Advice on how to best use toy limit Citi Simplicity

[Anonymous]

I posted last weekend that I was approved for both the Barclaycard Ring ($10K instant) and Citi Simplicity ($500 after request to call) within an hour of each other.

Obviously, I have plenty of credit spread out across a number of banks. 

The Citi Simplicity, however, I'm looking at as my way to repair a relationship with Citi that I totally screwed up 5 years ago (stiffed them for $4800, settled for $2500 three years ago). That they let me back in kind of amazes me.

What is your advice for the best way to use this card (which, with the Ring, I don't actually need).

I know that the Simplicity can't be PC'd until the intro offer expires (which I have for 18 months, not the advertised 21)... so should I use it heavily, hopefully get the CL increased automatically, and then PC it to the Double Cash? (By that time, my Discover double cash back period will be over... and I have no problem PCing to a card without a signup bonus).

Basically -- what would you do if you had a card with a useless limit with a bank you wanted to maintain a relationship with?

[Discover2016]

Your best bet is to use heavily but pay before statement closes, I believe Citi will allow you to SP CLI at the 6 month mark maybe even sooner.

[core]

I think 18 months from now the Citi DC won't be nearly as desireable as it is now.  There are already other 2% cards out there, and in a year and a half there will be even more, and with better terms.  So I don't think I'd want to throw away reward dollars just trying to get brownie points for a CLI and future PC that I might not even want when the time comes.  I'd just put a $1 charge on the card once every few months and leave it at that.

[NRB525]

OP, in 2012, I had only two remaining cards with Citi, both closed after the credit crisis, total balances still open on the accounts totalled about $18k. No open Citi cards left at that time.

They sent me a mailer for the Diamond Preferred, so I mailed that back, and they gave me a $1k Diamond Preferred.

I proceeded to load up a $940 BT onto the card to take advantage of the 0% APR. Paid it slowly during the promo period, then eventually paid it off after about 21 months.

They periodically sent me spend promo offers, so I've used those.

Earlier in 2015 I called about any other BT offers, "None at this time", then in  March they sent me one, so I loaded a $700 BT onto that.

Then they sent me a 5% back offer on Gas, Groceries, Dining and Department stores for Q2, so I had to run charges through the card, pay those a couple times a month, while still maintaining the low APR BT paydown rate underneath all that. It was fun.

Got it paid down to zero in October, and they happened to send me a 5% on Dining and Theater/Movie tickets, so I almost maxed the $500 spend for that, and they added a 1.9% APR on Purchases, so nearly $400 of the spend is now going to be left on my standard $100 per month (or I may lower that) Autopayment through May to retire the amount before the 1.9% expires.

Unless they send me another spend bonus offer, then I'll have to fire up the card again. There's been about 5 of those offers, usually running for a quarter, over the last couple of years.

oh, and my prequalifications at the Citi site have been the lowest APR on everything since about July, when I got the AAdvantage card with $13k. That's more a feature of my general credit scores improving, but I'm sure the DP usage hasn't hurt.

So, if I were you, I'd consider doing a $450 BT onto the card, yes, even though it is a $500 card, set up $50 per month autopayment, and let it idle down to zero. You might also call them about any spend bonus offers that might be available, just to poke the piggy bank.

FWIW, I never pay before statement cuts, except when I want to charge new items onto a card that has a BT offer underneath, then I pay those new charges a few days later to keep them from getting interest costs.

Whether it's $500 (I have two secured cards for that amount) $1k (my DP), or $1,500 (my CLD'd Freedom card), small limit cards can be fun to use.

[Anonymous]

Thank you.

Honestly, part of me was kind of relieved at the limit. $500 is so easy to manage. Your idea about the $450 BT is an interesting one, and I hadn't considered it before. Your post has given me a lot to think about. I appreciate it very much!

[OmarGB9]

I would use the card as much as possible and make plenty of payments. I too got a toy limit, but on the DP. As for PCing it later on, I hate to burst your bubble, but Simplicity can't be PCd to anything; it's in a class all its own.

[takeshi74]

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@Anonymous wrote:

Basically -- what would you do if you had a card with a useless limit with a bank you wanted to maintain a relationship with?

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"Relationship" doesn't matter.  It's all about credit profile and income.  Either you qualify or you do not.  At best, relationship can have a small impact in some cases but it will not make or break a decision on its own or overrule one's credit profile and income.

It's all about the usefulness of a specific product for me.  However, if you want to keep and grow the card then you need to identifty and address the concerns that the creditor has with your credit profile.