04-09-2013 02:59 AM - edited 04-09-2013 03:02 AM
Ok here's the backstory. After finding out that my Barclay's arrival World MC just a 1% cashback card (2% if I use it for statement credits towards travel and 2.2% if booked through barclays) and how partial redemption can't be topped up with payment......I realized that this card is very different from what I was originally expecting.
So, if I am to cancel this card right after I collect my sign up bonus (1k spend for 40k miles), will there be any issues? Is there like a minimum period of time I'm supposed to keep this account? Will I be blacklisted of some sort?
I already have the CSP, so I will be using that card mostly for my travel expenses since the Barclay's isn't as good as I expected.
I understand that I already took the inquiry hit, but it's an inquiry on my TU so I don't really care about that tbh. The only negative effect is therefore my AAoA will be dragged down right?
How often does Barclay start reviewing accounts after it's opened? 1, 3, or 6 months? I went on a spree and there's a chance they might AA me anyways, so I figured I might as well collect the miles, redeem it, and close the account before they close it for me. How long is the "risky" time period for AA/FR after an account is opened with them?
How strict is Barclays with leaving balances? I rarely leave any but I just want to find out what their policies are and how strict they are.
Or should I just collect the bonus, leave the account open and throw the card into the drawer?
Please tell me your opinions.
04-09-2013 03:55 AM
what are the risk of me getting AA by barclays? I was thinking that if they are most likely going to close my account because of my app spree, I might as well do it before they get to. That way, it will show as closed by consumer, rather as closed by lender. Does that make any difference?
04-09-2013 05:45 AM
Like Amex FR, I think the frequency of Barclays AA is way overstated here. It's not in their interest to close accounts for no good reason.
It's possible, since they do state it, that they are less tolerant of non-use than some issuers, but having them close it for that reason is fine. Remember FICO doesn't score closed by customer/closed by issuer any differently, so it's only on manual review, and you would have a chance to explain.
Certainly all issuers hate "use for bonus and cancel" and can use that as a reason not to give you another card (Recently I saw either Chase or Citi have language in their T&Cs about this being a reason for denial). So I would get the bonus, use it to some extent to maximize the bonus if possible (i.e. some $75 travel thing to get the 2.2) and then cancel just before the AF hits. That's usual behavior ("The card wasn't as useful to me as I thought, so I can't justify the annual fee" rather than" I signed up just for the bonus and I will do the same with another of your cards suckers!")
04-09-2013 06:17 AM - edited 04-09-2013 06:21 AM
I hear a lot here on the forum that closed by the lender message is a bad think.In my opinion is not
There is tons of reason why the account was closed by the lender.
04-09-2013 06:23 AM
04-09-2013 07:13 AM
04-09-2013 07:19 AM
You already took HP. I would say keep it to take a chance. Use it the card regularly for everyday thing. I used my Barclays Rewards MC to pay utilities yesterday. It has been over 6 months. They have not done anything yet. Stop worrying. You should be fine.
04-09-2013 07:21 AM
The min redemption is 2500 points, I just checked online so that blog was wrong. Also the 10% bonus is when you redeem your miles for travel, not when you book via Barclaycard. So you could go buy a $400 Delta ticket and book from Delta.com, redeem 40,000 miles for a $400 credit and earn 4,000 miles back. It's a 2.2% card when redeemed for travel or a 1% card for everything else, and since the AF is waived, you have nothing to lose. Maybe try a PC to the cash rewards card as an alternative solution.
04-09-2013 07:22 AM
Couldn't you contact Barclays to see about a PC to a different card? They have like two dozen cards to choose from. I was just approved for the Barclays Rewards card ($2500 CL). You get 2% cash back for utilities, gas, and groceries! I read on the Barclays website that they do close accounts after they have been inactive for 3 months.
You cannot change to other cards within 12 months.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.