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Utilization has no memory... But should it?

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Anonymous
Not applicable

Re: Utilization has no memory... But should it?

We're not really agreeing to disagree as you already agreed with me.  You call them outliers, I simply think they are more common than you do.  There's a huge amount of people that likely fall in between Category 1 and Category 2.  In your definition of Category 1 you referenced those that use rewards to the fullest.  I'd venture to guess that half of those in Category 1 don't chase rewards as a whole.  I was an example of that.  My father is.  My girlfriend is.  A large percentage of my 92 employees are.  Again, we are in a credit forum where those that read this forum are far more educated in the way of credit than the majority; this IMO can tend to skew perception of the whole. 

 

Yes, those in Category 2 that are consistently paying interest every month are fantastic for the creditors out there.  There are plenty of individuals, however, that are in Category 1 or somewhere in between Category 1 and 2 that either don't chase rewards and/or have huge monthly spends (relative to those strictly in Category 2) that are able to provide substantial profit to creditors.

 

 

Message 51 of 54
sarge12
Senior Contributor

Re: Utilization has no memory... But should it?


@Anonymous wrote:

We're not really agreeing to disagree as you already agreed with me.  You call them outliers, I simply think they are more common than you do.  There's a huge amount of people that likely fall in between Category 1 and Category 2.  In your definition of Category 1 you referenced those that use rewards to the fullest.  I'd venture to guess that half of those in Category 1 don't chase rewards as a whole.  I was an example of that.  My father is.  My girlfriend is.  A large percentage of my 92 employees are.  Again, we are in a credit forum where those that read this forum are far more educated in the way of credit than the majority; this IMO can tend to skew perception of the whole. 

 

Yes, those in Category 2 that are consistently paying interest every month are fantastic for the creditors out there.  There are plenty of individuals, however, that are in Category 1 or somewhere in between Category 1 and 2 that either don't chase rewards and/or have huge monthly spends (relative to those strictly in Category 2) that are able to provide substantial profit to creditors.

 

 


I can agree to agree to most of that. I guess I would classify myself as an extreme transactor. Applying for cards that only do 1% rewards, but up to 300 dollar bonus, using until I get the bonus, then SD the card in favor of 2% rewards card. I am sure the banks hate me...I never ever ever pay 1 cent interest, then stop using their card once I get their big bonuses. It is their game, I just play it, and I play it to win.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 52 of 54
Anonymous
Not applicable

Re: Utilization has no memory... But should it?

Understood.  No doubt there are plenty of others on this forum just like you, but I question how many as a percentage of the whole are really out there.  I'm moving more in that direction having been a member of this forum for 4 or 5 months now and as a result having done a lot of reading.  I now only use rewards cards, never pay a penny of interest, but I have yet to chase any sign up bonuses.  On the flipside as I stated earlier, I went 15 years without using a single rewards card while putting a very healthy spend on my CC monthly. 

 

 

Message 53 of 54
sarge12
Senior Contributor

Re: Utilization has no memory... But should it?


@Anonymous wrote:

Understood.  No doubt there are plenty of others on this forum just like you, but I question how many as a percentage of the whole are really out there.  I'm moving more in that direction having been a member of this forum for 4 or 5 months now and as a result having done a lot of reading.  I now only use rewards cards, never pay a penny of interest, but I have yet to chase any sign up bonuses.  On the flipside as I stated earlier, I went 15 years without using a single rewards card while putting a very healthy spend on my CC monthly. 

 

 


Yes BBS, I agree most do not aggressively chase rewards...but getting a 300 dollar bonus makes me feel warm and tingly even if I dont need the money. On these forums however I am a lightweight rewards chasers. Some are raking in thousands by chasing CSR and such, and will probably cancel before next AF...I do not do that. In any case, when they keep sending me mail saying 250 dollar sign-up bonus yadayadayada...well, it's free money. Don't ever even take a chance of running a balance on one of those 2% rewards cards though. The citi DC card is at 13.24%, and that is their lowest APR.

TU fico08=812 07/16/23
EX fico08=809 07/16/23
EQ fico09=812 07/16/23
EX fico09=821 07/16/23
EQ fico bankcard08=832 07/16/23
TU Fico Bankcard 08=840 07/16/23
EQ NG1 fico=802 04/17/21
EQ Resilience index score=58 03/09/21
Unknown score from EX=784 used by Cap1 07/10/20
Message 54 of 54
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