Picking a card strategy - final decision

[smc733]

Hi everyone,

So I know I've made a number of threads about this, but I'm really ready to just make a final decision here

I have two strategies for moving forward, and I am still busted up about which one to pick.

Strategy one:

Cut down to three cards

Two primary:

-BoA Cash Rewards 1-2-3:  6k/10.99

-Discover More:  3.25k/12.99

Backup:

-Citi Dividend M/C:  6k/14.24

Strategy two:

Chase Freedom as only spending card (7k/17.99)

Keep BofA and Amex BCE/Citi active

The pros and cons I've found to be

Strategy 1:

+Keep relationships with companies that have been receptive to my requests for changes, etc...

+Cards will all be low-interest, fair rewards, decent CLs

+BofA and Discover More will be the best overall rewards-maximizing opportunity (1, 2, 3, 5 and ShopDiscover)

-Is a two card strategy, more complex

-Neither card has redemption options like chase (all points, as low as 20 dollars)

Strategy 2:

+Accrue all points in one card

+Maximize rewards with a card that is good with 1%/5%

+Chase MAY lower the rate some day (Don't intend to carry a balance, but still...)

-Chase hasn't been cooperative in the past with terms

-Is carrying only one card with me bad?

So what does everyone thinks?

[LS2982]

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@smc733 wrote:

Hi everyone,

So I know I've made a number of threads about this, but I'm really ready to just make a final decision here

I have two strategies for moving forward, and I am still busted up about which one to pick.

Strategy one:

Cut down to three cards

Two primary:

-BoA Cash Rewards 1-2-3:  6k/10.99

-Discover More:  3.25k/12.99

Backup:

-Citi Dividend M/C:  6k/14.24

Strategy two:

Chase Freedom as only spending card (7k/17.99)

Keep BofA and Amex BCE/Citi active

The pros and cons I've found to be

Strategy 1:

+Keep relationships with companies that have been receptive to my requests for changes, etc...

+Cards will all be low-interest, fair rewards, decent CLs

+BofA and Discover More will be the best overall rewards-maximizing opportunity (1, 2, 3, 5 and ShopDiscover)

-Is a two card strategy, more complex

-Neither card has redemption options like chase (all points, as low as 20 dollars)

Strategy 2:

+Accrue all points in one card

+Maximize rewards with a card that is good with 1%/5%

+Chase MAY lower the rate some day (Don't intend to carry a balance, but still...)

-Chase hasn't been cooperative in the past with terms

-Is carrying only one card with me bad?

So what does everyone thinks?

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I like #1.

But why not keep them all?? Use them when you feel like it. Seems like a waste to close any.

[smc733]

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@LS2982 wrote:

I like #1.

But why not keep them all?? Use them when you feel like it. Seems like a waste to close any.

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I can keep them all, but I won't be able to use them all.

[Anonymous]

I like a mix of 1 and 2. Don't just carry one card but try to maximize the cards the best you can. If you have points on all cards and there far from being enough its not really beneficial.

[LS2982]

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@smc733 wrote:

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@LS2982 wrote:

I like #1.

But why not keep them all?? Use them when you feel like it. Seems like a waste to close any.

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I can keep them all, but I won't be able to use them all.

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You don't have to use them, if you have any reaccuring charges let them go though it just for activity. Not telling you how to run your finances but it seems like those cards being open with activity could eventually get you some luv from other cards you have.

[smc733]

How bad is it to have only two cards?

I really wanted to just cut down to two cards (BofA and Discover) for simplicity's sake (not worried about getting CLIs, etc.), but I'm not sure if using both cards will be that detremental to FICO, or something.

[Ron1]

closing credit cards might hurt your score. I don't carry all my credit cards in my wallet. I only bring what I need it for that day.

Ron.

[Anonymous]

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@smc733 wrote:

How bad is it to have only two cards?

I really wanted to just cut down to two cards (BofA and Discover) for simplicity's sake (not worried about getting CLIs, etc.), but I'm not sure if using both cards will be that detremental to FICO, or something.

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Not bad bad. You can certainly get by as long as merchants accept the cards. Id just make sure there the most rewarding for your situation.

[smc733]

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@Anonymous wrote:

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@smc733 wrote:

How bad is it to have only two cards?

I really wanted to just cut down to two cards (BofA and Discover) for simplicity's sake (not worried about getting CLIs, etc.), but I'm not sure if using both cards will be that detremental to FICO, or something.

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Not bad bad. You can certainly get by as long as merchants accept the cards. Id just make sure there the most rewarding for your situation.

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I think Visa and Discover should cover pretty much everywhere I spend.  I don't do Costco, and I do use Sam's Club on occasion (father is a member), but they do accept Discover.

I'm OK if there's a small FICO hit, but my feeling is that Citi, Amex and Chase have treated me like garbage, won't work with me, and have never done anything to try to earn my business.  I feel that BofA and Discover have, on MANY occasions, bent over backwards to try to assist me and be of service to earn my business.  If I were down to just two cards, I could really do well with rewards, and it would be easier to manage.

If I needed to carry a balance, I can use BofA for that, and use Discover exclusively while I'm doing so.

Citi:  Gives me the run around on any CLI or APR request, and doesn't seem to want to budge to help me

Chase:  We've discussed this ad-infinitum

Amex:  HIGH APR, unwilling to give me a CLI, so-so customer service.

[Anonymous]

Freedom is a better card than Discover IMO. They both have bonus spend but with Discover you don't get 1% back everything else until you meet their minimum spend requirement. I prefer UR over Shop Discover as well.

I wouldn't cancel any IMO. Sock drawer what you won't use. Chase has some of the best sign up bonuses out there. I would try to keep a relationship with them. They have been very good to me, but I know you have not been very pleased with them. Amex I am fed up with, so I am with you on that one. 

Keeping your cards open lowers your utility. I think that is a plus.

Sometimes what we think of in theory does not pan out in reality. I have worked over my strategies as well, and I can tell you, I have changed them over time. Try plan 1 for 6 months and see if it is working for you. If not, then at least you still have your other cards to revamp your game plan.

I would look at it this way. Which card do you feel is most beneficial to you? Even if you don't care for the bank, I would use what best suits YOUR needs. AMEX on my poo list, but I use my Hilton card like crazy because I want my points. It benefits me the most in the end....especially when I go take that free European vacation. LOL