CSP VISA signing bonus worth it, even for just one year possibly *somewhat long*

[Financiers]

Hey everyone,

I only have two cards at the moment, a discover it (16,500 CL) and an AMEX BCE (25,000 CL).  I used to have a terrible VISA through a bad company that I closed (first card).  I also had a chase freedom that I closed out of frustration regarding their lack of CLI and customer service.  I probably should have left that open, but I don't like having a lot of credit cards.

 Anyways  to get to the main point, I've been toying with the idea of opening a new VISA credit card so I can have one of each of the main companies.  I really like cash back cards vs reward points.  I also usually don't like annual fee cards.  I've been aggressively paying off my student loans.  I just found out that I can make student loan payments on my credit card (no fees) earning 2% back for free (discover 1% and double cash back).  I was thinking of getting a CSP for their crazy 50,000 point offer and cashing that out for around $500 in cash if I recall correctly.  Since i'm paying off my loans quickly, the 4,000 in 3 months can be easily met.  The only thing that I'm not keen on is the annual fee.  I also really didn't like chase much from my previous experience.  However, that is quite a bit of "free money" with the signing bonus.  The worst I could do is close the card after a year if the fee isn't worth it.  I realize this could hurt my CL, but to be honest I'm not too worried at my current level.

I know i'm not the "usual" on myfico with closing and opening cards, but I don't like having too many cards and accounts to oversee, even if SD.

I appreciate your help a lot! I also apologize in advance for this post.  It's late and my brain is wired.  Add the mobile typing and I think I've rambled quite a bit.  Thanks again!

[longtimelurker]

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@Financiers wrote:

Hey everyone,

I only have two cards at the moment, a discover it (16,500 CL) and an AMEX BCE (25,000 CL).  I used to have a terrible VISA through a bad company that I closed (first card).  I also had a chase freedom that I closed out of frustration regarding their lack of CLI and customer service.  I probably should have left that open, but I don't like having a lot of credit cards.

 Anyways  to get to the main point, I've been toying with the idea of opening a new VISA credit card so I can have one of each of the main companies.  I really like cash back cards vs reward points.  I also usually don't like annual fee cards.  I've been aggressively paying off my student loans.  I just found out that I can make student loan payments on my credit card (no fees) earning 2% back for free (discover 1% and double cash back).  I was thinking of getting a CSP for their crazy 50,000 point offer and cashing that out for around $500 in cash if I recall correctly.  Since i'm paying off my loans quickly, the 4,000 in 3 months can be easily met.  The only thing that I'm not keen on is the annual fee.  I also really didn't like chase much from my previous experience.  However, that is quite a bit of "free money" with the signing bonus.  The worst I could do is close the card after a year if the fee isn't worth it.  I realize this could hurt my CL, but to be honest I'm not too worried at my current level.

I know i'm not the "usual" on myfico with closing and opening cards, but I don't like having too many cards and accounts to oversee, even if SD.

I appreciate your help a lot! I also apologize in advance for this post.  It's late and my brain is wired.  Add the mobile typing and I think I've rambled quite a bit.  Thanks again!

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Yes, high bonus cards like CSP are worth getting if you can meet the spend (which you can) and don't mind additional inquiries/new accounts, which might drop your score slightly.

The CSP has no AF for the first year, and can be simply cashed out (or transferred for potentially greater value) so it's a very easy choice if you just want a bonus.   After 11 months or so, you can decide if you want to keep it, if it turns out to be a good match for your spending and your goals.

[OmarGB9]

You'd be surprised. Lots of members on here churn (open and close cards) CCs for bonuses. The AF is waived the first year, so you can take the card for a spin for free and see if you like it. With those high CLs, I'm guessing your reports are good and so is your income; therefore, if you applied, I'm willing to bet you'd be approved and for a nice, high SL.

[takeshi74]

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@Financiers wrote:

I also usually don't like annual fee cards.

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Always consider total cost/benefit, not just AF/no AF.  Run the numbers for your spend.  Consider redemptions for rewards programs like UR as the redemption method that you can use will have an impact on reward value.

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@Financiers wrote:

I was thinking of getting a CSP for their crazy 50,000 point offer and cashing that out for around $500 in cash if I recall correctly.  Since i'm paying off my loans quickly, the 4,000 in 3 months can be easily met.  The only thing that I'm not keen on is the annual fee.  I also really didn't like chase much from my previous experience.  However, that is quite a bit of "free money" with the signing bonus.  The worst I could do is close the card after a year if the fee isn't worth it.  I realize this could hurt my CL, but to be honest I'm not too worried at my current level.

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It's your call if you want to churn for sign up bonuses.  Cash back offers poor value for UR points but it's also your call whether or not that's worthwhile to you.  Verify that you can pay your student loans with a card.  I can't with Navient.

Not sure what you mean about hurting your CL.  There's no credit extended to you when you close a credit card.  Applying will reduce your AAoA.  Closing can impact your revolving utilization but you can do the math to determine your revolving utilziation before and after.

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@Financiers wrote:

I know i'm not the "usual" on myfico with closing and opening cards, but I don't like having too many cards and accounts to oversee, even if SD.

Usual doesn't matter.  You have to ensure that you can responsibly maange your credit accounts.  If a smaller number is better for you then it doesn't matter if others have more accounts.

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@Financiers wrote:

I also had a chase freedom that I closed out of frustration regarding their lack of CLI and customer service.

Yuor credit profile and income will determine the CLI's that you qualify for with any creditor.