topic Feedback on current setup / next steps in Credit Cards

Feedback on current setup / next steps

Anonymous — Fri, 31 Jan 2020 20:50:16 GMT

Hey folks,

Been working on building out a solid cash back portfolio, and would love your feedback / advice on next steps, cards to consider, etc.

Thinking now would probably be a good time to start gardening for a bit (easier said than done), but let me know what you think!

For reference, my FICO scores range from 777 to 815 depending on where I check.

CURRENT CARDS

Opened 2010–2017

Citi Double Cash ($23k CL)

PC’d from some other Citi card years ago, would PC again if it makes sense
Sock drawer

C1 Quicksilver ($31k CL)

Sock drawer

C1 Savor ($25k CL)

Use heavily for 4% dining
Grandfathered into no AF

Opened in 2019

Discover It ($7k CL)

Use regularly for 5% categories (10% for year 1)

Chase Freedom ($10k CL)

Use regularly for 5% categories and 5% Lyft promo

Amex BCP ($30k CL)

Use regularly for 6% groceries and streaming services

Chase Freedom Unlimited ($17k CL)

Only using to pay off large purchase at 0% APR

Apple Card ($15k CL)

Use regularly for 3% Apple

Alliant Visa Signature ($15k CL)

Use heavily for 3% non-category spend (2.5% after year 1 )

Opened in 2020

WF Propel ($6k CL)

Plan to use for 3% travel, transit, and gas
Going to try SL recon
Might get WF Visa Signature later for 50% bonus on airfare

FUTURE CONSIDERATIONS

Cash back

US Bank Cash+

Could use some of the 5% categories
Want to start relationship with USB since their other products aren’t offered here

BoA Cash Rewards

Interested in 3% online shopping
Declined in 2019 for too many inquiries / new accounts

If I start traveling a little more

WF Visa Signature

Could pool points from Propel and get 50% bonus on airfare

US Bank Altitude Reserve

Interested in 3x travel and mobile wallet purchases, plus $325 annual travel credit

PenFed Pathfinder Rewards

Don’t know much about it, but heard it’s a solid no AF travel card and that the upcoming changes are good

Re: Feedback on current setup / next steps

AllZero — Fri, 31 Jan 2020 20:57:15 GMT

Sounds like a solid plan. If you haven't done so, maybe open up a checking/savings account with BoA, US Bank to be on their radar?

Re: Feedback on current setup / next steps

Nomad3 — Fri, 31 Jan 2020 21:00:41 GMT

You could also grab the CSP/CSR to trifecta the returns on Chase UR.

The setup you looks nice tho. WF is not known for recon on SL. My attempt got me a letter telling me they want to get to know me before they open the coffers

Re: Feedback on current setup / next steps

M_Smart007 — Fri, 31 Jan 2020 21:16:16 GMT

US Bank Altitude Reserve

Interested in 3x travel and mobile wallet purchases, plus $325 annual travel credit

May want to open a US Bank account to start a relationship, and not have much (or any) new app activity before applying.

Re: Feedback on current setup / next steps

Anonymous — Fri, 31 Jan 2020 21:20:25 GMT

Agreed with AllZero. Sounds like a solid plan. I guess I’ll state the obvious and suggest get a cashback card most beneficial to you regarding your spend pattern.

Re: Feedback on current setup / next steps

kerplunk — Sat, 01 Feb 2020 02:20:07 GMT

I would look at it from the standpoint of what you actually need. Are there any categories of your spend that aren't covered yet? Utilities?

Re: Feedback on current setup / next steps

SouthJamaica — Sat, 01 Feb 2020 03:12:43 GMT

@Anonymous wrote:
Hey folks,

Been working on building out a solid cash back portfolio, and would love your feedback / advice on next steps, cards to consider, etc.

Thinking now would probably be a good time to start gardening for a bit (easier said than done), but let me know what you think!

For reference, my FICO scores range from 777 to 815 depending on where I check.
CURRENT CARDS

Opened 2010–2017

Citi Double Cash ($23k CL)
PC’d from some other Citi card years ago, would PC again if it makes sense
Sock drawer
C1 Quicksilver ($31k CL)
Sock drawer
C1 Savor ($25k CL)
Use heavily for 4% dining
Grandfathered into no AF

Opened in 2019

Discover It ($7k CL)
Use regularly for 5% categories (10% for year 1)
Chase Freedom ($10k CL)
Use regularly for 5% categories and 5% Lyft promo
Amex BCP ($30k CL)
Use regularly for 6% groceries and streaming services
Chase Freedom Unlimited ($17k CL)
Only using to pay off large purchase at 0% APR
Apple Card ($15k CL)
Use regularly for 3% Apple
Alliant Visa Signature ($15k CL)
Use heavily for 3% non-category spend (2.5% after year 1 )

Opened in 2020

WF Propel ($6k CL)
Plan to use for 3% travel, transit, and gas
Going to try SL recon
Might get WF Visa Signature later for 50% bonus on airfare
FUTURE CONSIDERATIONS

Cash back

US Bank Cash+
Could use some of the 5% categories
Want to start relationship with USB since their other products aren’t offered here
BoA Cash Rewards
Interested in 3% online shopping
Declined in 2019 for too many inquiries / new accounts
If I start traveling a little more

WF Visa Signature
Could pool points from Propel and get 50% bonus on airfare
US Bank Altitude Reserve
Interested in 3x travel and mobile wallet purchases, plus $325 annual travel credit
PenFed Pathfinder Rewards
Don’t know much about it, but heard it’s a solid no AF travel card and that the upcoming changes are good

It seems to me you already have a solid cash back portfolio, and would be better off not adding anything. If I were going to add something, it would be something different -- a travel card, or a no-fee low interest card.

Re: Feedback on current setup / next steps

Anonymous — Tue, 04 Feb 2020 00:32:09 GMT

@Nomad3 wrote:
WF is not known for recon on SL. My attempt got me a letter telling me they want to get to know me before they open the coffers

Welp, I just got the same response.

Called in after getting my card and figured, what the hey, I'll ask for $15k since the $6k they originally gave me is my lowest limit to date.

First rep tried submitting the request and then said he'll need to transfer me to credit services. From there, the CS rep asked why I wanted $15k so I told him the SLs for almost all my other cards have been $10–20k. After a few minutes, he came back and said they'd like to see 12 months' worth of card use before considering a CLI since this is the start of my relationship with them.

Oh well, at least I tried.

Re: Feedback on current setup / next steps

Taurus22 — Tue, 04 Feb 2020 23:40:45 GMT

@small-giraffe

Just a thought.....wouldn't the BoA Cash Rewards be redundant since you have the Alliant? Sure, you lose 0.5% after the first year, but it would keep a redundant card out of your wallet and/or SD, and save a HP for something more useful....

Highly recommend the US Bank Cash + (Utilities/Internet/Cell Phone @ 5% is high monthly spend)

Since you seem to like the rotaters like me, I would also recommend the ABoC Platinum or UnionStrong cards. Has 5% categories that convert at 3.75% (which is better than 3%) Plays well with Discover, Freedom, etc.

Re: Feedback on current setup / next steps

Aim_High — Wed, 05 Feb 2020 20:59:40 GMT

@Anonymous wrote:
Been working on building out a solid cash back portfolio, and would love your feedback / advice on next steps, cards to consider, etc.
Thinking now would probably be a good time to start gardening for a bit (easier said than done), but let me know what you think!

Generally looks like a well-thought-out and diversified plan. Looks like you really like to play the different point systems which brings me to my major point ...

Alliant Visa Signature ($15k CL)

Use heavily for 3% non-category spend (2.5% after year 1 )

Year one with this card is a winner with 3% and no-AF. Not necessarily over time, which I assume is your plan.

Alliant want to be your daily driver for this card and they prove it by charging you a $99 AF starting in year 2 for a cash-back card. Yes, it earns higher than a simple 2% card like your sock-drawered Citi DC, but only a half percent. If you do the math, to break even with the Alliant card at 2.5% with a $99 AF, you'd have to spend $19,800 a year to exceed what you're making with a no-AF 2% card like DC. So for any monthly uncategorized spend under $1,650 as a bare minimum, you're actually losing money to carry it. And if you are diversifying your spend among multiple cards to maximize cash-back, reaching this spend level month-after-month might be unsustainable. Definitely something to consider as you continue to add cards to your lineup. Sometimes less is more.

Re: Feedback on current setup / next steps

Anonymous — Wed, 05 Feb 2020 22:05:37 GMT

How much do you spend on groceries?

You'd need to spend more than $3,167 per year ($95 AF divided by 3% rewards difference) on groceries to do better with BCP over BCE.

***********

Echo what Aim High said on Alliant. No bueno with an AF.

With Citi Double Cash, Discover, WF Propel and BCP (if it makes sense) or BCE, you have a great 3%+ simple cash back set up that covers most spending categories and gets you 2% on noncategory.

If you want to increase your overall Return on Spend (ROS) from 2-3% to 5-8%, it's going to get a lot more complicated. You are going to have to do your research and

1) optimize specific categories (such as 5% on utility spend with US Bank Cash+ and 5% on gas with Ducks Unlimited)

2) start earning points in addition to simple cash back

3) learn about transfer partners (that make sense for your location) where you can maximize point values

4) start earning SUBs

If you don't have time for all that, stick with the simple plan and be happy with the 2-3% ROS.

Re: Feedback on current setup / next steps

Aim_High — Thu, 06 Feb 2020 00:13:46 GMT

@Anonymous wrote:
Echo what Aim High said on Alliant. No bueno with an AF ...

If you want to increase your overall Return on Spend (ROS) from 2-3% to 5-8%, it's going to get a lot more complicated.
You are going to have to do your research and

1) optimize specific categories (such as 5% on utility spend with US Bank Cash+ and 5% on gas with Ducks Unlimited)
2) start earning points in addition to simple cash back
3) learn about transfer partners (that make sense for your location) where you can maximize point values
4) start earning SUBs

If you don't have time for all that, stick with the simple plan and be happy with the 2-3% ROS.

+1 Getting the highest returns takes a lot of work.

And optimizing across-the-board adds a lot of complexity for a diminishing reward value.

At some point, what is the cost of managing multiple cards and payments?

And when it gets to points, finding places you'd be spending money anyway is important. If you're buying hotel rooms or flights or cabin-class upgrades that you wouldn't be buying otherwise, you might be better off with a more simple strategy. Plus, with points, if you're in more than one system, you may find your spend won't support reasonable redemptions among them all. Sure, you might be able to get 5-8% with points, but those calculations take much more work and YMMV. And of course, more to manage in terms of watching for point devaluations or AF increases that change valuation. Cash is cash.

With a rock-bottom minimum of 2% and overall 2-3% counting a few higher-paying categories, you're actually doing reasonably well while keeping things simple.

Re: Feedback on current setup / next steps

Anonymous — Sun, 09 Feb 2020 22:24:41 GMT

Alliant card 3% earn rate being phased out/capped @10k/month for 2.5% so probably be better off w/ Disco ITMiles for 3% first year with no caps. Miles are 1cpp and can be redeemed into bank account starting @ .01