topic Re: Credit Card Cannibalization in Credit Cards

Credit Card Cannibalization

Anonymous — Sun, 15 May 2016 22:34:46 GMT

Is there anyone here who has the chase-duo or trio (freedom/CSP) or (freedom/unlimited/CSP) and finds themselves using other cards much less? Or conversely, is there anyone here who has the above products and manages to maintain a decent spend on other cards? I ask because in the future (1-2 years or so) I'd like to have the freedom, unlimited, CSP and Marriott premier cards. I'd supplement that with my quicksilver, discover it and hopefully BOA travel rewards. Without those Chase cards, other products fill some nice gaps. QS or DC as a general spender, Discover for rotating categories, BOA cash rewards for gas, Amex BCE for groceries, BOA travel rewards for annual fee-free miles (I'm working on hitting preferred rewards status)...etc. Given how wonderful I think it is to be able to amass all of your points with UR to use as cash back, airlines or hotels, I feel I'd use the other cards much less. I feel I'd pass up that extra 1-1.5% on purchases just to maintain my spend through ultimate rewards-more so when I have a trip/vacation coming up. As of now this is all for educational purposes. I guess if you spend enough each month, you can maintain each card. I'm just curious as to how people who do have lots of cards including Chase, manage their spend.

Re: Credit Card Cannibalization

Anonymous — Sun, 15 May 2016 22:50:24 GMT

I have 4 cards total. Chase Ink +, CSP, Freedom Unlimited, and Quicksilver. Once I hit the Quicksilver 500 spend I don't think I can justify using it over the Chase cards. (I actually don't even know why I have the QS since it is the same as the FU) I actually don't see any reason for me to get anything else other than the regular Freedom for rotating bonus.

UR are the best out there so it's tough to use an alternate card that doesn't rack em up.

Re: Credit Card Cannibalization

Anonymous — Sun, 15 May 2016 23:00:43 GMT

I have CSP + FU for now, and to be honest my goal is to get the regular Freedom, and an Ink business card and pretty much run 90% of my spend through Chase for UR points.

I like having other options as a backup, but Chase really has the best redemption for me, although I don't travel super often - when I do it's usually long distance so being able to score free flights, free hotel stays, or free class upgrades is a super win.

Re: Credit Card Cannibalization

kdm31091 — Sun, 15 May 2016 23:22:20 GMT

As I have mentioned many times on these forums, for most people, there is little to no point (rewards wise) in spreading spend across more than a few cards. You only have so much to spend every month, and every card you dilute it across is just going to water down your rewards, making them add up slowly and potentially making it so you either can never cash out or to where it just takes forever and isn't worthwhile.

I am definitely in favor of concentrating spend. Where you may give up 1% or 2% on some purchases, you are gaining in simplicity and adding to the same pile of rewards more quickly. For some products and reward systems, it doesn't matter as much (i.e. cash back cards with no redemption threshold), but I still prefer a centralized approach. Keeping track of a dozen+ cards in a spreadsheet to maximize a dollar or two a month just isn't something that I find to be worthwhile although others enjoy it.

Re: Credit Card Cannibalization

Anonymous — Sun, 15 May 2016 23:32:59 GMT

@kdm31091 wrote:
As I have mentioned many times on these forums, for most people, there is little to no point (rewards wise) in spreading spend across more than a few cards. You only have so much to spend every month, and every card you dilute it across is just going to water down your rewards, making them add up slowly and potentially making it so you either can never cash out or to where it just takes forever and isn't worthwhile.

I am definitely in favor of concentrating spend. Where you may give up 1% or 2% on some purchases, you are gaining in simplicity and adding to the same pile of rewards more quickly. For some products and reward systems, it doesn't matter as much (i.e. cash back cards with no redemption threshold), but I still prefer a centralized approach. Keeping track of a dozen+ cards in a spreadsheet to maximize a dollar or two a month just isn't something that I find to be worthwhile although others enjoy it.

Agreed. Also add in the time you have to track all these spends and rotating the cards just to earn rewards. Surely, it gets old and boring after a while.

Re: Credit Card Cannibalization

kdm31091 — Sun, 15 May 2016 23:43:56 GMT

@Anonymous wrote:
@kdm31091 wrote:
As I have mentioned many times on these forums, for most people, there is little to no point (rewards wise) in spreading spend across more than a few cards. You only have so much to spend every month, and every card you dilute it across is just going to water down your rewards, making them add up slowly and potentially making it so you either can never cash out or to where it just takes forever and isn't worthwhile.

I am definitely in favor of concentrating spend. Where you may give up 1% or 2% on some purchases, you are gaining in simplicity and adding to the same pile of rewards more quickly. For some products and reward systems, it doesn't matter as much (i.e. cash back cards with no redemption threshold), but I still prefer a centralized approach. Keeping track of a dozen+ cards in a spreadsheet to maximize a dollar or two a month just isn't something that I find to be worthwhile although others enjoy it.
Agreed. Also add in the time you have to track all these spends and rotating the cards just to earn rewards. Surely, it gets old and boring after a while.

I agree. I used to be in the mindset of opening a card for this, a card for 1% more on that, etc but honestly, it just gets old at some point and not worth the time/effort for the minimal gain. Unless the given category on a card is something you spend a ton of money on, I think most people are better off with a couple solid cards and concentrating the spend there.

There's also the time factor like you said. For the amount of time spent keeping track of a dozen or two dozen cards to maximize $2 or $4 a month, one could easily be clipping coupons to save the same or more in less amounts of time.

Re: Credit Card Cannibalization

Anonymous — Sun, 15 May 2016 23:48:32 GMT

Thank you very much guys. You all essentially said exactly what I was thinking. As I mentioned, I have no Chase products right now but my future goal is to have the trio. With those I would have the Marriot Premier because I like the free annual night and silver elite status. I don't travel every month but when I do, I like the ability to combine ultimate rewards points with Marriott and United. Also I figure the QS would be a good "alternate back-up option" which would get replaced if I ever get in with Citi for the Double Cash. I also like my Discover it for the rotating categories that differ from the Freedom. Thanks again guys. You really did provide the answers I were expecting and coincidentally looking for. When I grow up (a year or two of gardening) I'd like my line up to eventually be...

Chase Freedom

Chase Freedom Unlimited

Chase Sapphire Preferred

Chase Marriott Premier Rewards

Quicksilver or Double Cash

Discover it

Hopefully these cards aren't nerfed before I get a chance to enjoy them and reel in those sign up bonuses lol

As many of you have said, forgoing 1% or so is worth it in my opinion if all of my spend can be spread across 3 cards that can give me cash back, or travel whenever.

Re: Credit Card Cannibalization

Anonymous — Sun, 15 May 2016 23:58:37 GMT

Not everyone has the same spending habits so what cards will work best for you is ultimatley going to be your call. I like the simplicity of a 2% every thing card. However, most of my spending is in three categories: dinning, groceries, and utilities. I find the 5% rotating catergories on my Chase Freedom and Discover work great as they cover my dinning categories 6 months of the year. Chase Freedom is also awesome right now in the grocery catergory. I get alot of cash back on this card. Discover adds up quickly. I have a Huntington Voice with 3% rotationg category that fills in the gaps. I use my BOA cash rewards mostly for automatic Utility bills and Cable. Right now using my Amex just for cell phone 10% back and it fills in for groceries too. I dont mind using 3-4 cards a month. But much beyond that I can see where it would start to get complicated. I do have a low apr card to I keep balances on. I could see the need for a travel card. Using several TL is always a boost for your credit report.

Re: Credit Card Cannibalization

Anonymous — Mon, 16 May 2016 00:16:12 GMT

@Anonymous wrote:
Not everyone has the same spending habits so what cards will work best for you is ultimatley going to be your call. I like the simplicity of a 2% every thing card. However, most of my spending is in three categories: dinning, groceries, and utilities. I find the 5% rotating catergories on my Chase Freedom and Discover work great as they cover my dinning categories 6 months of the year. Chase Freedom is also awesome right now in the grocery catergory. I get alot of cash back on this card. Discover adds up quickly. I have a Huntington Voice with 3% rotationg category that fills in the gaps. I use my BOA cash rewards mostly for automatic Utility bills and Cable. Right now using my Amex just for cell phone 10% back and it fills in for groceries too. I dont mind using 3-4 cards a month. But much beyond that I can see where it would start to get complicated. I do have a low apr card to I keep balances on. I could see the need for a travel card. Using several TL is always a boost for your credit report.

You bring up a good point. My hopes are to have the Chase trio which would drive me to strive for my first list. In the event that doesn't happen I'd keep most of my current cards and spread across this hopeful line-up...

Quicksilver: general

BoA 1-2-3: gas

Amex BCE: groceries

Discover it: rotating

BoA Travel Rewards: miles

Marriott Premier: hotel

Re: Credit Card Cannibalization

Anonymous — Mon, 16 May 2016 00:17:34 GMT

@Anonymous wrote:
Thank you very much guys. You all essentially said exactly what I was thinking. As I mentioned, I have no Chase products right now but my future goal is to have the trio. With those I would have the Marriot Premier because I like the free annual night and silver elite status. I don't travel every month but when I do, I like the ability to combine ultimate rewards points with Marriott and United. Also I figure the QS would be a good "alternate back-up option" which would get replaced if I ever get in with Citi for the Double Cash. I also like my Discover it for the rotating categories that differ from the Freedom. Thanks again guys. You really did provide the answers I were expecting and coincidentally looking for. When I grow up (a year or two of gardening) I'd like my line up to eventually be...

Chase Freedom
Chase Freedom Unlimited
Chase Sapphire Preferred
Chase Marriott Premier Rewards
Quicksilver or Double Cash
Discover it

Hopefully these cards aren't nerfed before I get a chance to enjoy them and reel in those sign up bonuses lol
As many of you have said, forgoing 1% or so is worth it in my opinion if all of my spend can be spread across 3 cards that can give me cash back, or travel whenever.

I agree 100% as you can see your ideal line up is my exact line up without the Chase Marrriot. I am not into multiple annual fee cards but I wil glady dish out $95 a year to pool all my rewards from Freedom Unlimited and Freedom card. To me after careful research and as someone who takes 2-3 trips/vacations a year the UR rewards are the best deal out there. I opended up my CSP last month and the Freedom Unlimited this week (after a recon, denied, declined battle with Chase) and by the end May with bonus and normal spend of May I will have

60,000(CSP)+15,000(FU)+ 10,000 (Freedom)=85,000 UR points

Even if I decided to cash that out that is $850.00.......transfer to partners and its AMAZING I can take my two kids to Cancun for Labor day for 27000 miles round trip on SWA.

I will keep my QS as a great back up and my Discover just to diversify though I wish I would have waited on it becuase other than the categories it wont get much love in its first year.

Re: Credit Card Cannibalization

Anonymous — Mon, 16 May 2016 00:29:52 GMT

@Anonymous wrote:
@Anonymous wrote:
Thank you very much guys. You all essentially said exactly what I was thinking. As I mentioned, I have no Chase products right now but my future goal is to have the trio. With those I would have the Marriot Premier because I like the free annual night and silver elite status. I don't travel every month but when I do, I like the ability to combine ultimate rewards points with Marriott and United. Also I figure the QS would be a good "alternate back-up option" which would get replaced if I ever get in with Citi for the Double Cash. I also like my Discover it for the rotating categories that differ from the Freedom. Thanks again guys. You really did provide the answers I were expecting and coincidentally looking for. When I grow up (a year or two of gardening) I'd like my line up to eventually be...

Chase Freedom
Chase Freedom Unlimited
Chase Sapphire Preferred
Chase Marriott Premier Rewards
Quicksilver or Double Cash
Discover it

Hopefully these cards aren't nerfed before I get a chance to enjoy them and reel in those sign up bonuses lol
As many of you have said, forgoing 1% or so is worth it in my opinion if all of my spend can be spread across 3 cards that can give me cash back, or travel whenever.
I agree 100% as you can see your ideal line up is my exact line up without the Chase Marrriot. I am not into multiple annual fee cards but I wil glady dish out $95 a year to pool all my rewards from Freedom Unlimited and Freedom card. To me after careful research and as someone who takes 2-3 trips/vacations a year the UR rewards are the best deal out there. I opended up my CSP last month and the Freedom Unlimited this week (after a recon, denied, declined battle with Chase) and by the end May with bonus and normal spend of May I will have

60,000(CSP)+15,000(FU)+ 10,000 (Freedom)=85,000 UR points

Even if I decided to cash that out that is $850.00.......transfer to partners and its AMAZING I can take my two kids to Cancun for Labor day for 27000 miles round trip on SWA.

I will keep my QS as a great back up and my Discover just to diversify though I wish I would have waited on it becuase other than the categories it wont get much love in its first year.

That is awesome! I'm hoping when my time comes to take part of the good life I can rack up those bonuses too!

Re: Credit Card Cannibalization

wasCB14 — Mon, 16 May 2016 01:59:16 GMT

I have 13 open CC accounts, 1 closed account, and 2.5 years of total history. 6 of my 13 open accounts are AF travel cards.

There's definitely a point at which rewards programs on regular spend cannibalize each other, but I find signup bonuses and travel perks (if you actually use them) can contribute a lot of marginal value. As I've gotten more history and participated in a greater number of rewards programs, the hurdle has definitely become higher as far as what it will take for me to apply for something new.

Re: Credit Card Cannibalization

Anonymous — Mon, 16 May 2016 02:16:31 GMT

its even worse if you try to spread spend on a points card. Just get a good cash back card, one good travel card (if you even want one) and a good low apr card and you should be fine. I wouldn't open a new card just to save an extra 1% on one category

Re: Credit Card Cannibalization

redpat — Mon, 16 May 2016 02:32:27 GMT

The only cards I swipe for personal use are EDP and prestige now for meals and travel since I fly AA and get 1.60 redemption.

Busines ink+ gives me a boat load ur points so I stopped using CSP personally. for travel and meals.

Venture and Discover in the SD even with 5% categories because of dilution reward spend. I'm thinking of closing them.

For the life of me I don't understand app sprees. I compare them to shotgun weddings, they never end well, lol.

Re: Credit Card Cannibalization

Kevin86475391 — Mon, 16 May 2016 02:37:34 GMT

@Anonymous wrote:
Is there anyone here who has the chase-duo or trio (freedom/CSP) or (freedom/unlimited/CSP) and finds themselves using other cards much less? Or conversely, is there anyone here who has the above products and manages to maintain a decent spend on other cards?

Well technically this includes me. I have the CSP and Freedom, but I'm not a travel rewards person; I'm strictly cashback. So while the Freedom is a true 'work horse' in my cashback lineup, I only got the CSP because they were offering an attractive $500 cashback + $50 cashback for adding an AU, and I did indeed take it all as pure cashback. I'm not interested in hotel stays or airline tickets. I don't travel at all. I haven't been on a plane once in the last 15+ years and stay in a hotel for overnight trips at most once a year. So I'm all about the cashback. As such my focus is on optimizing the cashback I can get, so I happily opt to use my Discover It, Citi Double Cash, or BofA Cash Rewards whenever I can earn more than the Freedom or CSP are earning. Ultimate Rewards are no more significant to me than Discover, Citi, or BofA cashback. As such I also have no reason to ever get a Freedom Unlimited. Why would I want 1.5% cashback when I can get at least 2% cashback with the Citi DC (because again, UR points aren't special to me)? I guess if the FU offered a really attractive signup bonus I might consider getting it just for that and ditching it later, just as I'm doing with the CSP since the 2% dining isn't all that special. But as a vehicle for UR points? Nope, doesn't matter.

That said, I certainly see why a travel rewards seeker would choose to focus on Ultimate Rewards, and if I were going to pursue travel rewards I'd certainly focus on Chase cards.

@kdm31091 wrote:
There's also the time factor like you said. For the amount of time spent keeping track of a dozen or two dozen cards to maximize $2 or $4 a month, one could easily be clipping coupons to save the same or more in less amounts of time.

Well for me optimizing cashback rewards on credit cards is fun, whereas clipping coupons would make me miserable. So the time investment isn't really a factor so much as one activity is pleasant and the other is not. Every month my grocery store sends me targeted coupons for items I'd be buying anyway, so the coupons really do have value. However, I always get at least a little annoyed having to keep track of them, buy the quantity/size needed, and remember to turn them in at checkout. By contrast I never feel at all annoyed stopping to consider which credit card will give me the most cashback when I go to pay.

Re: Credit Card Cannibalization

EdMan63 — Mon, 16 May 2016 14:37:29 GMT

@kdm31091 wrote:
@Anonymous wrote:
@kdm31091 wrote:
As I have mentioned many times on these forums, for most people, there is little to no point (rewards wise) in spreading spend across more than a few cards. You only have so much to spend every month, and every card you dilute it across is just going to water down your rewards, making them add up slowly and potentially making it so you either can never cash out or to where it just takes forever and isn't worthwhile.

I am definitely in favor of concentrating spend. Where you may give up 1% or 2% on some purchases, you are gaining in simplicity and adding to the same pile of rewards more quickly. For some products and reward systems, it doesn't matter as much (i.e. cash back cards with no redemption threshold), but I still prefer a centralized approach. Keeping track of a dozen+ cards in a spreadsheet to maximize a dollar or two a month just isn't something that I find to be worthwhile although others enjoy it.
Agreed. Also add in the time you have to track all these spends and rotating the cards just to earn rewards. Surely, it gets old and boring after a while.
I agree. I used to be in the mindset of opening a card for this, a card for 1% more on that, etc but honestly, it just gets old at some point and not worth the time/effort for the minimal gain. Unless the given category on a card is something you spend a ton of money on, I think most people are better off with a couple solid cards and concentrating the spend there.

There's also the time factor like you said. For the amount of time spent keeping track of a dozen or two dozen cards to maximize $2 or $4 a month, one could easily be clipping coupons to save the same or more in less amounts of time.

To piggyback off of this response I also think its makes much more sense to spread your spend over a few cards if maximizing rewards is your objective. I think having a specific credit card for every little expense can get old after awhile. When rebuilding or when first coming to myFico its easy to get caught up in the whirlwind of apps and new accounts but to me, over time, that thrill will wear off and doing what's practical and useful becomes the long-term goal moreso than acquiring new accounts for every little thing.

As with any hobbyist or collector, interest become more refined over time and quality takes precedence over quantity. That's why I believe getting the right cards to match your spending needs and habits from the beginning makes more sense than getting tons of useless cards that you end up closing and adding inquiries and risking AA for nothing.

Re: Credit Card Cannibalization

galahad15 — Mon, 16 May 2016 14:47:04 GMT

I have a total of 4, AF-free 2% cashback cards, which I find to be very useful b/c I can earn points on each of them by using each one every month moderately, but then I PIF at the end of the month for all of them (except for DC which I am also currently revolving a 0% promo on). That way I don't have to worry about having to spend so much on any one single 2% card that I have to revolve on it and not be able to PIF.

Re: Credit Card Cannibalization

driftless — Mon, 16 May 2016 15:38:23 GMT

I am also in the keep it simple, fewer is better camp. My QS is now my back up, second bank card. We just closed on a house and after the mortgage has reported for 3 - 4 months I will probably also add Ink & FU. That would give me 4 personal cards, 1 business card, with all but one being Chase. My wife has a CSP, Freedom and QS with all of her spend now on CSP and Freedom.

Re: Credit Card Cannibalization

Anonymous — Mon, 16 May 2016 15:16:56 GMT

Congrats on the house! To all that have chase products, I'm jelly. Lol however, I believe I'll get there next year.

Re: Credit Card Cannibalization

driftless — Mon, 16 May 2016 15:19:19 GMT

Thanks. We also bank with Chase. There is a real advantage in having both my wife and I concentrate on the Chase products.