topic Re: Getting A Better Rewards Card in Credit Cards

Getting A Better Rewards Card

CreditPhoenix — Wed, 26 Aug 2015 03:11:50 GMT

Hi Everyone,

I'm a 772 FICO with an investment property mortgage and one credit card, a BofA Cash Rewards Preferred Card. I've come to realize that the BofA card isn't as good as other options out there. However, in the not too distant future, I want to get another mortgage and don't want to jeopardize my credit.

I'm thinking of getting a Chase Sapphire Preferred card as everyone seems to rave about it. But I'm also considering adding a Chase Freedom card to the mix as it gives so much cash back, or points. But will this hurt my credit getting two new cards at once? And also, since I've had the BofA card the longest, should I keep it even if I'm not using it?

If someone could please advise, I'd greatly appreciate it.

Thanks.

Re: Getting A Better Rewards Card

Anonymous — Wed, 26 Aug 2015 03:15:22 GMT

My favorite rewards card is the Capital One Quicksilver with 1.5% cash back. The points are given to you right away instead of having to wait until the statement date.

Re: Getting A Better Rewards Card

Anonymous — Wed, 26 Aug 2015 04:17:59 GMT

@CreditPhoenix wrote:
Hi Everyone,

I'm a 772 FICO with an investment property mortgage and one credit card, a BofA Cash Rewards Preferred Card. I've come to realize that the BofA card isn't as good as other options out there. However, in the not too distant future, I want to get another mortgage and don't want to jeopardize my credit.

I'm thinking of getting a Chase Sapphire Preferred card as everyone seems to rave about it. But I'm also considering adding a Chase Freedom card to the mix as it gives so much cash back, or points. But will this hurt my credit getting two new cards at once? And also, since I've had the BofA card the longest, should I keep it even if I'm not using it?

If someone could please advise, I'd greatly appreciate it.

Thanks.

Please, please only apply for a card after seeing that it fits your needs. Do not get it based on what others think. It's all about YOUR personal preference and lifestyle.

~~No, it will not hurt your credit because Chase consolidates hard pulls into one when applying for more than one credit card.~~

Yes, keep your BOA card in order to maintain your average age of credit once you get your new cards.

Edited per FinStar's comment.

Re: Getting A Better Rewards Card

CreditPhoenix — Wed, 26 Aug 2015 03:26:49 GMT

Thank you both for your responses.

Honestly, I don't really know what the best card is for me. I try and spend only about $1K/mo. My biggest expenses are rent and mortgage, but I don't think I can put either on a credit card. I own my car.

I just figure that I should get a travel card so that my wife, our daughter, and I can get a cheap vacation somewhere. We live fairly modestly. As a matter of fact, to reach the $4K spent in 3 months, I'd probably put my wife as an approved user so that we'd reach $4K. I might not reach it on my own. (Also, we'd get an additional 5,000 points this way.)

I don't need a travel card per se and could perhaps just get the best cash awards card out there. I don't believe my BofA card is cutting it. What card would you guys suggest? The Southwest Card limits us to Southwest. Some people seem to like the Barclays card, or maybe the Capital One Venture.

Any advice you could give me about the right card would be greatly appreciated. And will BofA cancel my card of lower my limit if I stop using it?

Re: Getting A Better Rewards Card

FinStar — Wed, 26 Aug 2015 03:27:49 GMT

@Anonymous wrote:
@CreditPhoenix wrote:
Hi Everyone,

I'm a 772 FICO with an investment property mortgage and one credit card, a BofA Cash Rewards Preferred Card. I've come to realize that the BofA card isn't as good as other options out there. However, in the not too distant future, I want to get another mortgage and don't want to jeopardize my credit.

I'm thinking of getting a Chase Sapphire Preferred card as everyone seems to rave about it. But I'm also considering adding a Chase Freedom card to the mix as it gives so much cash back, or points. But will this hurt my credit getting two new cards at once? And also, since I've had the BofA card the longest, should I keep it even if I'm not using it?

If someone could please advise, I'd greatly appreciate it.

Thanks.
Please, please only apply for a card after seeing that it fits your needs. Do not get it based on what others think. It's all about YOUR personal preference and lifestyle.
No, it will not hurt your credit because Chase consolidates hard pulls into one when applying for more than one credit card.
Yes, keep your BOA card in order to maintain your average age of credit once you get your new cards.

Sorry but this is not entirely accurate. In a variety of cases, the outcome can be one HP if applications are submitted simultaneously, but others have also reported getting two HPs on the same CR. So, let's not dismiss the other possibility since at the end of the day it's still YEMV.

Likewise, there can also be an AAoa impact (depending on the OP's overall CR profile) if the OP adds two tradelines to the mix.

Re: Getting A Better Rewards Card

Anonymous — Wed, 26 Aug 2015 03:30:29 GMT

I think rather than applying for travel credit card, you should just apply for citi double cash, no annual fees and 2% cash back on every purchase. and just cash out when you're ready to travel.

Re: Getting A Better Rewards Card

myjourney — Wed, 26 Aug 2015 03:31:40 GMT

Also a key is when exactly do you plan on getting this mortgage because this can determine your next step be it cards now or wait till later?

Re: Getting A Better Rewards Card

CreditPhoenix — Wed, 26 Aug 2015 03:35:01 GMT

Hi Red,

Good tip. I'll look into that card. Thanks.

Re: Getting A Better Rewards Card

FinStar — Wed, 26 Aug 2015 03:36:31 GMT

@Anonymous wrote:
I think rather than applying for travel credit card, you should just apply for citi double cash, no annual fees and 2% cash back on every purchase. and just cash out when you're ready to travel.

OP - if you do not travel frequently (not enough to sustain the value of a travel card since most have an AF), then the above suggestion or what SteelCity66 proposed might be some options to consider.

Now, assuming your monthly baseline expenses are roughly $1K, then annually that would translate into about $240 c/b.

Re: Getting A Better Rewards Card

CreditPhoenix — Wed, 26 Aug 2015 03:36:05 GMT

Hi Journey,

I think the earliest I would get another mortgage would be next summer. But it may not happen until the summer of 2017. Is that so far off that I shouldn't even be concerned with this?

Re: Getting A Better Rewards Card

myjourney — Wed, 26 Aug 2015 03:37:38 GMT

@CreditPhoenix wrote:
Hi Journey,

I think the earliest I would get another mortgage would be next summer. But it may not happen until the summer of 2017. Is that so far off that I shouldn't even be concerned with this?

Not a problem then ....go get some new cards you have plenty of time before the mortgage then

Re: Getting A Better Rewards Card

CreditPhoenix — Wed, 26 Aug 2015 03:38:58 GMT

Hi Fin,

Sorry for the stupid question, but what are OP and AF? And I likely spend over $1K/mo, but try to save as much as I can. Realistically, I probably do closer to $1,300-$1,500 for the year, maybe even up near $2K.

Re: Getting A Better Rewards Card

Anonymous — Wed, 26 Aug 2015 03:44:11 GMT

@CreditPhoenix wrote:
Hi Fin,

Sorry for the stupid question, but what are OP and AF? And I likely spend over $1K/mo, but try to save as much as I can. Realistically, I probably do closer to $1,300-$1,500 for the year, maybe even up near $2K.

OP : Original Poster (you)

AF : annual fee

Re: Getting A Better Rewards Card

CreditPhoenix — Wed, 26 Aug 2015 03:47:20 GMT

Hi Fin,

Sorry, one other question. Even though I don't travel a lot, it seems like the 40K or 50K mile promotions out there are a great deal. Cash back cards don't seem to have up front bonuses like that. This is what attracts me to the Chase Sapphire / Barclays / Southwest / etc.

Or are there cash back promotions I don't know about?

Re: Getting A Better Rewards Card

FinStar — Wed, 26 Aug 2015 03:51:31 GMT

@CreditPhoenix wrote:
Hi Fin,

Sorry for the stupid question, but what are OP and AF? And I likely spend over $1K/mo, but try to save as much as I can. Realistically, I probably do closer to $1,300-$1,500 for the year, maybe even up near $2K.

No such thing as a stupid question. My bad! We are accustomed on using a variety of acronyms and forget that some newer folks may not be familiar with all the jargon.

OP = Original poster

AF = Annual Fee

If you are definitely looking for a no-nonsense cash back rewards program, then the Citi Double Cash (2%) might be a suitable contender. There's also the the Fidelity American Express card (2%) - underwritten by FIA/Bank Of America. On the lower side of popular cash back rewards, there's the Capital One Quicksilver (1.5%).

And, aside from your investment property/mortgage and vehicle, is the Cash Rewards card the only revolving tradeline on your file?

Re: Getting A Better Rewards Card

CreditPhoenix — Wed, 26 Aug 2015 04:01:51 GMT

Hi Fin,

Yes, the only revolving credit I have is the mortgage and my BofA card. My car is paid in full. My wife and I both pay our bills in full each month. Although, for some reason, MyFico is saying that I have a balance beyond $0 for my BofA card. I instruct BofA to take the full balance every time, but by the time of the ACH, I've built up more of a balance. I don't know why they can't just take the full balance at the time of my payment. But then again, it's not like I got docked with any fees or anything. I don't get it.

My wife is in a car lease. I guess if we shared a credit card or something, we could put it on that card. God knows I don't want a car payment for as long as I can go without it (knock on wood).

Re: Getting A Better Rewards Card

Anonymous — Wed, 26 Aug 2015 04:20:51 GMT

Remember, that 40k points = $400. Cash back cards don't have this because the majority are non-AF. Look at AF cards, and they generally have a higher sign up bonus.

Re: Getting A Better Rewards Card

ddemari — Wed, 26 Aug 2015 06:00:52 GMT

OP- reading your message, it sounds like you like cash back cards but the BOA card is pretty lackluster in terms of rewards.

If you are interested in a travel card for every once and while travel and do not want to pay an annual fee, what about the travel rewards amex from PenFed?

If you join PenFed, it will be one inquiry to join and you can use that same pull for I believe 60 to 90 days to apply for credit products. You could go for their Amex Card, probably get a massive limit and then apply for another one of their rewards with the same pull! Something to think about maybe?