topic Re: Should We Get Another Card? in Credit Cards

Should We Get Another Card?

Anonymous — Sat, 05 Apr 2008 14:46:50 GMT

Should our household get another card? And if so, what?

Here is what we currently have (we also have an auto installment):

BofA Accolades, $20K, since 3/08, wife AU
BofA Amex, $26K, since 3/05, Joint
BofA Visa Signature, $20K, since 11/06, Joint
BofA Gold Visa, $5K, since 11/07, wife AU
American Express Green, since 11/05, me AU

Combined utilization: under 1%

I guess the purpose of possibly gaining any other card would be to improve the credit mix and to diversify away from BofA a bit in case something were to go awry.

So what should we consider getting? Or should we not even bother?

Re: Should We Get Another Card?

haulingthescoreup — Sat, 05 Apr 2008 15:30:38 GMT

The only reason I can see getting another card is to reduce your exposure to BofA, as you mentioned.

Doesn't look like you carry balances, so I'd be looking for a no-fee rewards card, whether cash back or points. Is there an expense category or two where you're not getting much joy back from your current cards? (Gas, business supplies, etc.)

I'd think that you could get pretty much anything you want. Off the top of my head, I'm thinking Citi Professional Card (check the various rewards types), Chase Freedom (ditto), Discover More (they rotate their 5% cashback categories throughout the year.) If you do a rewards card, watch out for minimum amounts to spend before the good rewards kick in (AmEx Blue Cash is awful this way), high rewards that die almost immediately, after 3-6 months), limited flexibility in redeeming rewards, etc.

Since you already have American Express and Bank of America, I don't think that I'd fool with any other banks.

If you're interested in a CU card, I love the PenFed rewards plat Visa. 5% cash back on gas, 2% on groceries, 1.25% on everything else, credited every single month when the statement posts, offer seems to go on indefinitely.

Re: Should We Get Another Card?

Anonymous — Sat, 05 Apr 2008 16:05:19 GMT

IMO diversification of cc's in today's economy is more than amply justified.

Putting all your eggs in one basket isn't a good idea(save for the Amex green).

Re: Should We Get Another Card?

Anonymous — Sat, 05 Apr 2008 16:22:56 GMT

@Anonymous wrote:
IMO diversification of cc's in today's economy is more than amply justified.

Putting all your eggs in one basket isn't a good idea(save for the Amex green).

Sylvia,

Do you have any favorites for diversification?

Some of the usual suspects look pretty bad - Citi and Wamu are both distressed.

Re: Should We Get Another Card?

Anonymous — Sat, 05 Apr 2008 16:26:19 GMT

I would combine the B of A AMEX with the Gold Visa, and I would take a look at Citicards!

Re: Should We Get Another Card?

Anonymous — Sat, 05 Apr 2008 16:32:33 GMT

@Anonymous wrote:
I would combine the B of A AMEX with the Gold Visa, and I would take a look at Citicards!

Well consolidating doesn't help diversification at all, really. The Gold Visa is sock drawered, anyway.

And given Citicorp's distressed state, I'm lukewarm on Citi cards.

Message Edited by watchnerd on 04-05-2008 09:32 AM

Re: Should We Get Another Card?

Anonymous — Sat, 05 Apr 2008 16:42:16 GMT

@Anonymous wrote:

@Anonymous wrote:
IMO diversification of cc's in today's economy is more than amply justified.

Putting all your eggs in one basket isn't a good idea(save for the Amex green).

Sylvia,

Do you have any favorites for diversification?

Some of the usual suspects look pretty bad - Citi and Wamu are both distressed.

watchnerd, ALL banks are in distress. Except maybe Wells Fargo. It's the only one of the 5 major banks that still maintain Moody's and S&P's AAA rating:
http://www.marketwatch.com/news/story/wells-fargo-says-its-open/story.aspx?guid={C56A2C85-301A-4903-A03C-D838DD80B548}&siteid=yahoomy

Simmons Bank perhaps? How about Pulaski Bank? Chase seems to be weathering the storm ok....for now. Citi's credit card unit has been touted as one of the best in the world.

Hauling's suggestion of a Credit Union is a great alternative.

Re: Should We Get Another Card?

Anonymous — Sat, 05 Apr 2008 17:01:02 GMT

@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:
IMO diversification of cc's in today's economy is more than amply justified.

Putting all your eggs in one basket isn't a good idea(save for the Amex green).

Sylvia,

Do you have any favorites for diversification?

Some of the usual suspects look pretty bad - Citi and Wamu are both distressed.

watchnerd, ALL banks are in distress. Except maybe Wells Fargo. It's the only one of the 5 major banks that still maintain Moody's and S&P's AAA rating:
http://www.marketwatch.com/news/story/wells-fargo-says-its-open/story.aspx?guid={C56A2C85-301A-4903-A03C-D838DD80B548}&siteid=yahoomy

Simmons Bank perhaps? How about Pulaski Bank? Chase seems to be weathering the storm ok....for now. Citi's credit card unit has been touted as one of the best in the world.

Hauling's suggestion of a Credit Union is a great alternative.

Let me be more specific:

Citi is in more distress than average and has had their corporate bonds downgraded to near-junk BBB status.

I know this because I hold about $20K in CitiNotes, maturing in 2010, and have seen the trading value of these bonds decrease by -25% since buying them last year.

Which, by the way, is another reason for me not to get a Citicard: I already have risk with them, anyway.

I'll check out Pulaski and credit unions.

Message Edited by watchnerd on 04-05-2008 09:58 AM

Message Edited by watchnerd on 04-05-2008 10:01 AM