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Frequent Contributor
SSA_2013
Posts: 396
Registered: ‎05-27-2013
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Re: What should I app for when I leave the garden?

[ Edited ]
I'm starting to think I may end up getting both. BML for stores other than Amazon. Amazon for special promotions/long term offers. Now the dilemma....when do I app. Sept/October 2013 or January 2014.
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09Lexie
Posts: 26,348
Registered: ‎09-13-2012
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Re: What should I app for when I leave the garden?

Established Contributor
RushXTC
Posts: 792
Registered: ‎07-01-2013
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Re: What should I app for when I leave the garden?


SSA_2013 wrote:

Well, I've looked over my accounts and I like the cards I have. My issue is I decided that I should probably add a financing card/account for larger purchases.

 

1) Bill Me Later (I like the hidden utilization factor + different stores accept it... but don't like that you really don't know what you have as a credit line)

2) Amazon Store Card (I do shop quite a bit at Amazon and would benefit from the 6,12, 24 months of financing when I decide to make a large purchase + GE credit limit increases)

 

I don't know if it would be beneficial to have both or just one. Any advice or recommendations?

 

PS: myjourney + lexie: I'm still in the garden. I'm just curious as to what I should pick up in a few months :smileyhappy:


 

Do both... BML doesn't report to the CB, Amazon does. So regardless of which way you go, IT still benefits you... I have both as well.

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takeshi74
Posts: 3,051
Registered: ‎06-05-2013
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Re: What should I app for when I leave the garden?

[ Edited ]

SSA_2013 wrote:

Bill Me Later (I like the hidden utilization factor + different stores accept it... but don't like that you really don't know what you have as a credit line)

 


You'll know as you use it.  BML indicates that you have "at least X available credit" for your account on their site.

 


SSA_2013 wrote:

 

I don't know if it would be beneficial to have both or just one. Any advice or recommendations?

 


Beneficial is always highly subjective.  It can certainly be handy to have both but you need to decide based on your specific credit, situation, needs, priorities, preferences, etc.  I was using BML quite a bit as I do a lot of online shopping and used eBay Paypal quite a bit.

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Open123
Posts: 4,194
Registered: ‎02-23-2011
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Re: What should I app for when I leave the garden?

For Bill Me Later, is it something only used for online purchases, or does it come with a physical card too?  

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SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
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Re: What should I app for when I leave the garden?

So here's my thought on all of this:

You say the only type of "card" that you expect to need is one for financing large purchases. Which means that you don't even really need a "card", you just need a low interest rate financing vehicle. So here is what I have found to be the best options for this scenario.

1. Obtain financing at the time of purchase from the retailer in question. Many stores (assuming this is for a retail purchase) maintain special financing options when you purchase a large enough product. Furniture stores, for example, constantly run 0% for 3-5 year deals. You can't get much better than that.

2. Get a new card with a prolonged 0% initial APR offer right before purchase. 9, 12, 18 months at 0% gives you a long time to work off that debt. If you can't get rid of it by the end of that time period, you probably shouldn't have purchased the item anyway. Again, that is assuming some sort of retail purchase like a small appliance, not major home/car repairs, or furnishing an entire kitchen :smileyhappy:

3. Use a Home Equity Line of credit. These interest rates are favorable compared to credit cards, and can have very flexible repayment terms.

4. Call an existing creditor and ask if they can give some sort of interest rate promotion for a large purchase that you plan to make with their card. You would be surprised how often a bank will say yes to this if you have been a reliable customer and you are assuring them a large transaction.

I would say that holding onto a tradeline for the purposes of "I might need it later" is likely not the way to obtain the best rates or help your score in the long term. Especially when we are talking about credit cards, which have awful interest rates. As long as you manage your credit appropriately, the option to finance a large purchase should be there when you need it. In fact, this might be the only scenario where getting credit when you "need" it, is actually preferable.

In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
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SSA_2013
Posts: 396
Registered: ‎05-27-2013
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Re: What should I app for when I leave the garden?

[ Edited ]

Thank you to everyone! 

 

@ SnackTrader: My main interest in these 2 accounts is that the promotions usually don't end after the initial intro period. When you get a regular card for 12 or 18 months it goes back to the original rate. With these the promotions are almost always available. So I don't get a hit everytime I want to upgrade computers, security systems, etc. My main idea is to upgrade my Mac + TV. I never carry a balance unless it is to show that 1-9% utilization. BUT I like the option of freeing up cash for a few months and finish paying off an item 1-2 months before the interest kicks in. This way I get the best of both 0% and cash to work for me. This is one reason I like the Bill Me Later account. I can get the benefits of a few months of holding onto the cash + no high utilization damage + VISA/MasterCards are all available for emergencies or rewards. The same goes for the Amazon Account. I just don't like the idea of using a regular card to carry a balance even if is at a lower interest rate. 

 

The reality is that is why I got the Lowes card as well. Whenever I use it for monthly expenses I get 5% off and PIF. If I ever need appliances or long term projects I can use it for the 5.9% for 84 months fixed or the usual 12-18 Months at 0%. 

 

 

Valued Contributor
Themanwhocan
Posts: 1,773
Registered: ‎04-04-2013
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Re: What should I app for when I leave the garden?

I hear they Bork'd the Citi Forward so it doesn't give 5% on Amazon purchases anymore.

 

You might consider the Sallie Mae World Mastercard. 5% on bookstores upto $750 purchases/month, so that should cover some of your Amazon transactions. And 5% on upto $250 Gas, and 5% upto $250 grocery store purchases. This card is on my short-list of cards I want.

 

So the Forward would cover your fast food/restaurants, and the Sallie Mae would cover grocery stores. Seems like a good fit. You gotta eat something...

 

 

Have you considered switching the Discover More to a Discover IT?


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armbenderc
Posts: 1,339
Registered: ‎09-11-2012
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Re: What should I app for when I leave the garden?


SSA_2013 wrote:

hutchj wrote:

SSA_2013 wrote:

Well, I've looked over my accounts and I like the cards I have. My issue is I decided that I should probably add a financing card/account for larger purchases.

 

1) Bill Me Later (I like the hidden utilization factor + different stores accept it... but don't like that you really don't know what you have as a credit line)

2) Amazon Store Card (I do shop quite a bit at Amazon and would benefit from the 6,12, 24 months of financing when I decide to make a large purchase + GE credit limit increases)

 

I don't know if it would be beneficial to have both or just one. Any advice or recommendations?

 

PS: myjourney + lexie: I'm still in the garden. I'm just curious as to what I should pick up in a few months :smileyhappy:


What cards do you have now?



Chase Sapphire Preferred, Chase Freedom, Citi Forward, Citi Dividend, Discover More, Lowes, Capital One, and the Ring.


I think you need Amex :smileyvery-happy:

2013 Approvals: Discover IT - 3/1, Amex BCE - 3/4, CSP - 5/4, Barclay Ring - 6/12, BoA Privileges Cash - 6/27, Citi TY Preferred - 8/6, OCCU Duck - 11/4, USBank (Cash+) - 11/22, Wells Fargo - 12/21, Nordstrom - 12/29

12/19/2013, $100k+ Available Credit. Total Util: 0-1%
Valued Contributor
SnackTrader
Posts: 1,566
Registered: ‎09-15-2012
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Re: What should I app for when I leave the garden?

I appreciate the detailed response, SSA. I'm glad to see you have thought it over, and that's really what is most important. Impulsive credit decisions are the only bad ones.

How two people accomplish the same goal will frequently differ, so my attempts at financing large purchases will not likely involve the same methods you are using. But if, in the end, we both get to the same place with minimal financial impact, then it was worth it.

Good luck with any app you end up completing!

In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014

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