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Contributor
nickn86
Posts: 130
Registered: ‎11-26-2012

Re: Annual Fees on cards!!


Dustink wrote:

 Generally, I find AF's on starter cards a bad idea. Most of the time somebody can find a way around that if they build a relationship with a bank. Although, the AeroMexico secured card from US Bank seems worthly of its terms for somebody with no/bad credit and no relationship with a bank.


I think that's true for people with no credit, but not so much for people with bad credit.  Sometimes credit can be so bad that you can't even open a checking account!

 

FWIW, I took the route you suggest when my whole credit report was a student loan that had been opened for less than a year.  I had banked with Chase for awhile so I went into a branch and asked to apply for a credit card and ended up being approved for probably the most obscure Chase card out there (Chase +1 with a $300 limit).  It's actually a pretty cool looking card though -- http://www.dollarbanker.com/credit-cards/wp-content/uploads/2010/03/chase-plus-1-student-cc.jpg -- I told people it was my "black card."  :smileyvery-happy:

Chase Sapphire Preferred - 5.6k (3/13) | Amex Premier Rewards Gold - NPSL (1/13) | Chase United MileagePlus Explorer Visa Signature - 9k (1/13) | Amex Delta Gold - 6k (9/12) | Citi Forward Visa - 10k (10/12) | Discover It - 2k (2/12) | Chase +1 Visa - $300 (2/11)
Moderator
Revelate
Posts: 8,447
Registered: ‎12-30-2011

Re: Annual Fees on cards!!


Dustink wrote:

 

Generally, I find AF's on starter cards a bad idea. Most of the time somebody can find a way around that if they build a relationship with a bank. Although, the AeroMexico secured card from US Bank seems worthly of its terms for somebody with no/bad credit and no relationship with a bank.


Think I justified my BOFA secured AF in the first month after I added the rewards package.

 

That said, you're buying a tradeline and there aren't many $0 AF options if you're in the secured / deep subprime bracket, we're talking where I started at a FICO of 560ish.  I do suppose it's based on one's own finances; however, I know I and pretty much everybody else wastes more money on far less important things than a positive tradeline: the ROI dwarfs anything I could do otherwise with the money.

 

Admittedly, I'm not a proponent for chasing store cards as I think that delays relationship and credit report (occasionally discounted vis a vis Chase) building rather than enhancing it, and this does color my opinion in being in favor of sucking up an AF to get a tradeline from a recognized national bank or CU.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012

Re: Annual Fees on cards!!


QuantumCredit wrote:

15K for 2 people seems a little on the high side, but 20K for a family of 4 or even 3 is totally normal.


Yes, this was 3-4 people, and also depends where you shop.  Whole Foods adds up quicker than Walmart for example.

Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012

Re: Annual Fees on cards!!


QuantumCredit wrote:

15K for 2 people seems a little on the high side, but 20K for a family of 4 or even 3 is totally normal.


It is high for only 2 of us, but we eat pretty well.

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012

Re: Annual Fees on cards!!


Dustink wrote:

I have earned 90,000 points ($1800) on my flexperks card since I opened it in June. I find that worth the $49 AF that is waived with $2k monthly spend.

 

I also find the $450 AF on the AMEX plat worth it with the 100k MR point bonus, lounge access, and $200 incidental credit.

 

Generally, I find AF's on starter cards a bad idea. Most of the time somebody can find a way around that if they build a relationship with a bank. Although, the AeroMexico secured card from US Bank seems worthly of its terms for somebody with no/bad credit and no relationship with a bank.


The question now is: are you going to keep the Amex plat after the 1st year when there's no 100k signup bonus anymore?

FICOs: EX: 826, EQ: 817, TU: 810
Bank of America Privileges with Travel Rewards Visa Signature - $23,200 CL
Chase Sapphire Preferred Visa Signature - $12,700 CL
Chase United MileagePlus Club World Elite MasterCard - $26,500 CL
Citibank American Airlines Executive World Elite MasterCard - $22,500 CL
J.P. Morgan Ritz Carlton Visa Signature - $23,500 CL
Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012

Re: Annual Fees on cards!!


nickn86 wrote:

FWIW, I took the route you suggest when my whole credit report was a student loan that had been opened for less than a year.  I had banked with Chase for awhile so I went into a branch and asked to apply for a credit card and ended up being approved for probably the most obscure Chase card out there (Chase +1 with a $300 limit).  It's actually a pretty cool looking card though -- http://www.dollarbanker.com/credit-cards/wp-content/uploads/2010/03/chase-plus-1-student-cc.jpg -- I told people it was my "black card."  :smileyvery-happy:


Haha, that is awesome. 

 

I also started with a $300 limit. I had no credit (no tradelines of any kind). Limit went to $2500 after 6 months, hopefully you have good luck with Chase. I was with US Bank.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012

Re: Annual Fees on cards!!


Revelate wrote:

Dustink wrote:

 

Generally, I find AF's on starter cards a bad idea. Most of the time somebody can find a way around that if they build a relationship with a bank. Although, the AeroMexico secured card from US Bank seems worthly of its terms for somebody with no/bad credit and no relationship with a bank.


Think I justified my BOFA secured AF in the first month after I added the rewards package.

 

That said, you're buying a tradeline and there aren't many $0 AF options if you're in the secured / deep subprime bracket, we're talking where I started at a FICO of 560ish.  I do suppose it's based on one's own finances; however, I know I and pretty much everybody else wastes more money on far less important things than a positive tradeline: the ROI dwarfs anything I could do otherwise with the money.

 

Admittedly, I'm not a proponent for chasing store cards as I think that delays relationship and credit report (occasionally discounted vis a vis Chase) building rather than enhancing it, and this does color my opinion in being in favor of sucking up an AF to get a tradeline from a recognized national bank or CU.


I am all for secured rewards cards. Just not the First Premier type stuff.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%
Contributor
nickn86
Posts: 130
Registered: ‎11-26-2012

Re: Annual Fees on cards!!

[ Edited ]

Dustink wrote:

nickn86 wrote:

FWIW, I took the route you suggest when my whole credit report was a student loan that had been opened for less than a year.  I had banked with Chase for awhile so I went into a branch and asked to apply for a credit card and ended up being approved for probably the most obscure Chase card out there (Chase +1 with a $300 limit).  It's actually a pretty cool looking card though -- http://www.dollarbanker.com/credit-cards/wp-content/uploads/2010/03/chase-plus-1-student-cc.jpg -- I told people it was my "black card."  :smileyvery-happy:


Haha, that is awesome. 

 

I also started with a $300 limit. I had no credit (no tradelines of any kind). Limit went to $2500 after 6 months, hopefully you have good luck with Chase. I was with US Bank.


Wow, that's a crazy fast bump for never having any credit at all beforehand. I never tried to up the limit with Chase and I haven't used the card in 6 or so months since the only rewards it has are based on paying your bill on time.  I should probably use it a couple of times before I apply for other Chase cards.

Chase Sapphire Preferred - 5.6k (3/13) | Amex Premier Rewards Gold - NPSL (1/13) | Chase United MileagePlus Explorer Visa Signature - 9k (1/13) | Amex Delta Gold - 6k (9/12) | Citi Forward Visa - 10k (10/12) | Discover It - 2k (2/12) | Chase +1 Visa - $300 (2/11)
New Contributor
ItchyAppFingers
Posts: 96
Registered: ‎07-31-2012

Re: Annual Fees on cards!!

I recently got charged a $79 AF on my Orchard Bank card. I am talking about a card here with ZERO rewards or perks just a regular cc that you charge and pay. After 2 1/2 years of rebuilding I decided to close this account because it was useless to me and I have much better cards now with rewards + higher CL's. I find it outrageous to be charged $79 annually for a CL of only $400 that never grew on me for as much as I tried to request a CLI. SMH @ Crap. 1.
My Current Plastic: {Amazon Store Card} {Amazon Visa} {Amex Zync} {Amex Gold PRG} {Amex BCE} {Bloomingdales} {BOA 123 Cash Rewards} {Capital One Platinum Visa} {Chase Freedom Visa} {Discover IT} {Kohls} {Macy's} {Nordstrom} {SonyCard Visa} {Target RedCard}
Valued Contributor
Dustink
Posts: 2,980
Registered: ‎10-02-2012

Re: Annual Fees on cards!!


CreditScholar wrote:

Dustink wrote:

I have earned 90,000 points ($1800) on my flexperks card since I opened it in June. I find that worth the $49 AF that is waived with $2k monthly spend.

 

I also find the $450 AF on the AMEX plat worth it with the 100k MR point bonus, lounge access, and $200 incidental credit.

 

Generally, I find AF's on starter cards a bad idea. Most of the time somebody can find a way around that if they build a relationship with a bank. Although, the AeroMexico secured card from US Bank seems worthly of its terms for somebody with no/bad credit and no relationship with a bank.


The question now is: are you going to keep the Amex plat after the 1st year when there's no 100k signup bonus anymore?


Not likely, unless I find that I can't live without lounge access. Although, that is unlikely because I am always up for going to a USO instead. 

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:21    


     $14k          $8.5K          $7.5k          $7.5k         $6.5k             $6k             $5k            $5k             $5k              $5k           NPSL       @ 0%

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