks!  You just snapped me out of the CC darkness.   Just realized now that a Charge Card can fix the issue whether to PIF by statement date or due date.   

Charge Card debt doesnt count towards UTIL ratio.

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Or just build your limits to where the "everything else" category is financially irrelevant .

While a charge card does have some advantages for playing hide the utilization from FICO on newer versions of the model, end of the day it still has to be PIF, so there's virtually no difference from using it or a higher limit credit card.

I'm firmly of the opinion everyone should have a rainy day balance carrying card as part of their credit card portfolio: a charge card can never do this, whereas the high limit, low APR balance carrying card could easily fill the slot of "everything else" when needed even for larger purchases.  My theory anyway.

[Open123]

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@Revelate wrote:

I'm firmly of the opinion everyone should have a rainy day balance carrying card as part of their credit card portfolio: a charge card can never do this, whereas the high limit, low APR balance carrying card could easily fill the slot of "everything else" when needed even for larger purchases.  My theory anyway.

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+1

Any cards which offer me a promo rate, such as Freedom's 0% for 15 months, I'm not going to PIF, even if I could.  While going against the fabric of Fico score maximization, my method is min payments, then a ballon right before the promo ends.

*Edited*  Or, some very high CL cards offering me 1% cash advance checks.  This will work too, given the value one places on future vs. present dollars.

[Fico2Go]

Revelate, I respectfully disagree since a charge card can and will buy a free grace period of interest free and free from CR UTIL increase.

Open, have u ever had issues with a particular issuer while making the minimum 0% interest payment?

[Open123]

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@Fico2Go wrote:
Open, have u ever had issues with a particular issuer while making the minimum 0% interest payment?

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No, not yet.  I've done this a few times, if only because on general principle, I would never PIF 0% promo early.

However, I would be less inclined to utilize this strategy with AmEx.  All things being equal, I think one would have little issues with Citi, Barclay, Chase, BofA, or Discover.  Of course, this is assuming all things are well with one's CR.

[Fico2Go]

I think Amex should be ok too. Otherwise they wouldnt offer 0% interest on a few of their products.

BUT I wouldnt recommend doing it in any period where a CLI request will be made.

[Open123]

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@Fico2Go wrote:
I think Amex should be ok too. Otherwise they wouldnt offer 0% interest on a few of their products.

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I've done with AmEx too.  When I app'ed for the BCP's signing bonus, it came with a 12 month 0% promo.  I pretty much paid the montly premium, and the ballon balance right before the promo's expiration.

This is standard practice for me.

[user5387]

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@Fico2Go wrote:
Revelate, I respectfully disagree since a charge card can and will buy a free grace period of interest free and free from CR UTIL increase.

Open, have u ever had issues with a particular issuer while making the minimum 0% interest payment?

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Isn't the grace period on a charge card only a few weeks?  If you qualify for Amex's Pay Over Time for charge cards, then you can revolve such a balance, but presumably at a rate like 17%.

I agree totally with what Revelate said.  It's easy to forget that the advice in this forum is typically aimed at people who pay in full.

Like other people, I have a set of nice rewards CCs.  But I don't believe those CCs will do anything for me if I need to carry a balance, get a cash advance, or do a balance transfer.  The idea of using CCs for financing purposes is another whole area, that is so important that it deserves its own forum.

As an example of the issue, suppose that I'm revolving a $5000 balance at 15%, and the same CC has 1.5% rewards and I spend $1000 a month.

In such a case, I'd pay $750 a year in interest, and reap $180 in rewards, and thus the CC company would make $570 off me.

If instead I used a 10% card with no rewards, the CC company would make $500 off me.