04-12-2011 08:23 AM
I think I'm going to just use:
-Trusty BofA Cash Rewards Visa 1% for all
-Discover for 5%
-Citi and Chase as backups, because apparently you can only accumulate quarterly totals of $60 in the 5% categories on Freedom
04-12-2011 09:03 AM
because apparently you can only accumulate quarterly totals of $60 in the 5% categories on Freedom
Discover caps quarterly bonus rewards, too. And their caps are generally lower than Chase's. It's not always the same, though, the caps vary by quarter.
04-12-2011 09:22 AM
God, I'm so confused right now... :/
I just redeemed $25 of $25.12 of my BankAmericard's Cash Back, so if there was ever a time to switch this to their Accel Cash Rewards Amex, this is that time...
So now I have a couple combos in my head
-BofA as Visa
-Chase Freedom only
-BofA as Amex
04-12-2011 10:34 AM
Or I could use my brain, damn cold medicine...
Citi and Discover have different rotating categories...
Citi for everything where Discover isn't 5%, and Discover where it IS 5%.... Much better!
04-12-2011 09:55 PM
So would it be a killer if I just used Freedom for everything, as my all around, to accrue rewards as quick as possible, and sock drawer the rest?
At first, no. However, after 2 or 3 months of disuse of the Discover card, FICO will start lowering your score by a few points...after 6 months of disuse FICO will lower it by a lot (showing a lack of activity on a credit card is a slight, then a moderate, negative).
This is not true. FICO scores have no memory as far as utilization. If you let your cards all report a 0 balance for a month, you've already done maximum "damage" if you can even call it that. Let an account report a $20 balance the next month, and you get your 10 points or however many back immediately.
FICO does have a memory of a lack of recent activity. If you report a zero balance for 6 months on a cc (sock drawer), they will penalize you. The OP said he would not use any other cards, therefore charging an occasional $20 will not be performed; they would report a zero balance for a prolonged period of time. That will lower the FICO score until the under-utilized cc's report a balance (which could take up to a month).
This was posted from my October 11, 2008 Score Report. Screen capture link. I was showing nonstop activity on Chase, zero on all others (they were in the "sock drawer").
What’s hurting your FICO® score
The negative factors listed here are reasons why your FICO® score is not higher. You should focus on changing the behavior that caused these negative factors. These factors are listed in order of their impact to your score, the first has the greatest negative impact and the last has the least.
Please note that a negative factor can be provided even if you are better than the national average of FICO® high achievers on that factor. In all likelihood, this means that your FICO® score is already quite high. The fact that you are still receiving a negative factor means that there is still some room to work on that factor.
There is no recent activity on your revolving accounts.
Your credit report shows no open revolving accounts [?] or it does not report recent information (such as balance or credit limit) about any of your revolving accounts. Your FICO score evaluates your mix of credit cards, installment loans and mortgages. People who demonstrate responsible use of different types of credit are generally less risky to lenders.
What to do about this: You might want to show new activity on any credit card. If you already have a credit card, you can do this by using it and paying it back on time. If you don't have a credit card, consider opening one. However, be aware that the credit inquiry associated with applying for a new card may lower your FICO score in the short term."
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO