topic Re: Your Advice: Best Credit Card in Credit Cards

Your Advice: Best Credit Card

credit8502020 — Thu, 13 Aug 2020 16:18:01 GMT

Hi All,

First, let me say thank you for all the information that has been shared on this forum!

I'm working to help my Mother get the absolute best cash back credit card(s). Although, I defintely want to help her get one, I'm curious as to advice regarding applying for 2 ideal credit cards considering she only has one inquiry and also only has store cards at this point.

Ideally, I think it would be best for her to have an excellent cash back card. I have considered the following, but would like your help with any helpful data points as to the best card(s) to apply for and when. If there are other cards, that you would suggest, please chime in.

-Chase Unlimited (Because of the cashback and not Chase Freedom because of needing to switch categories)
-NFCU Credit Card - Cash Rewards, but open to feedback about other NFCU cards (My Mother will be opening an account with NFCU today. Although I think it would be great to get a card from NFCU, how long should we wait before she applies for a credit card?)

-AOD Visa Signature 3% Credit Card - It appears that this credit union does a Eq 5 HP for membership, so was thinking to apply for the credit card during the application process as well.

-US Bank Cash Plus Credit Card

-Blue Cash Everyday Card from American Express - Was told that American Express has been denying consumers, even with high credit scores lately.

***Monthly Spend***

About $785 (including some utilities that can be paid using a credit card)

Also, she'll have some larger items that she can purchase soon for any ideal signup bonuses.

FICO 8 Scores:

761 - EQ
759 - TU
753 - EXP

1 Inquiry on TU (8/2019)

Negatives are from me on our joint accounts:

Navient - 6 Lates (2014)

Discover - 3 Lates (2018) - Closed, but with a $3100 balance I'm paying off (Had a $10,000 CL)

Thank you in advance for your feedback!

Re: Your Advice: Best Credit Card

dragontears — Wed, 12 Aug 2020 19:44:53 GMT

The best card would be one that matches your mother's spend which you don't specify what that is.....

I am curious as to why you have so many general spend cards on your list. Are you thinking about getting several of them or just debating which general spend card to get?

Re: Your Advice: Best Credit Card

blindambition — Wed, 12 Aug 2020 22:04:11 GMT

Where is your mothers spend? That's a key data point. Unless she just wants a general card to cover all.

AOD requires you to be a member of specific societies, or associations to qualify. Read the AOD post for more info. This CU is DTI, and now account sensitive.

US Bank CP is a good card, but like Freedom, it requires choosing categories. This would be first card to apply for if you decide. US Bank is INQ and new account sensitive. They like 1 new account in 12 months to approve.

They are all good cards really. Her spending habits will be the decider. Some choices of lenders are more conservative than others.

Re: Your Advice: Best Credit Card

Anonymous — Wed, 12 Aug 2020 21:14:33 GMT

@blindambition wrote:

They are all good cards really. Her spending habits will be the decider. Some choices of lenders are more conservative than others.

Yes..., but CFU really isn't a great choice for straight cashback, unless you get an outsize SUB. There are enough 2% (and 3%) cards so that 1.5% isn't that appealing.

Re: Your Advice: Best Credit Card

Aim_High — Wed, 12 Aug 2020 21:28:44 GMT

Welcome to My Fico Forums @credit8502020

Agreed that much more description of spending priorities would be helpful.

It's odd that you eliminate the Chase Freedom card due to rotating categories but then include the US Bank Cash plus which is a rotating category card! The rotating category cards (Discover It, Chase Freedom, US Bank Cash Plus, Amalgamated Bank of Chicago Mastercard) can give high 5% yield but are limited by category and spending caps so not ideal for everyone. And they only earn 1% off-category, a lackluster return, except that Cash + allows one 2% category also.

You also mention the AOD FCU Signature Visa which is a great flat-rate 3% card. However, getting accounts approved and set up for many of us out of the geographic fence was cumbersome and some would not tolerate it just to get a card. Like most credit unions, you have to be a approved as a member to get this card.

I noticed you did *NOT* mention some other good flat-rate 2% cards. There are many and they might be a better overall fit for your mom, especially if she wants to simplify choosing cards at point-of-purchase. Top contenders in the 2% category are the PenFed Power Cash Rewards, Synchrony Bank PayPal Mastercard, Citibank Double Cash, and the State Department FCU Premium Cash Back Plus. There are actually quite a few others also but those are some of the more popular. Getting at least 2% instead of 1.5% (with cards such as NFCU Cash Rewards, Chase Freedom Unlimited, Wells Fargo Cash Wise, AMEX Cash Magnet, or Capital One Quicksilver for examples) adds up over time.

Blue Cash Everyday is not a bad card, but the 3% is capped at $6K grocery spend which is less than many people spend on groceries. (That's only $115 per week.) And the 2% is only on gas and selected department stores. Everything else is only 1%, so depending on spending, a flat-rate 1.5% or 2% card might come out ahead and be more simple to manage.

The FICO Score 8's you post are good, but the negatives may hurt approvals somewhat, even though they are not recent. Lenders are a little more picky today with the economic downturn.

Re: Your Advice: Best Credit Card

M_Smart007 — Wed, 12 Aug 2020 21:56:13 GMT

"It's odd that you eliminate the Chase Freedom card due to rotating categories but then include the US Bank Cash plus which is a rotating category card!"

I wonder if US Bank Cash+ is really defined as a rotating category card, since you can pick the same quarters all year round?

Re: Your Advice: Best Credit Card

blindambition — Wed, 12 Aug 2020 22:09:28 GMT

@Anonymous wrote:
@blindambition wrote:

They are all good cards really. Her spending habits will be the decider. Some choices of lenders are more conservative than others.
Yes..., but CFU really isn't a great choice for straight cashback, unless you get an outsize SUB. There are enough 2% (and 3%) cards so that 1.5% isn't that appealing.

I don't disagree with that point. However, we have someone who before was only using store cards.

I wasn't going to make a recommendation until OP clarified spending and category needs.

Re: Your Advice: Best Credit Card

NRB525 — Wed, 12 Aug 2020 22:52:34 GMT

@M_Smart007 wrote:
"It's odd that you eliminate the Chase Freedom card due to rotating categories but then include the US Bank Cash plus which is a rotating category card!"

I wonder if US Bank Cash+ is really defined as a rotating category card, since you can pick the same quarters all year round?

Same principal, you have to activate the categories each quarter.

Technically, it's more challenging to do that with Cash+, as you have to go through more steps. It can be better for some specific spend, but doesn't really help general spend. Chase Freedom is a single click on a standard page to activate.

I would suggest mom get a good NFCU cash back card and call it a year. After getting used to using that card, and she might make the decision to add more cards ( read: take on more card management time ) then she might look for another lender. But unless she gets the MyFICO bug, I have my doubts she would really go for multiple cards to eke out a few more pennies.

Re: Your Advice: Best Credit Card

M_Smart007 — Wed, 12 Aug 2020 23:17:33 GMT

@NRB525 wrote:
@M_Smart007 wrote:
"It's odd that you eliminate the Chase Freedom card due to rotating categories but then include the US Bank Cash plus which is a rotating category card!"

I wonder if US Bank Cash+ is really defined as a rotating category card, since you can pick the same quarters all year round?
Same principal, you have to activate the categories each quarter.
Technically, it's more challenging to do that with Cash+, as you have to go through more steps. It can be better for some specific spend, but doesn't really help general spend. Chase Freedom is a single click on a standard page to activate.

I would suggest mom get a good NFCU cash back card and call it a year. After getting used to using that card, and she might make the decision to add more cards ( read: take on more card management time ) then she might look for another lender. But unless she gets the MyFICO bug, I have my doubts she would really go for multiple cards to eke out a few more pennies.

@NRB525, Pulling @Aim_High's leg just a little

Re: Your Advice: Best Credit Card

randomguy1 — Wed, 12 Aug 2020 23:55:12 GMT

@Anonymous wrote:
@blindambition wrote:

They are all good cards really. Her spending habits will be the decider. Some choices of lenders are more conservative than others.
Yes..., but CFU really isn't a great choice for straight cashback, unless you get an outsize SUB. There are enough 2% (and 3%) cards so that 1.5% isn't that appealing.

Unless that person has a low spend or low income. The CFU with its $200 bonus is better than most 2% card until a very significant amount of spend is met. Plus you get that money up front.

Re: Your Advice: Best Credit Card

Aim_High — Thu, 13 Aug 2020 01:05:41 GMT

@M_Smart007 wrote:
@NRB525 wrote:
@M_Smart007 wrote:
"It's odd that you eliminate the Chase Freedom card due to rotating categories but then include the US Bank Cash plus which is a rotating category card!"

I wonder if US Bank Cash+ is really defined as a rotating category card, since you can pick the same quarters all year round?
Same principal, you have to activate the categories each quarter.
Technically, it's more challenging to do that with Cash+, as you have to go through more steps. It can be better for some specific spend, but doesn't really help general spend. Chase Freedom is a single click on a standard page to activate.
@NRB525, Pulling @Aim_High's leg just a little

Lol ... well, I do see what you mean @M_Smart007! But yes, it's categories and yes, you have to activate them. I always supposed that USBank could change them at their whim, even though they apparently do not!??

I'll consider my leg pulled

Re: Your Advice: Best Credit Card

credit8502020 — Thu, 13 Aug 2020 01:39:50 GMT

@dragontears wrote:
The best card would be one that matches your mother's spend which you don't specify what that is.....

I am curious as to why you have so many general spend cards on your list. Are you thinking about getting several of them or just debating which general spend card to get?

Thank you! I updated my original post. Her monthly spend is about $785, which includes utilities that can be paid via credit card. Thinking of getting maybe 2 initially. Are you asking why so many general cards vs travel specific cards, etc.? The reason I've considered those cards are because of their cash back percentages.

Re: Your Advice: Best Credit Card

credit8502020 — Thu, 13 Aug 2020 01:43:50 GMT

@blindambition wrote:
Where is your mothers spend? That's a key data point. Unless she just wants a general card to cover all.
AOD requires you to be a member of specific societies, or associations to qualify. Read the AOD post for more info. This CU is DTI, and now account sensitive.
US Bank CP is a good card, but like Freedom, it requires choosing categories. This would be first card to apply for if you decide. US Bank is INQ and new account sensitive. They like 1 new account in 12 months to approve.
They are all good cards really. Her spending habits will be the decider. Some choices of lenders are more conservative than others.

Thank you! I updated my original post. My Mother's monthly spend is about $785, which includes utilities that can be paid via credit card. Yes; I've been looking into AOD and read posts about it. I'm going to look closely into her DTI. Do you know of another credit card that offers 3% cash back? If she gets US Bank 1st, how long after getting that card would you suggest applying for the Chase card?

Re: Your Advice: Best Credit Card

Anonymous — Thu, 13 Aug 2020 13:41:16 GMT

@Aim_High wrote:
Lol ... well, I do see what you mean @M_Smart007! But yes, it's categories and yes, you have to activate them. I always supposed that USBank could change them at their whim, even though they apparently do not!??

I'll consider my leg pulled

Well,, FWIW, I generally don't consider Cash+ as rotating, but in the context of the OP maybe. To me, it depends on what is meant by the issue of "switching categories" Yes, in all cases you need to sign up every quarter, but what distinguishes the "choose" cards like Cash+ from the others is that you are somewhat less at the whim of the issuer: (e.g. for those that don't do Wholefoods or amazon, Freedom is useless this quarter). Yes, Cash+ categories come and go, but changes are rare, and there are always lots of choices, compared to Freedom/Discover take-it-or-leave-it

Re: Your Advice: Best Credit Card

randomguy1 — Thu, 13 Aug 2020 14:49:43 GMT

@credit8502020 wrote:
@blindambition wrote:
Where is your mothers spend? That's a key data point. Unless she just wants a general card to cover all.
AOD requires you to be a member of specific societies, or associations to qualify. Read the AOD post for more info. This CU is DTI, and now account sensitive.
US Bank CP is a good card, but like Freedom, it requires choosing categories. This would be first card to apply for if you decide. US Bank is INQ and new account sensitive. They like 1 new account in 12 months to approve.
They are all good cards really. Her spending habits will be the decider. Some choices of lenders are more conservative than others.
Thank you! I updated my original post. My Mother's monthly spend is about $785, which includes utilities that can be paid via credit card. Yes; I've been looking into AOD and read posts about it. I'm going to look closely into her DTI. Do you know of another credit card that offers 3% cash back? If she gets US Bank 1st, how long after getting that card would you suggest applying for the Chase card?

At 785 monthly spend it will take 6+ years in my estimation for a 2% card with no bonuses to beat a CFU @1.5 with a $20 bonus.

Re: Your Advice: Best Credit Card

Harvey26 — Thu, 13 Aug 2020 16:19:11 GMT

@credit8502020 wrote:
Hi All,

First, let me say thank you for all the information that has been shared on this forum!

I'm working to help my Mother get the absolute best cash back credit card(s). Although, I defintely want to help her get one, I'm curious as to advice regarding applying for 2 ideal credit cards considering she only has one inquiry and also only has store cards at this point.

Ideally, I think it would be best for her to have an excellent cash back card. I have considered the following, but would like your help with any helpful data points as to the best card(s) to apply for and when. If there are other cards, that you would suggest, please chime in.

-Chase Unlimited (Because of the cashback and not Chase Freedom because of needing to switch categories)
-NFCU Credit Card - Cash Rewards, but open to feedback about other NFCU cards (My Mother will be opening an account with NFCU today. Although I think it would be great to get a card from NFCU, how long should we wait before she applies for a credit card?)
-AOD Visa Signature 3% Credit Card - It appears that this credit union does a Eq 5 HP for membership, so was thinking to apply for the credit card during the application process as well.
-US Bank Cash Plus Credit Card
-Blue Cash Everyday Card from American Express - Was told that American Express has been denying consumers, even with high credit scores lately.

***Monthly Spend***
About $785 (including some utilities that can be paid using a credit card)

FICO 8 Scores:
761 - EQ
759 - TU
753 - EXP

1 Inquiry on TU (8/2019)

Negatives are from me on our joint accounts:
Navient - 6 Lates (2014)
Discover - 3 Lates (2018) - Closed, but with a $3100 balance I'm paying off (Had a $10,000 CL)

Thank you in advance for your feedback!

What about is Citi Double Cash? I would try to goodwill the Navient and Discover lates. It never hurts to try. I would also try to prequal for Amex and see what comes up. The discover lates might pose an issue. What current cards does your mom have ? I would be willing to bet she would have 800 + scores if it werent for the lates. NFCU is also a great choice as far as great SL and decent APR and they have they have 150 sign up bonus and 1.5 cash back

Re: Your Advice: Best Credit Card

credit8502020 — Thu, 13 Aug 2020 16:19:26 GMT

@Anonymous wrote:
@blindambition wrote:

They are all good cards really. Her spending habits will be the decider. Some choices of lenders are more conservative than others.
Yes..., but CFU really isn't a great choice for straight cashback, unless you get an outsize SUB. There are enough 2% (and 3%) cards so that 1.5% isn't that appealing.

Thank you for your feedback! What are you top picks for 2% cards? Also, can you share other 3% cards you've found? I only know of AOD.

Re: Your Advice: Best Credit Card

K-in-Boston — Thu, 13 Aug 2020 16:41:26 GMT

If you choose utilities as a 5% category, the Cash+ could be a good option, but I would go for it first as US Bank is quite new account sensitive.

Who is the primary on the Discover? You mentioned it was a joint account, but Bank of America and Wells Fargo are the only two major lenders to allow joint owners on bank cards. If you are the primary, removing her as an authorized user would likely eliminate those lates from reporting on her credit reports.

Re: Your Advice: Best Credit Card

credit8502020 — Thu, 13 Aug 2020 17:27:40 GMT

@Aim_High wrote:
Welcome to My Fico Forums @credit8502020

Agreed that much more description of spending priorities would be helpful.

It's odd that you eliminate the Chase Freedom card due to rotating categories but then include the US Bank Cash plus which is a rotating category card!   The rotating category cards (Discover It, Chase Freedom, US Bank Cash Plus, Amalgamated Bank of Chicago Mastercard) can give high 5% yield but are limited by category and spending caps so not ideal for everyone. And they only earn 1% off-category, a lackluster return, except that Cash + allows one 2% category also.

You also mention the AOD FCU Signature Visa which is a great flat-rate 3% card. However, getting accounts approved and set up for many of us out of the geographic fence was cumbersome and some would not tolerate it just to get a card.   Like most credit unions, you have to be a approved as a member to get this card.

I noticed you did *NOT* mention some other good flat-rate 2% cards. There are many and they might be a better overall fit for your mom, especially if she wants to simplify choosing cards at point-of-purchase. Top contenders in the 2% category are the PenFed Power Cash Rewards, Synchrony Bank PayPal Mastercard, Citibank Double Cash, and the State Department FCU Premium Cash Back Plus. There are actually quite a few others also but those are some of the more popular. Getting at least 2% instead of 1.5% (with cards such as NFCU Cash Rewards, Chase Freedom Unlimited, Wells Fargo Cash Wise, AMEX Cash Magnet, or Capital One Quicksilver for examples) adds up over time.

Blue Cash Everyday is not a bad card, but the 3% is capped at $6K grocery spend which is less than many people spend on groceries. (That's only $115 per week.) And the 2% is only on gas and selected department stores. Everything else is only 1%, so depending on spending, a flat-rate 1.5% or 2% card might come out ahead and be more simple to manage.

The FICO Score 8's you post are good, but the negatives may hurt approvals somewhat, even though they are not recent. Lenders are a little more picky today with the economic downturn.

Thank you for your feedback! It is really helpful in continuing to consider the best options. I included US Bank because of the utility and cell phone category. I think she would get more return from their categories than those with Chase. Thanks for mentioning the other cards. Out of that list, the State Department Federal & PenFed Credit Unions would be at the top of my list because I'm also helping her identify a new bank that has great rates and products, etc. After joining one of the credit unions, how long do you suggest waiting before applying?

I've looked into getting those negatives removed. However, based on advise I've received, I'm being careful to do so to avoid the possibility of them unintentionally removing the entire account.

Re: Your Advice: Best Credit Card

credit8502020 — Thu, 13 Aug 2020 17:39:59 GMT

@randomguy1 wrote:
@Anonymous wrote:
@blindambition wrote:

They are all good cards really. Her spending habits will be the decider. Some choices of lenders are more conservative than others.
Yes..., but CFU really isn't a great choice for straight cashback, unless you get an outsize SUB. There are enough 2% (and 3%) cards so that 1.5% isn't that appealing.
Unless that person has a low spend or low income. The CFU with its $200 bonus is better than most 2% card until a very significant amount of spend is met. Plus you get that money up front.

Thank you for your feedback! You make a good point as well. With those negatives, do you think it will be an issue getting CFU?