topic Re: Do I need CFU anymore? in Credit Cards

Do I need CFU anymore?

kshurika — Mon, 10 Jun 2019 01:07:16 GMT

Back in the early days of my credit rebuild, I turned a CFU decline into an acceptance with a call to recon. The next day, I got my 1K raised to 7K. That was 2 1/2 years ago. Since then, my CL has been raised to 12K (by request) and then a surprise bump to 15K a couple of months ago.

About two years ago, I was approved for a CSP with a 16.7K SL. Since then, I haven't asked for a CLI because my numbers have gone down as my Util has gone up. I'll be back to ~ 1% in about 4 months.

There's the long-winded backstory. Now, the question: Should I transfer the 15K on the CFU over to the CSP and close the CFU? I know the CFU gets 1.5%, but between my Disc and my Amex BCP, I almost never use it. I won't be apping for new cards anytime soon.

Thoughts?

Re: Do I need CFU anymore?

SBR249 — Mon, 10 Jun 2019 01:15:26 GMT

It depends on what your rewards strategy is. The Disco and BCP sounds like a straight up cashback strategy while the CSP is more of a UR-based travel rewards strategy (though I guess URs can also be cashed in). Many people use the CFU because they can find UR redemptions at much more than 1¢ per point thus making it worthwhile despite the seemingly lower 1.5/$ earning rate. But if your goal is to pursue a pure or mostly cashback strategy, then there are definitely better alternatives than the CFU.

Re: Do I need CFU anymore?

Anonymous — Mon, 10 Jun 2019 01:18:58 GMT

Its a great general spending card if you have an airline reward program. Nothing wrong with keeping it.

Re: Do I need CFU anymore?

simplynoir — Mon, 10 Jun 2019 01:20:25 GMT

I would just transfer as much as the credit line I could to the CSP but keep the CFU open if it's one of the oldest cards in your lineup. But if you don't want to deal with that card any longer then closing should be perfectly fine as well. I'm just of the opinion if it costs nothing to keep it open why close it and perhaps let Chase do it for you down the line. A minority perhaps in that line of thinking.

Re: Do I need CFU anymore?

kshurika — Mon, 10 Jun 2019 01:26:30 GMT

Hah-hah! A few minutes later and the scales have fallen from my eyes! Despite the fact that I'm a numbers guy, I lost sight of the fact that the difference between $0.01 and 1 1/2 cents is 50%! Good idea to transfer a good portion of the CFU line to CSP. Then, I'll hang onto CFU.

Gracias, amigos!

Re: Do I need CFU anymore?

Anonymous — Mon, 10 Jun 2019 01:32:09 GMT

When in doubt "park" a Chase card by shuffling the limits and then throw it in the drawer for safe keeping if you ever decide to PC to something else you don't have to worry about 5/24 because it's still sitting there. Just put something on it once a year and you're good.

Re: Do I need CFU anymore?

kshurika — Mon, 10 Jun 2019 04:34:09 GMT

ANOTHER bit of good advice! Glad I posted this.

Re: Do I need CFU anymore?

NRB525 — Mon, 10 Jun 2019 04:40:47 GMT

What do you use the CSP for? The AF on that card doesn’t really get you any perks. It is transferrable points but if that were the use, the CFU might be recognized.

Have you considered PC the CFU to a regular Freedom? Sounds like the rotating categories may get it some better use, vs Discover.

Re: Do I need CFU anymore?

coreysw12 — Mon, 10 Jun 2019 05:11:37 GMT

@NRB525 wrote:
What do you use the CSP for? The AF on that card doesn’t really get you any perks. It is transferrable points but if that were the use, the CFU might be recognized.

Have you considered PC the CFU to a regular Freedom? Sounds like the rotating categories may get it some better use, vs Discover.

Ultimate Reward points are worth 1c/point, but if you have a CSP then they are worth 1.25c/point. And you can transfer points between cards. So that's that primary benefit of the CSP, plus the extra 0.5% on travel and dining purchases that the CFU doesn't offer. That makes it worth the $95 AF for most people, unless you really don't travel or eat out much (in which case, why would you have the CSP in the first place, since it's designed to be a dining/travel card)

Re: Do I need CFU anymore?

wasCB14 — Mon, 10 Jun 2019 13:00:24 GMT

If you're putting an appreciable amount of spend on CSP, it may be worth upgrading to CSR.

Re: Do I need CFU anymore?

coreysw12 — Mon, 10 Jun 2019 17:10:49 GMT

@wasCB14 wrote:
If you're putting an appreciable amount of spend on CSP, it may be worth upgrading to CSR.

For sure, that's my plan after my CSP celebrates its 1-year anniversary