topic Re: Credit Card Usage in Credit Cards

Credit Card Usage

Laredo — Fri, 30 Sep 2022 13:59:56 GMT

I only have a handful of cards which all have cash back rewards in some form. I see many of you have a lot of cards and wonder how do you manage them to ensure the best benefit of what the cards offer and not leave any unused and have a chance of them being cancelled for lack of usage. I have a couple cards I have not used yet so wondering do you put a few charges on one and have a main card or two that is used heavily? May be a dumb question but wonder what you experts do.

Re: Credit Card Usage

M_Smart007 — Fri, 30 Sep 2022 15:34:03 GMT

I have a few cards ...try to maximise rewards, but have many that overlap.

Certain lenders are more prone to closing without activity.

As a rule of thumb, I keep most unused cards in a stack,

pull that stack out, start from top to bottom ..

put a few dollars charge on Amazon reloads, every six months. ( a very few ..I let go one year / but not advised)

Have them all set up for auto pay for minimum amount, as to not incur any late payments.

But I log in and pay all the charges in full manually as the creditors allow me, before statement due date.

Then I re-visit and double check them again, just to make sure they have zero balance.

A few that have rewards, I will use for Starbucks App reloads.

I have NOT had any lenders close cards, when using every six months.

I do not hold, Capital one, Barclays or Comenity. (or any sub-prime cards) So I cannot speak for them.

Re: Credit Card Usage

calisig — Fri, 30 Sep 2022 17:39:10 GMT

What works best for me to manage multiple cards is having a strategy. For me, that strategy is for every card to serve some sort of specific purpose, without many overlapping benefits. I don't just add cards to my setup randomly; which makes each card in my setup unique in some way for me. As I developed my strategy, I noticed my second oldest card didn't fit. I was about to close it, but fortunately I was able to PC it for a more useful specific purpose that fits my setup's strategy. It still doesn't get a lot of use, but when I need something that fits it's purpose, I use it without thinking about it. This strategy causes each card gets natural organic use without effort. Yes, some get more use than others, but every card gets natural use regularly. I don't have much use for my oldest card, but since it is 11 years older than my next oldest cards, it's use is age, so I have it set for some small monthly charges to keep it active automatically. So if you don't already have a strategy, I suggest you develop a strategy, PC existing cards that don't fit your strategy if you can, persue cards that fit your strategy, and then close cards that don't fit your strategy (unless one of those is your oldest card and is significantly older then the rest - then maybe keep that one). Good luck and have fun

Re: Credit Card Usage

Hoben02 — Fri, 30 Sep 2022 16:03:46 GMT

I use the CardPointers app to identify which card to use in which category. I use the awardwallet app to keep track of card usage, but this app is geared towards travel credit cards becuz I don't see my crypto in here. If the cards have some store program like your kohls card you could track that way

Re: Credit Card Usage

SouthJamaica — Fri, 30 Sep 2022 16:22:06 GMT

@Laredo wrote:
I only have a handful of cards which all have cash back rewards in some form. I see many of you have a lot of cards and wonder how do you manage them to ensure the best benefit of what the cards offer and not leave any unused and have a chance of them being cancelled for lack of usage. I have a couple cards I have not used yet so wondering do you put a few charges on one and have a main card or two that is used heavily? May be a dumb question but wonder what you experts do.

1. I'm not an expert, and don't try to maximize my cash rewards. But I might qualify as someone with "a lot of cards".

2. I simply have 6 or 7 decent cash back cards and rotate them throughout the month to keep them all in use.

3. Once in a while the thought occurs to me that one particular card would produce higher rewards than another in a particular category, and if it's the right time in the month I'll opt to use that one.

4. I'm sure I'm leaving a lot of pennies on the table. But I'm saving brain cells for future use on better projects

Re: Credit Card Usage

Laredo — Fri, 30 Sep 2022 16:54:36 GMT

All good information. I appreciate the feedback. I need to come up with a plan as many have said.

Re: Credit Card Usage

Suzette2 — Sat, 01 Oct 2022 14:36:44 GMT

@M_Smart007 wrote:

I have a few cards ...try to maximise rewards, but have many that overlap.
Certain lenders are more prone to closing without activity.
As a rule of thumb, I keep most unused cards in a stack,
pull that stack out, start from top to bottom ..
put a few dollars charge on Amazon reloads, every six months. ( a very few ..I let go one year / but not advised)

Have them all set up for auto pay for minimum amount, as to not incur any late payments.
But I log in and pay all the charges in full manually as the creditors allow me, before statement due date.
Then I re-visit and double check them again, just to make sure they have zero balance.
A few that have rewards, I will use for Starbucks App reloads.

I have NOT had any lenders close cards, when using every six months.

I do not hold, Capital one, Barclays or Comenity. (or any sub-prime cards) So I cannot speak for them.

This is a good idea

Re: Credit Card Usage

MrT_521 — Sat, 01 Oct 2022 21:43:33 GMT

I'll throw in another angle here: churning.

We, P2 (wife) and I, churn. This is opening cards for the sign up bonus. When the required spend is reached, we open a new card and spend towards another sign up bonus.

There are certainly some disadvantages to doing this, as well as advantages. The primary advantage is an increased reward. Most SUBs return at least 10%, and as high as 40%. This is not counting the regular reward spend.

Churning is also simpler if you have a P2 who is not into it. I get an AU card for my wife (or get an AU card for myself if the new card is hers), give it to her, and say "Here dear, use this card for everything until I give you another one."

Churning is definitely work though. You constantly need to balance things like 5/24 and making sure you reach the required spend in the allotted time. You also get many hard pulls. That said, HPs don't matter as much as many here seem to think. I just got a Citi Premier while at 5/6 for hard pulls. Citi is very HP sensitive. Chase and Amex don't care.

Re: Credit Card Usage

Anonymous — Sat, 01 Oct 2022 22:00:43 GMT

I use all 9 of my cards. If I had to think of putting a pack of gum charge on a card, I would close it.

Re: Credit Card Usage

TheRedHat — Mon, 03 Oct 2022 07:36:20 GMT

I don't consider myself an expert, but the general principle I use is that one card is my "everything else" card at 2% cashback and then all the other cards get used for categories where the cashback is higher. There are actually two cards that I'm closing out (one possibly within a month or so, and the other once it hits two years of age). They are both 1.5% cashback cards that I don't want/need. I don't sock drawer cards either. If it's not being used; it goes.

Re: Credit Card Usage

Gollum — Mon, 03 Oct 2022 07:57:11 GMT

@Laredo wrote:
I only have a handful of cards which all have cash back rewards in some form. I see many of you have a lot of cards and wonder how do you manage them to ensure the best benefit of what the cards offer and not leave any unused and have a chance of them being cancelled for lack of usage. I have a couple cards I have not used yet so wondering do you put a few charges on one and have a main card or two that is used heavily? May be a dumb question but wonder what you experts do.

Some people who post to this forum have dozens of credit cards. Those people are not necessarily "experts" regarding credit cards.

Re: Credit Card Usage

MySunrise271 — Mon, 03 Oct 2022 13:20:57 GMT

@Laredo wrote:
I only have a handful of cards which all have cash back rewards in some form. I see many of you have a lot of cards and wonder how do you manage them to ensure the best benefit of what the cards offer and not leave any unused and have a chance of them being cancelled for lack of usage. I have a couple cards I have not used yet so wondering do you put a few charges on one and have a main card or two that is used heavily? May be a dumb question but wonder what you experts do.

Another 'non expert' chiming in🙂 I use my cards as they fit into my spending needs. I've learned in the last few years that it's best for my lifestyle to only apply for cards that I need. For now, I do use one 2% card for purchases that don't fit higher category reward spend with other cards. However, I tend to cap my 'active day to day cards' to 4 or less (for Q4 -Amex BCP, Chase FF, CITI Costco, Fidelity Rewards). 3 cards have 0% promotion balances with no additional spend (Lowes, CITI DC, Discover). 1 card (Elan MCP) has monthly utilities/internet billing with no additional spend. 2 cards have monthly subscription premiums (Amex EDP, FNBO). Other cards sit dormant until a need arises to rotate them in but I don't stress about not using them.

Re: Credit Card Usage

Jeffster1 — Mon, 03 Oct 2022 14:02:45 GMT

I'm definitely no expert, but I make a point of rotating cards based on reward categories and due dates. I practice AZEO and always keep a balance on one card. Previously, it was my Merrick card (which I am closing this week). Now, it's my Cap One Walmart card. My go-to card is my BoA CCR. I keep a few cards in my card wallet, and rotate them once a month between my wallet and my strongbox.

I also do my best to keep an eye on less useful cards, and have closed a number in the past two months, and will be closing 2 this week, Merrick and Upgrade (still deciding on Upgrade).

I combined my two TD cards into one when I got one with better rewards and would have otherwise closed my Cap One Walmart (since Cap One doesn't combine) if not for the fact that I use it for AZEO. If I decide to use my Cap One QS for AZEO, the Walmart will go.

I use them based on the due dates in order to ensure AZEO.

My current line-up is pretty manageable for me. I do keep an eye on Rewards which is somewhat easier for me as I have my BoA CCR and am Platinum Honors Rewards, and get the bonus as a result.