New User/question about Sallie Mae card/general advice

[Anonymous]

Hi everyone, 

I'm kind of new to this whole credit card business, but after getting started, I got kind of addicted :-/ My first card ever was the Chase Freedom, back in September 2013 (CL currently $1000). Then I got Chase Sapphire (not Preferred) and Chase Amazon both in April of 2014 ($6500 and $2500, respectively). I applied and got the Amex BCE this past July 3 ($7200), then just today (July 7) had an irresistable urge to apply for the SallieMae Mastercard ($6300). Heaven help me, I'm also itching to apply for Discover It and maybe CapitalOne Quicksilver or Amex Fidelity or US Bank Cash+. I'm going to do my best to try to stay in the garden for at least 6 months, though.

I try to rationalize these cards by telling myself they all have a purpose (Freedom--rotating categories/oldest card/all purchases not specified, Sapphire--dining, Amex--Costco, and SallieMae--gas/groceries/Amazon), although I'm struggling to find a use for the Amazon card--it wins only in drug stores/office supply stores, neither of which I shop at much, and ties for dining with the Sapphire in non-Freedom months.

I don't travel much, so I use these cards mainly for cash back purposes, and until now (I'm 27), I've only ever had a debit card, so I'm hoping I won't go crazy with the new credit as I plan to use these cards just like my debit card, simply with the added benefit of cash back.

Having this background, I pose these questions to you experts on the forums. (1) For the SallieMae card, the 5% on gas/groceries is only up to $250 a month. Does this month start and end with the calendar month, or is it based on the statement month/billing cycle? (2) Do you think I should, after gardening of course, look into the Discover, Quicksilver, Amex Fidelity, and/or Cash+? I kind of want Discover just so that I can have all four major CC types, the Quicksilver since 1.5% on all purchases is better than the 1.1% for the Freedom, with the Amex Fidelity 2% is even better (not to mention backdating) although I don't have any Fidelity accounts, and with the Cash+ having more 5% categories is always nice. Are there better cards available? Or are 5 cards enough, at least for now?

With all these rewards cards available, I'm just overwhelmed by how much I could have been (and could still be) saving, but I don't want to be going overboard with the apps and damaging my score with too many inquiries/lowering my AAoA. 

Any advice you could give would be highly appreciated.

Thank you very much!

[sponge_gto]

(1) I'm pretty sure the limits apply to statement cycles.

(2) Discover is not a bad card since it complements the rotating categories of your Freedom. Another rotating 5% card is Citi Dividend which could be an additional complement.

The Amex Fidelity is perfect for "everything else" and the easiest redemption method is via the Fidelity Cash Management account which is a free checking product with no hard pull on application. Quicksilver on the other hand comes in handy when you make foreign transactions since the 1.5% cashback rate is easily compensated by the 0% foreign transaction fee. In fact I have often found that Capital One charges me with rates more favorable to currency conversion rates on Google.

Cash+ is not quite the card it used to be but definitely still worth getting, at least before it gets further nerfed.

Lastly I think you might consider getting Chase Sapphire Preferred in order to transfer your UR points from Freedom and Sapphire to the CSP account and then do miles conversions with airline partners, assuming you have any use for air travel since that usually gives the best value to your UR points.

[NoAnchoviesPlease]

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@Anonymous wrote:

Hi everyone, 

Having this background, I pose these questions to you experts on the forums. (1) For the SallieMae card, the 5% on gas/groceries is only up to $250 a month. Does this month start and end with the calendar month, or is it based on the statement month/billing cycle? (2) Do you think I should, after gardening of course, look into the Discover, Quicksilver, Amex Fidelity, and/or Cash+? I kind of want Discover just so that I can have all four major CC types, the Quicksilver since 1.5% on all purchases is better than the 1.1% for the Freedom, with the Amex Fidelity 2% is even better although I don't have any Fidelity accounts, and with the Cash+ having more 5% categories is always nice. Are there better cards available? Or are 5 cards enough, at least for now?

!

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So the gas/groceries/amazon limits are billing cycle. From the rules brochure (there's a paragraph like this for grocery and bookstore too btw):

– You will earn five (5) Rewards (which includes one
(1) Base Reward on the first $250 charged to the Credit Card
Account each billing cycle on Net Purchases of Gasoline.
Purchases must be submitted by eligible merchants using the
merchant category codes for purchases in this category to

qualify for the five (5) Rewards. Purchases made at merchants
that do not process transactions under these terms or that
use incorrect merchant category codes will not qualify for and
you will not receive the five (5) Rewards benefit. Barclaycard
is not responsible for incorrectly coded purchases. Purchases
in this category that exceed the specified monthly limit or
that are submitted by the merchant using incorrect merchant
category codes, will earn one (1) Base Reward.

If you plan on using the same vendor for your bonus, you will probably want to check after your first charge posts to make sure they report the category you want. I bought gas at a corner gas/service station last month and it reported as a repair shop not a gas station so... 1 base reward (1%). 

Likewise sometimes you may find a surprise... there are used electronics stores in California that report as home improvement categories, and may be other surprises out there too. 

I definitely don't change my buying habits to fit the categories, but when I'm going to shop for something, I will use the most advantageous card if possible. But that tank of gas I bought at the "auto repair shop with gas pumps" runs my car pretty much as well as if they'd reported as "fuel station."

As for your second question... gardening may be a good choice. I had a spree a couple of months ago, four new cards, a CLI on a fifth, and a massive increase in available credit. The only card I've applied for since then was an Amex revolver because it's the category I don't have. I'm going to see how much use I make of these cards, where they fit into my "lifestyle" and financial needs, and whether any of them have cool promos or APR reductions (not expecting either) in the next few months. 

Maybe see how the rewards work for you, build up that AAoA, and I think you'll see your options expand as time goes on. Best of success on your journey.

[Themanwhocan]

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@Anonymous wrote:

Hi everyone, 

I'm kind of new to this whole credit card business, but after getting started, I got kind of addicted :-/ My first card ever was the Chase Freedom, back in September 2013 (CL currently $1000). Then I got Chase Sapphire (not Preferred) and Chase Amazon both in April of 2014 ($6500 and $2500, respectively). I applied and got the Amex BCE this past July 3 ($7200), then just today (July 7) had an irresistable urge to apply for the SallieMae Mastercard ($6300). Heaven help me, I'm also itching to apply for Discover It and maybe CapitalOne Quicksilver or Amex Fidelity or US Bank Cash+. I'm going to do my best to try to stay in the garden for at least 6 months, though.

I try to rationalize these cards by telling myself they all have a purpose (Freedom--rotating categories/oldest card/all purchases not specified, Sapphire--dining, Amex--Costco, and SallieMae--gas/groceries/Amazon), although I'm struggling to find a use for the Amazon card--it wins only in drug stores/office supply stores, neither of which I shop at much, and ties for dining with the Sapphire in non-Freedom months.

I don't travel much, so I use these cards mainly for cash back purposes, and until now (I'm 27), I've only ever had a debit card, so I'm hoping I won't go crazy with the new credit as I plan to use these cards just like my debit card, simply with the added benefit of cash back.

Having this background, I pose these questions to you experts on the forums. (1) For the SallieMae card, the 5% on gas/groceries is only up to $250 a month. Does this month start and end with the calendar month, or is it based on the statement month/billing cycle? (2) Do you think I should, after gardening of course, look into the Discover, Quicksilver, Amex Fidelity, and/or Cash+? I kind of want Discover just so that I can have all four major CC types, the Quicksilver since 1.5% on all purchases is better than the 1.1% for the Freedom, with the Amex Fidelity 2% is even better (not to mention backdating) although I don't have any Fidelity accounts, and with the Cash+ having more 5% categories is always nice. Are there better cards available? Or are 5 cards enough, at least for now?

With all these rewards cards available, I'm just overwhelmed by how much I could have been (and could still be) saving, but I don't want to be going overboard with the apps and damaging my score with too many inquiries/lowering my AAoA. 

Any advice you could give would be highly appreciated.

Thank you very much!

---

Reward caps are based on each monthly statement period.

You should definitely garden 6 months. Rotating category cards quickly become less desirable as you get better cards. After 6 months, try for the Cash+, then  the Fidelity Amex and a second Sallie Mae Rewards card.

Once you obtain those, you can start moving the credit limits off the Chase Amazon and Chase Sapphire over to the Freedom, and then close or sock drawer those cards.

Fidelity Amex is not an amex card, there is no back dating. It is a Bank of America/FIA card, which uses the American Express credit card transaction network

You do realize your BCE is already worthless to you, since the Sallie Mae trumps it? And you haven't even received the card yet...

[Anonymous]

Thanks, everyone for the replies/advice.

That's interesting to hear about the nerfing of the Capital One. What was it like before?

And good point about checking how the stores are categorized for the different rewards--I've been reading numerous posts where people thought they were getting extra rewards but weren't because the merchant was coded differently than they thought. 

And, yeah, I realized that about the BCE. Shame, too, since I was so excited for my first Amex card, but it seems like it might be a sock-drawer card once I get the sign-up bonus  Well, I can still use it at Costco at least, that is, until I get the Fidelity card, which will then trump it again  

[H14]

Having the BCE is good for future AMEX card backdating. Even if you never find yourself needing/wanting another AMEX issued card, it's good to have in reserve. 

[mongstradamus]

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@H14 wrote:

Having the BCE is good for future AMEX card backdating. Even if you never find yourself needing/wanting another AMEX issued card, it's good to have in reserve. 

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espeically a no af amex is always good to have, just in case if you go over on gas or groceries its nice to have back up it may be only 3 and 2 percent. I also really like the SM and amex fidelity combo covers almost everything. 

[celluloid17]

I have quite a few of the cards you've mentioned (i.e. Sallie Mae, Cash +, Fidelity Amex, Freedom, Discover It, and more) and I have to say it gets a bit cumbersome juggling all the different rewards options.  For me personally, I'm finding that my appetite for credit was larger than my need for new credit.  I'm now somewhat regretting some of my recent apps because as I compare the cards I've obtained against what I actually spend, I realize it may have been wiser to have fewer cards that I can grow with rather than many that I have to manage.  

If I were you (and again, this is my own biased and borderline jaded perspective), I would skip apping for the Discover card.  It's really not necessary compared to what you currently have or could have in your portfolio.  I would attempt to move the CLs from the Chase Amazon and Sapphire cards to your Freedom and then SD those cards and maybe eventually just close them if your profile can handle the loss of TLs compared to your utilization (they will stay on your reports for 10 years).   

The US Bank Cash + is a decent (but kind of overrated) card if you can make use of the categories that they offer.  The food categories have been divided, so if you want a dedicated card to use for eating out, you have to use up your two 5% categories on Restauruants and Fast Food (to cover all your bases), at least in the quarters when your Freedom doesn't have 5% back on restaurants.  The other 5% categories are kind of lackluster or don't inspire much frequent use. 

I think the Fidelity card is a great catch all card and unlike the Quicksilver card, doesn't require 3 HPs just to be approved.  In conjunction with the Sallie Mae card and the Freedom, you would have an excellent trio of cashback options year round.  

I wouldn't worry about the foreign transaction fees if you're not going to be doing any international travel in the foreseeable future.  If you do at some point, perhaps then you could apply for the Chase Sapphire Preferred and take advantage of a sign up bonus.  

As far as the AMEX BCE, perhaps you could see about PC'ing it to the Amex TrueEarnings card, which is the Amex-Costco cobranded card that gets you 3% back on gas, 2% back on restaurants and travel expenses, and 1% back on everything else.  There's no annual fee except for your annual Costco membership, which you're paying already.  Of course, you would definitely use your Fidelity Amex at Costco over this because you'll get 2% back, but it's nice to have a real AMEX in the mix (as mentioned, the Fidelity is not a "real" Amex) for extra protection when making large purchases and for the warranty extensions.

So to recap, I would say you can't go wrong with these 4 cards for your overall spend:

1. Sallie Mae

2. Chase Freedom (even more so because it seems you have a checking relationship with Chase and get the 10% bonus on points and if you do end up obtaining a CSP at some point, the UR points are easily transferable)

3. Fidelity Amex

4. Amex TrueEarnings

*5. Cash + is an outlier if you can really make use of the categories or as a back-up for the other cards.

Just my .02cents!

Best of luck!

[longtimelurker]

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@Anonymous wrote:

Thanks, everyone for the replies/advice.

That's interesting to hear about the nerfing of the Capital One. What was it like before?

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The reference was to the Cash Plus.    This card was REALLY nerfed, the reward structure was unsustainable, but they made a lot of bad changes at once.   Briefly:

1) The 5% categories were uncapped, as compared to $2K per quarter now.   So this was a card that could give you back real money.   And this was partly because:

2) Removal of certain categories.   The card had Bill Pay, Home Improvement and Airfare as choices for 5%.   The first one, combined with being uncapped, was the major killer, people paid huge bills (in some cases commercial power bills) and got 5% back.  The others were also too costly, Home Improvement can cover lots of things!

And much more minor:

3) Originally, every time you redeemed $100, you got an extra $25 back.  Again, with people getting lots of cash back, they got lots of extra $25 as well.  This has now changed to once per year.

4) Various enhancements if you had a banking relationship.  Depending on the type of bank account, you would get a (slightly) higher percentage.   This was removed.

Now as always with major nerfing, those that had the card often feel it is completely ruined.  But those new to it, evaluating without prior history, can determine if the card in its current state is a good fit, and for many it will be.  Only thing to be aware of, the company is clearly willing to reduce the benefits, so they might do it again.

And don't talk to me about the Citi Premier!

[Themanwhocan]

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@longtimelurker wrote:

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@Anonymous wrote:

Thanks, everyone for the replies/advice.

That's interesting to hear about the nerfing of the Capital One. What was it like before?

---

The reference was to the Cash Plus.    This card was REALLY nerfed, the reward structure was unsustainable, but they made a lot of bad changes at once.   Briefly:

1) The 5% categories were uncapped, as compared to $2K per quarter now.   So this was a card that could give you back real money.   And this was partly because:

2) Removal of certain categories.   The card had Bill Pay, Home Improvement and Airfare as choices for 5%.   The first one, combined with being uncapped, was the major killer, people paid huge bills (in some cases commercial power bills) and got 5% back.  The others were also too costly, Home Improvement can cover lots of things!

And much more minor:

3) Originally, every time you redeemed $100, you got an extra $25 back.  Again, with people getting lots of cash back, they got lots of extra $25 as well.  This has now changed to once per year.

4) Various enhancements if you had a banking relationship.  Depending on the type of bank account, you would get a (slightly) higher percentage.   This was removed.

Now as always with major nerfing, those that had the card often feel it is completely ruined.  But those new to it, evaluating without prior history, can determine if the card in its current state is a good fit, and for many it will be.  Only thing to be aware of, the company is clearly willing to reduce the benefits, so they might do it again.

And don't talk to me about the Citi Premier!

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Actually, I have the Citi Premier on my list of cards to obtain. But just for the 2 sign up bonuses, then cancel.

Bad idea?