Credit Card Plan

[Calculon]

Hey Everyone -

I started collecting credit cards in 2013 and am up to seven now, I recently got the Amazon Visa for the free $75.  What I've noticed is that I get most cashback on my Citi Double Cash abd Salle Mae Barclay cards.  What I'd like to do is maximize their use.  Right now I've got a little over $30,000 in credit cards, and am usually between $1,000 and $2,000 for my credit card balance each month, with the occasional month over that amount.  My Double Card, which i've had two years now, has a limit of $4,200.  My plan would be to ask for a significantly higher amount on my Double Cash card, I'm OK with the $5,000 on my Sallie Mae, then close all my other cards.  I figure I'm unlikely to need credit again as my house and car paid off, so any hit I take in the short term will work itself out in the long run.  My credit score is between 750-775 depending on where you look.  Does this sound like a good or bad idea?  I tend to spread things around as not maximize my Double Cash, but then I don't get the most cashback possible.  Thanks for any help.

[Anonymous]

---

@Calculon wrote:

Hey Everyone -

I started collecting credit cards in 2013 and am up to seven now, I recently got the Amazon Visa for the free $75. Common mistake.  Yikes.  You should have been pursuing more chase cards since you were probably less than 5 new cards in 2 years. Amazon visa is great for random BT promos with 1-2% rate tho. However in redeeming for amazon its not great. What I've noticed is that I get most cashback on my Citi Double Cash abd Salle Mae Barclay cards.  What I'd like to do is maximize their use.  Right now I've got a little over $30,000 in credit cards, and am usually between $1,000 and $2,000 for my credit card balance each month, with the occasional month over that amount.  My Double Card, which i've had two years now, has a limit of $4,200.  My plan would be to ask for a significantly higher amount on my Double Cash card, I'm OK with the $5,000 on my Sallie Mae (would call and ask for a APR reduction and if there are any other ofers on your account. Many folks get SP increases this way!!) then close all my other cards.  I figure I'm unlikely to need credit again as my house and car paid off, so any hit I take in the short term will work itself out in the long run.  My credit score is between 750-775 depending on where you look.  Does this sound like a good or bad idea?  I tend to spread things around as not maximize my Double Cash, but then I don't get the most cashback possible.  Thanks for any help.......How many cards have you opened in the last 2 years?  If you are at less than 5, I would immediately apply for the Chase Sapphire Reserve, get a CL at least 10k if not more with your scores, few weeks pay the $450 AF, card comes quick, $300 travel credit is available right away and covers so many things just google it and you will fall out of your seat! (speeding tickets even lol)  then after spending 4k within 90 days you'd have $1k in cash, or $1.5k for travel on chase portal.  Paired with your freedom, it would be great.  Do not close your oldest account.  You are still early in the game like me but have not been over aggressive which is good. I started out around then, and was of course out of luck when 5/24 was enforced this spring.  Even if you arent a big traveler, its still worth it. Do not let the annual fee scare you please.  This added CL can be moved to your freedom later on, at 12months with the CSR you can downgrade to avoid the annual fee.  And you'd also get another 300 of free travel january 1!!! 

What amex is that you have?  Does it earn you any rewards? Have you browsed Themanwhocan's cash back charts to see how to maximize rewards based on spending?  You can always do that but dont miss out on these big bonuses.  If you are close to a chase branch, go there. Ask if you are prequalified for any offers. If the 450 AF one time is just too much to grasp, you may get a targeted 70k offer on the 95 af chase sapphire reserve, with a 30k offer on a freedom unlimted. That would basically be $1000 cash free right there too.

Just think about it at least please!

As far as citibank goes, its hit or miss.  I opened mine last summer with a 2100 limit, by december it was sp increased to 3800. Feb I called the EO and requested a hp increase to 15k, was only granted 10k. Perfect!  Then when it was a year old I repeated that and got it to 15k.  Get bt checks all the time now on this card like 0.9% until november or 0% for 17-19 months.  Ask for apr reductions every 3-4 months. You should be able to get as low as 9-10%.  There have been 3 cases with my family and friends when I directed them to call citi's EO, and they actually did not have a hard inquiry. They agreed to one, but after the call there is a 3 day waiting period and their return call was great and they said they did not need to do one, they got the fullamount they requested, 20-30k.  You could see online if you have the option to request and increase with no HP, then do that every 6 months. Have you been doing that?  Take it a step further and click ask for more, aim high, and let them counter. If it grants you a partial increase then you can call the EO at that point to have the HP CLI reconsidered.  I just think its better to call them first that way you have a slim chance to avoid HP totally and get a decent limit!!!

Capital one I have a love/hate relationship with.  They denied me back in the day when I didnt know what credit was, as did chase, I waited a long time to get into the game as I was afraid and thought CC's automatically equals debt.  I like to think my values are a mix of suze orman and dave ramsey.  They are quite the opposite fanatics!

I would always continue to ask for CLI's on cap1 every 6 months, Mark your calender.  Ask for APR reductions as well.  Capital one may be a little pull happy with inquiries but they will be that one lender who sticks by your side in hard times (luckily I never have had to experience that).

Once you have got a few more chase cards and your 5/24 belly is full, you can trim a few cards that are useless to you if you wish, or when their AF approaches.  But you could consider banking at a credit union too.  High yield checking accounts are going wild these days, 3-5% on 5-20k depending on the bank. And they offer you a single digit fixed rate interest card, sometimes even with rewards but nothing extraordinary.  Diversify.  And remember for scoring reasons you want to have a minimum of 3 credit cards, always have 1 report a small balance, total util below 20%.  Good luck!

---

[Calculon]

Thanks Jfriend -

Yeah, the Amazon thing was kind of on a whim last month. I have three cards that are three plus years old, the other three are almost at two years. In four months they'll all be two years old. Now the Amazon, which hasn't shown up on my credit report yet.

I'm sure the Chase Sapphire is great, but I don't travel much these days and the $450 annual fee will likely each a good chunk of the cashback I earn.

I have an American Express Blue, that only offers 1% cashback. It's probably my least useful card after the Amazon.

What I'd like to do is ask Citi for a large limit increase, then dump all my other cards except the Sallie Mae for the 5% cashback on gas and groceries. I understand my score will probably take a hit, but it's unlikely I'm going to need credit in the near future or change jobs and things should work themselves out in the end if I keep everything up to snuff. Thanks again.

[Anonymous]

You're on the right track it might be in your best interest to not even guess or speculate future spend. Load up the statements of all your cards and pretend the Citibank was your only card this year and do a simulation, the same spend on same items and services thru each one. I let myself down when I see those big 5% and don't really see a difference after a year, except discover 2x of course

[Calculon]

I'd really like to maximize my cashback.  I think the Double Cash and the Sallie Mae are the best fit for me.  I rarely use the rotating categories or other offers, but a steafy 2% off everything, and 5% off gas and groceries would be the most useful to me. 

[Anonymous]

---

@Calculon wrote:

Thanks Jfriend -

Yeah, the Amazon thing was kind of on a whim last month. I have three cards that are three plus years old, the other three are almost at two years. In four months they'll all be two years old. Now the Amazon, which hasn't shown up on my credit report yet.

I'm sure the Chase Sapphire is great, but I don't travel much these days and the $450 annual fee will likely each a good chunk of the cashback I earn.

I have an American Express Blue, that only offers 1% cashback. It's probably my least useful card after the Amazon.

What I'd like to do is ask Citi for a large limit increase, then dump all my other cards except the Sallie Mae for the 5% cashback on gas and groceries. I understand my score will probably take a hit, but it's unlikely I'm going to need credit in the near future or change jobs and things should work themselves out in the end if I keep everything up to snuff. Thanks again.

---

Unless your income is below 40k, just call the EO.  In a year you should have no issue in having what you need. 

Your amex 1% could be product changed possibly and may be worth inquirng.  Does it get amex offers at least?  Just try to keep 3 cards because that is ideal for scoring reasons.

You will have to look around at the procedure in getting a ultra low rate high limit DC.  Theres no intro period, as it involves applying for an airline card, asking for apr reductions, then doing a PC IIRC

[Calculon]

In the meantime, I decided to apply for the Penfed Platinum Visa Credit card as my Sallie Mae card will be closed February and I'd miss the 5% cashback on gas, so I plan on closing the Sallie Mae card.  After some consideration, I decided if I can get my Capitol One Qucksilver Card(oldest card) and Citi Double Cash(most used card) up to $10,000 a piece along with the $6,000 from PenFed, I doubt I'd ever go above 10% utilization.

I started with Capital One.  I chatted with them and asked for the number of a banker I could speak with bank because I have questions before I apply.  I was given the automated number, so I tried the online form, but it only offered me $8200.  When I called customer service, I was told I could only request an increase online or via automated phone, which I find hard to believe.  My question would be is there a number for Capital One where I can call to speak with a banker to ask some questions?  I'd need the same for CiTi as well.  Thanks for any help.