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Regular Contributor
Posts: 200
Registered: ‎09-21-2013
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Suggestions for a new CC

Hi all! I need some help/suggestions from the community on a new CC, and possibly a new one for DH. I'll start by listing our current cards and then I'll give a description of our spending habits.
 
Me:
NFCU Flagship Rewards: opened sometime last year, 25K CL
Capitol One QS One: opened in 2011, $2500 CL
 
DH:
Visa through a CU: opened in 2000, CL is somewhere around $3500
Chase Slate: opened in 1999, CL is somewhere around $2500
 
We use the NFCU card for the vast majority of our spending (DH is AU). Rewards redemption is pretty flexible and we get 2% on everything. I know there are other cards that give better percentages back on certain categories, but we're happy with this as our everyday card and like having all our rewards in one place.
 
I want to get rid of my Cap One card. I've already tried the EO and the best that they're willing to do for me was to switch it to QS One, which still has an AF. Rewards are 1.5% on everything, which is not as good as my NFCU card. It is my oldest open CC (I stupidly closed my college CCs and went cash-only for years, they're now off my CR), but I'm a AU on DH's Chase card, so that shows up on my CR as my oldest CC. I feel comfortable getting rid of a 3-year old card that doesn't meet my needs and costs me money.
 
DH wants to close the CU Visa. It's issued through a CU in his hometown and he wants to close out his membership there since we don't live anywhere near it. The card does not have an AF, but it also doesn't have any rewards. The only benefit is that he's had it for 14 years - but his Chase card is a year older. We will keep the Chase card, but will probably call and ask to PC to a Freedom, as we don't need a balance transfer card. Currently we use the Chase card for a small recurring charge.
 
If I understand correctly, we should each have a minimum of two CCs to maximize our CS, correct? We both have high 700/low 800 CS with no baddies. Other than the CCs stated, we each have a car loan and several SLs, no mortgage. At this point, neither of us want more than two CCs - a primary and a backup. (DH has had CC debt in the past and his parents have had a lifelong struggle with it, so he is cautious. I could manage multiple cards without a problem, but don't want to add more to the mix until we've paid off some SLs. It's all on autopilot, but it's still a lot of due dates and numbers floating around my head.) We don't ever carry a balance on any card, util on the NFCU is under 10% each month and PIF and the others are at 0 balance.
 
If I close my Cap One and DH closes the CU Visa, that will leave us each with one CC primarily in our name and one as an AU. Is that enough to maximize our CS, or do we each need two CCs primarily in our name? Also, when you apply for a mortgage, is it true that the lender looks at the CLs on your CCs and considers them as potential debt, even if your current balance is 0? I've read that this is a myth, albeit a commonly believed one. (Mortgage is still a couple years off, but it's something we'd like to keep in mind). How generous is Chase with CLIs? DH has never asked for one, though I'm sure they'd give him one. If we end up only having the two cards, however, I'm not comfortable with the backup card having that low of a CL.
 
If we each have to have two cards to maximize our CS, we need suggestions on what to get! I don't think we spend enough overall to justify another card with an AF, so we probably want to look at no-AF cards. DH spends a lot on gas, so with my average gas spending added in, we'd probably make good use of a gas card. We spend a fair amount on groceries for just two people. Some restaurants, some travel, some online shopping - it's really all over the place.
 
I like the idea of the Sallie Mae card - does anyone have experience linking it with Sallie Mae SLs? I'll probably have to call and ask what type of loans are eligible for linking and whether you can link it with a SL account in your spouse's name or just your own - but if anyone knows that info, please let me know. Any other suggestions for us?
Epic Contributor
Posts: 23,250
Registered: ‎10-23-2007
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Re: Suggestions for a new CC

I would each have 3 credit cards for maximum scoring.

For you:

Perhaps Chase Freedom

Amex Blue Cash Preferred or Costco

Fidelity Amex for 2% would be my #1 pick (backed by FIA which is Bank of America

 

For him:

NAVY! Why has he not joined Navy and gotten a credit card?!

2. Discover (not a bad choice for both of you actually)

 

you could always add a NavCheck at Navy with probably the full $15k CL for each of you but I really would suggest having at least 2 cards from other places besides Navy too to build higher CL's somewhere that isn't known for throwing such huge lines out.

Fico Scores: EQ- 668 DCU., TU 704 Best Buy, EX 700 Chase (2/5/15)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
67 Cards and Counting :smileytongue:
Epic Contributor
Posts: 23,250
Registered: ‎10-23-2007
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Re: Suggestions for a new CC

oh and DH should product change that Slate over to Freedom perhaps or worse case get a new Chase card and MOVE the CL from the slate over and then close it... Slate is only good for BT and then get rid of in my opinion.

Fico Scores: EQ- 668 DCU., TU 704 Best Buy, EX 700 Chase (2/5/15)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
67 Cards and Counting :smileytongue:
Senior Contributor
Posts: 3,528
Registered: ‎01-19-2009
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Re: Suggestions for a new CC


Creditaddict wrote:

oh and DH should product change that Slate over to Freedom perhaps or worse case get a new Chase card and MOVE the CL from the slate over and then close it... Slate is only good for BT and then get rid of in my opinion.


since theres no annual fee on Slate why close

Epic Contributor
Posts: 23,250
Registered: ‎10-23-2007
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Re: Suggestions for a new CC


john398 wrote:

Creditaddict wrote:

oh and DH should product change that Slate over to Freedom perhaps or worse case get a new Chase card and MOVE the CL from the slate over and then close it... Slate is only good for BT and then get rid of in my opinion.


since theres no annual fee on Slate why close


I would rather PC it but otherwise I would get a new chase card that earns rewards and just move this CL.

Fico Scores: EQ- 668 DCU., TU 704 Best Buy, EX 700 Chase (2/5/15)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
67 Cards and Counting :smileytongue:
Regular Contributor
Posts: 200
Registered: ‎09-21-2013
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Re: Suggestions for a new CC

Thanks for the suggestions!

 

DH is a NFCU member - he just doesn't have a seperate CC through them, as we both use the Flagship card that's in my name. If we have seperate CCs through NFCU, would we be able to combine our points? We use the points primarily for travel, so its nice to have them all in one place so we can book tickets together without a hassle. But yes - he is a member and eligible for a CC on his own.

 

On Navcheck - I've seen it mentioned around here. Isn't it an overdraft protection for 15K? I've never overdrafted an account, so I've never considered it - but from what I've read here, it shows up on your CR like a CC, right? Sounds like it would be a good option for us each to have another CC TL without actually having another CC to worry about. How does Navy handle it? Do you have to draw money from it periodically, or does it stay open and keep reporting if you never use it?

 

I've been considering Fidelity Amex - thanks for that suggestion. I'm hesitant on BCP - I had an Amex Blue in college, so I could probably get it backdated to 1999 or 2000, BUT I know I paid that account late a few times because I was disorganized in those days. It was 10+ years ago, but I've heard that Amex has a long memory for things like that. Costco's a no-go as we don't shop there, but Discover might work well.

 

DH...sigh...he's REALLY apprehensive about CCs because his parents use them as an extension of their income. He's learned otherwise from me, but he's still very cautious. Heck, I'm cautious myself. I think I'll be able to talk him into replacing the credit union card with something new, but I'm not sure he'll want a third card, so Navcheck might be the way to go for him. We definitely want to keep the Chase TL because it's an old account - we just don't need a BT card. Freedom would probably be more useful.

Epic Contributor
Posts: 23,250
Registered: ‎10-23-2007
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Re: Suggestions for a new CC

I wouldn't worry about lates on amex as they are not even on your credit anymore... they have long memory but if you paid them in the end then that memory has probably faded.

Fico Scores: EQ- 668 DCU., TU 704 Best Buy, EX 700 Chase (2/5/15)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
67 Cards and Counting :smileytongue:
Regular Contributor
Posts: 200
Registered: ‎09-21-2013
0

Re: Suggestions for a new CC


Creditaddict wrote:

you could always add a NavCheck at Navy with probably the full $15k CL for each of you but I really would suggest having at least 2 cards from other places besides Navy too to build higher CL's somewhere that isn't known for throwing such huge lines out.


This is a general question, since I'm still pretty new to the forums here. I've read this general advice here before - to establish relationships with various lenders. How important is this, really? I understand the "not putting all your eggs in one basket" concept, but don't banks usually want your business, regardless of whether you have a previous relationship? Just trying to understand. Aren't applications based on your CS, income, etc? With a reasonable income and a high FICO, would I be denied for a future loan or CC or whatever just because I don't have a current account with a lender? That has never been my experience. What exactly am I preparing for by establishing relationships with various lenders? Thanks to anybody who answers - just trying to understand the advice, which is commonly repeated around here.

Epic Contributor
Posts: 23,250
Registered: ‎10-23-2007
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Re: Suggestions for a new CC


Rikku wrote:

Creditaddict wrote:

you could always add a NavCheck at Navy with probably the full $15k CL for each of you but I really would suggest having at least 2 cards from other places besides Navy too to build higher CL's somewhere that isn't known for throwing such huge lines out.


This is a general question, since I'm still pretty new to the forums here. I've read this general advice here before - to establish relationships with various lenders. How important is this, really? I understand the "not putting all your eggs in one basket" concept, but don't banks usually want your business, regardless of whether you have a previous relationship? Just trying to understand. Aren't applications based on your CS, income, etc? With a reasonable income and a high FICO, would I be denied for a future loan or CC or whatever just because I don't have a current account with a lender? That has never been my experience. What exactly am I preparing for by establishing relationships with various lenders? Thanks to anybody who answers - just trying to understand the advice, which is commonly repeated around here.


Well if you have 3 cards and 2 are under $500 and only 1 is $10k I might think as a banker that you might not be able to handle larger lines or why wouldn't all your lines be closer to $10k.

computer applications will probably not be looked at in this way but a manual review might turn up a question or two about it.

Fico Scores: EQ- 668 DCU., TU 704 Best Buy, EX 700 Chase (2/5/15)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
67 Cards and Counting :smileytongue:
Regular Contributor
Posts: 200
Registered: ‎09-21-2013
0

Re: Suggestions for a new CC

Thanks, that makes sense - so it makes sense to try to get all of your credit lines to be about the same. Is this only a factor in determining initial CLs on new cards, or important for mortgages or other types of credit?

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