topic Re: What to Dump, What to Get in Credit Cards

What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 13:38:12 GMT

I have a pile of cards here, not sure which ones I want to get rid of, suggestions are being requested.

I can tell you which ones we do NOT use... Victorias Secret, Evine, Barclay, Cap Ones

I do NOT like using CCs like VS, Evine, Barclay, Cap Ones on random purchases just to pay interest charges. Building my credit shouldn't require me to pay up to 30% APRs.

Based on these, should I bother applying for the Amex Everyday card?

Which of these cards should I close?

Are there any really good cards that have cash back or rewards with financing options like 0% for X months with a minimum purchase or something?

Not sure if I am doing it right but I like to use my cards for their 0% interest offers and pay them off before any interest hits. After that they're useless to me!

Utilization = 0%.

Age Card Bank CL CLI? Type 1 Menards Capital One 2500 NEVER I 1 Ashley Synchrony 2000 NEVER I 6 Walmart Synchrony 1200 NEVER AU 7 Evine Synchrony 1300 NEVER I 7 Paypal MC Synchrony 2000 NEVER I 11 Capital One Cap One 3000 1 Auto AU 11 Lowes Synchrony 6000 1 @open I 11 Fin Feather Fur Synchrony 2000 NEVER I 11 Walmart Synchrony 1800 NEVER I 15 Barclays Barclay 1300 1 Auto I 18 Victoria Secret Comenity 250 NEVER I 20 Capital One Cap One 2300 1 Auto I 33 Jared Jared 3000 1 Auto I

Edit: Wow, I can't even have a nice chart, it replaced the chart with this jumbled disaster ^

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 13:41:14 GMT

Interest charges are avoided by paying in full.

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 15:17:25 GMT

What are your credit scores and where are they from? What is your utilization? Also what is your average age of accounts?

EDIT: I see your utilization is at 0.

I would look at themanwhocan's cash back charts and see what makes the most sense. If you travel a lot, you would want to figure out if you stick to the same airline and hotels, if so, getting their cobranded cards can save some money and come with a nice bonus.

The Amex Everyday would make sense if you fly delta, and want a no AF place to park points. Pair that app with a PRG 50k bonus, or mb platinum 75k ( both charge cards). Although right now the longest 0% im seeing for any amex is 12 months unlike the usual 15 months.

Check around for prequalified offers, you could be targeted or find a 15k MR point offer on the ED, or 25-30 on the EDP.

Also how many inquiries do you have? And do you need a mortgage in the next 12 months?

Re: What to Dump, What to Get

redpat — Thu, 23 Jun 2016 13:53:43 GMT

@Anonymous wrote:
I have a pile of cards here, not sure which ones I want to get rid of, suggestions are being requested.

I can tell you which ones we do NOT use... Victorias Secret, Evine, Barclay, Cap Ones

I do NOT like using CCs like VS, Evine, Barclay, Cap Ones on random purchases just to pay interest charges. Building my credit shouldn't require me to pay up to 30% APRs.

Based on these, should I bother applying for the Amex Everyday card?

Which of these cards should I close?

Are there any really good cards that have cash back or rewards with financing options like 0% for X months with a minimum purchase or something?

Not sure if I am doing it right but I like to use my cards for their 0% interest offers and pay them off before any interest hits. After that they're useless to me!

Utilization = 0%.

Age Card Bank CL CLI? Type 1 Menards Capital One 2500 NEVER I 1 Ashley Synchrony 2000 NEVER I 6 Walmart Synchrony 1200 NEVER AU 7 Evine Synchrony 1300 NEVER I 7 Paypal MC Synchrony 2000 NEVER I 11 Capital One Cap One 3000 1 Auto AU 11 Lowes Synchrony 6000 @1 @Anonymous I 11 Fin Feather Fur Synchrony 2000 NEVER I 11 Walmart Synchrony 1800 NEVER I 15 Barclays Barclay 1300 1 Auto I 18 Victoria Secret Comenity 250 NEVER I 20 Capital One Cap One 2300 1 Auto I 33 Jared Jared 3000 1 Auto I

Edit: Wow, I can't even have a nice chart, it replaced the chart with this jumbled disaster ^

I guess you don't understand how reward cards are used. Use the cards then PIF before the due date, it can't get any easier than that.

Using credit cards just for the 0% isn't the best way to go. Pick a reward program that best suits you, only you can figure that out.

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 14:22:59 GMT

Okay, here's where I get lost.

Say Card A prints the bill on the 30th.

I make a charge on the 1st, and pay it off on the 20th. Since I charged and paid in the same month, nothing gets reported to the credit bureaus. I thought the whole purpose of using cards was to show I can manage debt properly??? So if Card A gets paid off every time I make a charge before a bill prints, then there's no usage ever being reported to the bureaus.

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 15:18:56 GMT

@Anonymous wrote:
Okay, here's where I get lost.

Say Card A prints the bill on the 30th.

I make a charge on the 1st, and pay it off on the 20th. Since I charged and paid in the same month, nothing gets reported to the credit bureaus. I thought the whole purpose of using cards was to show I can manage debt properly??? So if Card A gets paid off every time I make a charge before a bill prints, then there's no usage ever being reported to the bureaus.

please see my edited post above.

Also for scoring reasons you would ideally want to have at least one card report a balance of $5 but less than 30% of its total limit, each month. The rest pay off.

I am currently carrying a balance on my double cash and my AARP. Everything else, pay off weekly or even earlier.

Re: What to Dump, What to Get

kdm31091 — Thu, 23 Jun 2016 15:41:32 GMT

Just because the inquiries will combine doesn't mean everyone can justify having a PRG along with the Everyday. If you don't travel too much it may not be worth it. Have to look at every angle and do your due diligence, not just focusing on getting two cards for one inquiry. We need to be careful making suggestions that may not suit a person.

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 16:33:23 GMT

@Anonymous wrote:
Okay, here's where I get lost.

Say Card A prints the bill on the 30th.

I make a charge on the 1st, and pay it off on the 20th. Since I charged and paid in the same month, nothing gets reported to the credit bureaus. I thought the whole purpose of using cards was to show I can manage debt properly??? So if Card A gets paid off every time I make a charge before a bill prints, then there's no usage ever being reported to the bureaus.

If you PIF you will not have interest (unless you have a predatory card, i.e. Credit One, First Premier)

You need to pay the charges AFTER the statement cuts so your balance reports to the bureaus. You will have a payment due date and a statement close date. You need to pay LAST months balance in full before the payment due date to avoid paying interest. You only pay before the statement cut date if you want to keep your utilization under a certain %.

You can have a balance report and not pay interest. As long as you pay the statement balance in full by the next due date.

Hope I'm making sense here.

Re: What to Dump, What to Get

creditguy — Thu, 23 Jun 2016 16:37:29 GMT

Dump what you don't need or have a use for, quality over quantity is my mantra. And of course as Waverider said intrest can be avoided by paying in full. Building credit does not require one to pay intrest that is totally up you whether that happens or not.

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 17:01:47 GMT

The concept of PIF confused me a bit too. I had to ask lots of questions, but I think I have it straight now. If I am wrong, I am sure someone will set me right here.

As I understand it as long as you pay the statement balance by the due date you are good; regardless of new charges made between that statement and the due date. I'll use my Amazon Visa as an example:

My cutoff date this month was on the 10th. I got my statement a few days later around the 11th or so. It stated that I had a balance of $79, and that was due by July 7th. As long as I pay that by the due date, I am good.

Now, during that time I have had new charges. My balance is currently sitting at about $300. If I pay the $79 now, it will take my balance down to $221. Since that $79 would be applied to the statement balance first, that would still count as PIF even though I still have $221 worth of charges showing. Those charges were made after the previous period ended, and will go on the next statement.

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 17:09:53 GMT

Reading the forum can be confusing because there are several somewhat competing goals that need to be addressed in different ways:

1) Score optimization. Way overstressed IMO, but people seem to want to do it all the time! This is where you read about paying off the card BEFORE the statement cuts, except on 1 card which should show less than 9% of that cards CL. (Even though you can get 850s with a few cards reporting a balance, this is what gets repeated)

2) Show issuers (in particular the ones you DON'T have) that you can responsibly use cards. For this, you sometimes let large balances report on a few cards and then pay them off before the due date

3) Avoid interest: As others have said, if you have the funds you shouldn't pay interest, just pay the statement balance (not current balance) in full before the due date. ALWAYS try to do this!

4) Maximize rewards. Pick the "best" card for each transaction. (Depending on your spending and card mix and timing, this may lead to multiple cards reporting with balances)

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 17:12:09 GMT

@Anonymous wrote:
The concept of PIF confused me a bit too. I had to ask lots of questions, but I think I have it straight now. If I am wrong, I am sure someone will set me right here.

As I understand it as long as you pay the statement balance by the due date you are good; regardless of new charges made between that statement and the due date. I'll use my Amazon Visa as an example:

My cutoff date this month was on the 10th. I got my statement a few days later around the 11th or so. It stated that I had a balance of $79, and that was due by July 7th. As long as I pay that by the due date, I am good.

Now, during that time I have had new charges. My balance is currently sitting at about $300. If I pay the $79 now, it will take my balance down to $221. Since that $79 would be applied to the statement balance first, that would still count as PIF even though I still have $221 worth of charges showing. Those charges were made after the previous period ended, and will go on the next statement.

That is correct!!!

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 17:44:08 GMT

That appears right yes. You should only be charged interest on the STATEMENT BALANCE as stated.

Re: What to Dump, What to Get

CatOfSpades — Thu, 23 Jun 2016 17:54:30 GMT

@Anonymous wrote:
Okay, here's where I get lost.

Say Card A prints the bill on the 30th.

I make a charge on the 1st, and pay it off on the 20th. Since I charged and paid in the same month, nothing gets reported to the credit bureaus. I thought the whole purpose of using cards was to show I can manage debt properly??? So if Card A gets paid off every time I make a charge before a bill prints, then there's no usage ever being reported to the bureaus.

They still report your payment history every month. That helps your score, it just wouldn't factor into utilization because there wouldn't be any utilization. Companies don't report your payment history if you're not using the card (I've seen this with my own eyes), so as long as they are, it's pretty obvious to anyone looking at your report that your managing your cards responsibly.

Re: What to Dump, What to Get

Anonymous — Thu, 23 Jun 2016 18:43:35 GMT

You can let your balances report and there won't be interest if paid by the due date. But AFAIK some cards don't reset the grace period for a couple statements if you previously carried a balance.

Re: What to Dump, What to Get

RonM21 — Fri, 24 Jun 2016 21:54:30 GMT

That is true for some of the cards. The big thing is paying a balance by the due date to keep from paying interest. You can get what you want accomplished without paying interest.