topic Re: A Credit Card Dilemma -- Need Advice! in Credit Cards

A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 18:50:00 GMT

Hi all,

I’m new to this forum, and I wanted a little advice on a recent credit card acquisition information I’ve found myself.

My credit scores would be considered somewhat poor to fair. They are the following: Equifax – 694, Transunion – 675, and Experian – 651. Sufficed to say, the credit cards I already own are pretty middling.

I have the Capital One Platinum, Barclaycard Rewards, and Wells Fargo Rewards. The CO Platinum has a small credit limit that I can’t even remember; Barclaycard is at $3000 (it was bumped up due to good payment history with them); and WF Rewards at $6000 (the same as Barclaycard … bumped up.)

Now flash forward to a couple of days ago. I had received an invitation from Chase Freedom to apply for their credit card. I thought their rewards were pretty decent, and this was the first time Chase had offered any of their products to me. So I did a little research on their card, and saw the Chase Sapphire Preferred. I expect to do some travel later this year, and hopefully from then on; so this looked a lot more attractive to me. But as I continued to do more research on credit cards that were geared towards travel rewards, I saw that the Barclaycard Arrival World Travel card was a little better in terms of a lower annual fee, and 2x rewards on everything. (Chase Sapphire Preferred has 1x rewards, other than 2 for travel.)

So I applied for the Barclaycard Arrival World Mastercard, and got the dreaded “Your application merits further review.” Since a hard pull was going to be conducted, and I didn’t think I’d get the Barclaycard Arrival World Mastercard, I decided to hedge my bets and at least put a period of hard pulls to good use, and I applied for the Chase Freedom card – only to get the same message that my application will be reviewed. Sufficed it to say, I was bummed.

After digging around on credit forums (I’m not even sure if it was this one), I learned about the reconsideration numbers one can call. So the next day (yesterday), I gave Barclaycard a call. After a few questions that I was expecting the credit analyst to ask, I got approved for $2500. But I was invigorated, and I didn’t stop there. I called the Chase reconsideration number, and they had informed me that I was already approved for the Freedom card. They just hadn’t notified me yet. I have no idea why I asked this – perhaps I was overtaken with triumph, pride, or confidence – but I asked if I could just upgrade to the Chase Sapphire Preferred card instead. The analyst gave me the shpiel that it’s a different product and it would have to be a separate application (I’m a newbie when it comes to being a credit enthusiast, so you’ll have to excuse the ignorance on my part). So, I applied on my smartphone, and then called back right away. I was approved for the Chase Sapphire Preferred for a $5000 limit. I was ecstatic! After years of having credit cards that lacked the pizazz of credit cards that one could acquire with excellent credit, I finally had two cards that typically require excellent credit (according to various credit card blogs) to obtain.

But …

Now I have two credit cards – with an emphasis on travel rewards -- with annual fees. To obtain the 40,000 bonus points, I’d have to spend $3000 on each credit card ($6,000 total). So, after further thought, I realized that it didn’t make sense to apply for these at the same time. (Like I mentioned, I must’ve been overcome with confidence and ambition. Lol)

So my question is, should I cancel one of them (I’m leaning towards the Chase Sapphire Preferred, although it offers me a higher line of credit), or does it make my credit history look good, having a larger line of total credit? (I do know, however, that is decreases my average age of credit, though.)

The emotional side of me wants to keep both cards, and cancel the Chase Freedom card (which has no annual fee), because they were cards I wouldn’t have been able to obtain before. The logical side of me suggests I keep the Freedom card and cancel either the Barclaycard Arrival World Mastercard or the Chase Sapphire Preferred, since it doesn’t make sense to have two cards with annual fees, with bonus reward periods starting at the same time. I guess I could always apply for one of them again later.

Does any credit enthusiast here offer any advice or suggestions?

Thanks in advance for your time.

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 18:56:45 GMT

You have taken the inquiry hit for the cards, and probably the new accounts have been established, so damage is already done to the credit report (You MIGHT be able to get them to cancel the card in the sense of removing it from the credit report, but this isn't common).

Neither card has an annual fee this year, right? So I would keep both of them for now, and reevaluate when the fee becomes due. (You can downgrade the CSP to a plain Sapphire at that point, which has no fee). Just make sure you get at least one of the bonuses, spending $3000 on one of the cards.

(If you want to be more adventureous, look up Manufactued Spend and see ways to spend $3K on each card at very little cost.)

Re: A Credit Card Dilemma -- Need Advice!

Legen_dary — Wed, 07 May 2014 18:57:31 GMT

@Anonymous wrote:
Hi all,

I’m new to this forum, and I wanted a little advice on a recent credit card acquisition information I’ve found myself.
My credit scores would be considered somewhat poor to fair. They are the following: Equifax – 694, Transunion – 675, and Experian – 651. Sufficed to say, the credit cards I already own are pretty middling.

I have the Capital One Platinum, Barclaycard Rewards, and Wells Fargo Rewards. The CO Platinum has a small credit limit that I can’t even remember; Barclaycard is at $3000 (it was bumped up due to good payment history with them); and WF Rewards at $6000 (the same as Barclaycard … bumped up.)
Now flash forward to a couple of days ago. I had received an invitation from Chase Freedom to apply for their credit card. I thought their rewards were pretty decent, and this was the first time Chase had offered any of their products to me. So I did a little research on their card, and saw the Chase Sapphire Preferred. I expect to do some travel later this year, and hopefully from then on; so this looked a lot more attractive to me. But as I continued to do more research on credit cards that were geared towards travel rewards, I saw that the Barclaycard Arrival World Travel card was a little better in terms of a lower annual fee, and 2x rewards on everything. (Chase Sapphire Preferred has 1x rewards, other than 2 for travel.)
So I applied for the Barclaycard Arrival World Mastercard, and got the dreaded “Your application merits further review.” Since a hard pull was going to be conducted, and I didn’t think I’d get the Barclaycard Arrival World Mastercard, I decided to hedge my bets and at least put a period of hard pulls to good use, and I applied for the Chase Freedom card – only to get the same message that my application will be reviewed. Sufficed it to say, I was bummed.

After digging around on credit forums (I’m not even sure if it was this one), I learned about the reconsideration numbers one can call. So the next day (yesterday), I gave Barclaycard a call. After a few questions that I was expecting the credit analyst to ask, I got approved for $2500. But I was invigorated, and I didn’t stop there. I called the Chase reconsideration number, and they had informed me that I was already approved for the Freedom card. They just hadn’t notified me yet. I have no idea why I asked this – perhaps I was overtaken with triumph, pride, or confidence – but I asked if I could just upgrade to the Chase Sapphire Preferred card instead. The analyst gave me the shpiel that it’s a different product and it would have to be a separate application (I’m a newbie when it comes to being a credit enthusiast, so you’ll have to excuse the ignorance on my part). So, I applied on my smartphone, and then called back right away. I was approved for the Chase Sapphire Preferred for a $5000 limit. I was ecstatic! After years of having credit cards that lacked the pizazz of credit cards that one could acquire with excellent credit, I finally had two cards that typically require excellent credit (according to various credit card blogs) to obtain.

But …

Now I have two credit cards – with an emphasis on travel rewards -- with annual fees. To obtain the 40,000 bonus points, I’d have to spend $3000 on each credit card ($6,000 total). So, after further thought, I realized that it didn’t make sense to apply for these at the same time. (Like I mentioned, I must’ve been overcome with confidence and ambition. Lol)

So my question is, should I cancel one of them (I’m leaning towards the Chase Sapphire Preferred, although it offers me a higher line of credit), or does it make my credit history look good, having a larger line of total credit? (I do know, however, that is decreases my average age of credit, though.)
The emotional side of me wants to keep both cards, and cancel the Chase Freedom card (which has no annual fee), because they were cards I wouldn’t have been able to obtain before. The logical side of me suggests I keep the Freedom card and cancel either the Barclaycard Arrival World Mastercard or the Chase Sapphire Preferred, since it doesn’t make sense to have two cards with annual fees, with bonus reward periods starting at the same time. I guess I could always apply for one of them again later.

Does any credit enthusiast here offer any advice or suggestions?

Thanks in advance for your time.

I don't see any reason to drop the freedom, since there's no annual fee, and if you don't mind keeping track of the categories, then 5% back is pretty nice, esp if you're getting the bonus from having a Chase bank account. Why not keep both travel cards, get the spend bonuses, then cancel the one you don't intend to keep using?

Re: A Credit Card Dilemma -- Need Advice!

BigBS — Wed, 07 May 2014 19:05:21 GMT

Congrats! My $.02 is that all 3 are great cards to have. As you noted, the Arrival and CSP are great for travel and the freedom is great for the 5% categories. The CSP and freedom combo is nice for accumulation of UR points. If it is at all possible recommend keeping them all and working the $6k spending as necessary for the bonus points. Not fun as I am trying to finalize spending for the Arrival and AMEX Platinum in the next couple of weeks. I'm not good at manufactured spending, but have been creative at getting normal things taken care of - it will be close though.

Re: A Credit Card Dilemma -- Need Advice!

Dw4250 — Wed, 07 May 2014 19:34:01 GMT

It sounds like you are a prime candidate for using a service like ChargeSmart.

You can pay items with your credit card normally paid for with a check (i.e. mortgage or auto loan). This allows you to run up your spending pretty quickly. They are a legit company. I don't think this is considered MS as you are not trying to hide anything from your CCC, the way using the Vanilla gift card/bluebird approach might be seen (although I could be wrong). I've never heard of anyone being AA/CLD for using ChargeSmart (again someone correct me if I am wrong).

Two things to remember:

1. They charge a fee for their service.

2. Under normal circumstances, the fee would be more than the "rewards" (and so you would not want to use this service). But since you're trying to reach minimum limits, it's probably worth it.

Anyway, that may be a way to solve your problem and keep the cards and the bonuses. Good luck!

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 19:34:12 GMT

Well you are right with the Barclay sounding like a better deal. BUT, the CSP is a beautiful card I would honestly choose that over over the Barclays. I love getting comments from people all the time because how nice it is and the heaviness they feel because it is made of medal. Just my personal opinion😃

Re: A Credit Card Dilemma -- Need Advice!

SunriseEarth — Wed, 07 May 2014 19:50:30 GMT

@Anonymous wrote:
Hi all,

I’m new to this forum, and I wanted a little advice on a recent credit card acquisition information I’ve found myself.
My credit scores would be considered somewhat poor to fair. They are the following: Equifax – 694, Transunion – 675, and Experian – 651. Sufficed to say, the credit cards I already own are pretty middling.

I have the Capital One Platinum, Barclaycard Rewards, and Wells Fargo Rewards. The CO Platinum has a small credit limit that I can’t even remember; Barclaycard is at $3000 (it was bumped up due to good payment history with them); and WF Rewards at $6000 (the same as Barclaycard … bumped up.)
Now flash forward to a couple of days ago. I had received an invitation from Chase Freedom to apply for their credit card. I thought their rewards were pretty decent, and this was the first time Chase had offered any of their products to me. So I did a little research on their card, and saw the Chase Sapphire Preferred. I expect to do some travel later this year, and hopefully from then on; so this looked a lot more attractive to me. But as I continued to do more research on credit cards that were geared towards travel rewards, I saw that the Barclaycard Arrival World Travel card was a little better in terms of a lower annual fee, and 2x rewards on everything. (Chase Sapphire Preferred has 1x rewards, other than 2 for travel.)
So I applied for the Barclaycard Arrival World Mastercard, and got the dreaded “Your application merits further review.” Since a hard pull was going to be conducted, and I didn’t think I’d get the Barclaycard Arrival World Mastercard, I decided to hedge my bets and at least put a period of hard pulls to good use, and I applied for the Chase Freedom card – only to get the same message that my application will be reviewed. Sufficed it to say, I was bummed.

After digging around on credit forums (I’m not even sure if it was this one), I learned about the reconsideration numbers one can call. So the next day (yesterday), I gave Barclaycard a call. After a few questions that I was expecting the credit analyst to ask, I got approved for $2500. But I was invigorated, and I didn’t stop there. I called the Chase reconsideration number, and they had informed me that I was already approved for the Freedom card. They just hadn’t notified me yet. I have no idea why I asked this – perhaps I was overtaken with triumph, pride, or confidence – but I asked if I could just upgrade to the Chase Sapphire Preferred card instead. The analyst gave me the shpiel that it’s a different product and it would have to be a separate application (I’m a newbie when it comes to being a credit enthusiast, so you’ll have to excuse the ignorance on my part). So, I applied on my smartphone, and then called back right away. I was approved for the Chase Sapphire Preferred for a $5000 limit. I was ecstatic! After years of having credit cards that lacked the pizazz of credit cards that one could acquire with excellent credit, I finally had two cards that typically require excellent credit (according to various credit card blogs) to obtain.

But …

Now I have two credit cards – with an emphasis on travel rewards -- with annual fees. To obtain the 40,000 bonus points, I’d have to spend $3000 on each credit card ($6,000 total). So, after further thought, I realized that it didn’t make sense to apply for these at the same time. (Like I mentioned, I must’ve been overcome with confidence and ambition. Lol)

So my question is, should I cancel one of them (I’m leaning towards the Chase Sapphire Preferred, although it offers me a higher line of credit), or does it make my credit history look good, having a larger line of total credit? (I do know, however, that is decreases my average age of credit, though.)
The emotional side of me wants to keep both cards, and cancel the Chase Freedom card (which has no annual fee), because they were cards I wouldn’t have been able to obtain before. The logical side of me suggests I keep the Freedom card and cancel either the Barclaycard Arrival World Mastercard or the Chase Sapphire Preferred, since it doesn’t make sense to have two cards with annual fees, with bonus reward periods starting at the same time. I guess I could always apply for one of them again later.

Does any credit enthusiast here offer any advice or suggestions?

Thanks in advance for your time.

I see no reason to cancel any of the CCs. If you can't use them, SD them.

As for the spend, what's the timeframe? I'd probably start the process on one card, and then try to finish on the rest. And pay with the cards at any place that accepts those cards. You'd be surprised how quickly even small purchases can add up. Quit using your other cards if you have to for the meantime.

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 19:59:27 GMT

Hey longtimelurker,

Thanks for the reply.

I figured the inquiry hit would be ... well, a hit, but I'm not making any major purchases within the next year, I figured it would be fine for now as hard pulls fall off one's report after a year. (I hope that's correct.)

You're right about neither the Barclaycard Arrival World Mastercard nor the CSP having an annual fee this year. I don't don't think I make enough to spend $6000 to take advantage of the rewards. If I added my girlfriend (a responsible person) to one of the accounts, would her using the card still factor into acquiring the bonus points? (I've never added an authorized user to a credit card before).

With that said, I do have some credit debt on my other cards, but I drive so much, and with other expenditures, I'm fairly certain I can accumulate $3,000 dollars on either of those cards.

Thanks for your suggestion of the Manufacture Spend technique. I'm definitely looking into that.

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 20:01:13 GMT

Hi Legen_dary,

Thanks for the reply, as well.

I'm not really sure I can actually afford to drop $6000 on everyday expenses within 3 months. lol

Otherwise, I think what you suggested would be a solid plan. I'm just not sure if having pride of ownership -- the Barclaycard Arrival World Mastercard and the CSP -- is enough to warrant having two cards that have annual fees.

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 20:06:36 GMT

Hi BigBS,

Thanks for the feedback.

I like having all three of those cards, but I'm also saddled with 3 other credit cards that I do not want to cancel (as I don't want to lessen the overall age of credit history).

Good luck with cramming in the final amounts needed to attain your bonuses. I'm worried I might fall into the trap of spending things I don't really need JUST to get the bonuses. With gas, grocery, utilities (if I can pay the latter with credit card), cell phone bill, etc .... I think I can do $3k on one of them. $6k is a tall order, and I'll probably at least sit down on gauge whether that's even possible. Or ask if any family members plan on making big purchases with cash/debit, and have me pay for it instead. (They can pay me the cash.)

*sigh*

This is not a bad position to be in, I'm sure, but it wasn't as fun to think about as I first thought lol

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 20:08:57 GMT

Hey Dw4250,

Thanks for the feedback.

That's an interesting service; I've never heard it before.

I do have a mortage, and an auto loan. The auto loan, however, is tied to a credit union checking account that I have, and it takes directly from there. I don't think I can separate the payment from it, since the same credit union is financing the auto loan. But the mortgage is an interesting idea. I guess I have to find out how much they would charge, and if attaining the bonuses help offset what I would pay to use the ChargeSmart service.

Thanks again for that suggestion.

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 20:11:27 GMT

Hey DerkeD,

You're appealing to my aesthetic appreciation side. lol

I'm wondering if the unpractical nature of having all three of the cards can be justified and offset with the CSP being a beautiful card. (I didn't relize it was metal.) Another reason to stay with the CSP is that, while the annual fee is slightly more, the credit limit is higher.

Thanks for the feedback.

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 20:16:19 GMT

Hi SunriseEarth,

Thanks for the feedback, and the solid suggestion.

What does "SD them" mean? (I did a cursory Google search and couldn't find a definition for that.)

I like your plan -- and I'm not sure if there's 0% interest on initial purchases for a time period or not, as I didn't even focus on that -- but I wonder how much of a financial trap I might fall in with that.

It's definitely an idea I'm going to explore, though.

Thanks again!

Re: A Credit Card Dilemma -- Need Advice!

cmaleek — Wed, 07 May 2014 20:30:44 GMT

Congrats on the great cards!

SD = Sockdrawer... aka keep it IN your sockdrawer to allow it to age!

and Yes if you add an AU(Authorized User) their spending and expenses add to the spending. HTH!

Re: A Credit Card Dilemma -- Need Advice!

vpae — Wed, 07 May 2014 20:31:05 GMT

@Dw4250 wrote:
It sounds like you are a prime candidate for using a service like ChargeSmart.

You can pay items with your credit card normally paid for with a check (i.e. mortgage or auto loan). This allows you to run up your spending pretty quickly. They are a legit company. I don't think this is considered MS as you are not trying to hide anything from your CCC, the way using the Vanilla gift card/bluebird approach might be seen (although I could be wrong). I've never heard of anyone being AA/CLD for using ChargeSmart (again someone correct me if I am wrong).

Two things to remember:
1. They charge a fee for their service.
2. Under normal circumstances, the fee would be more than the "rewards" (and so you would not want to use this service). But since you're trying to reach minimum limits, it's probably worth it.

Anyway, that may be a way to solve your problem and keep the cards and the bonuses. Good luck!

Thanks for the ChargeSmart recommendation, I haven't heard of this before. Nice site.

@Anonymous wrote:
Hi SunriseEarth,

Thanks for the feedback, and the solid suggestion.

What does "SD them" mean? (I did a cursory Google search and couldn't find a definition for that.)

I like your plan -- and I'm not sure if there's 0% interest on initial purchases for a time period or not, as I didn't even focus on that -- but I wonder how much of a financial trap I might fall in with that.

It's definitely an idea I'm going to explore, though.

Thanks again!

Welcome to the forums! SD means to 'Sock Drawer' them, put it away and not use it. Check out this thread! - http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 21:32:36 GMT

@cmaleek wrote:
Congrats on the great cards!

SD = Sockdrawer... aka keep it IN your sockdrawer to allow it to age!

and Yes if you add an AU(Authorized User) their spending and expenses add to the spending. HTH!

Alas! I just discovered the quote button ....

Got it. Thanks for providing me rundown on that. That's awesome with regard to the AU helping out. My girlfriend wants to enroll in a training certification, and I'm going to ask if she'd like to put it on there.

This is great news. Thanks!

On another note, IF I were to cancel one of the annual fee cards for fear that I wouldn't be able to capitalize on the 40,000 bonus, would I be able to sign up for one of them in the future -- during a bonus promotion period or not?

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 21:33:51 GMT

I would suggest hanging on to the card for at least a year (being the annual fee is waived for the first year) and see how you enjoy all oohhs' and awhhs' you get from people lol. Worst comes to worst you can close the card before you have to apy the annual fee if you choose not to keep the card. However, yes it is made of medal that automatically gives people a sense of wealth and class that you have such a nice card. I love it haha!

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 21:36:54 GMT

@vpae wrote:
Welcome to the forums! SD means to 'Sock Drawer' them, put it away and not use it. Check out this thread! - http://ficoforums.myfico.com/t5/User-Guidelines-General/Common-Abbreviations/m-p/88458

Thanks for steering me in the right direction! I'm about to check that link out.

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 21:48:24 GMT

@Dw4250 wrote:
It sounds like you are a prime candidate for using a service like ChargeSmart.

You can pay items with your credit card normally paid for with a check (i.e. mortgage or auto loan). This allows you to run up your spending pretty quickly. They are a legit company. I don't think this is considered MS as you are not trying to hide anything from your CCC, the way using the Vanilla gift card/bluebird approach might be seen (although I could be wrong). I've never heard of anyone being AA/CLD for using ChargeSmart (again someone correct me if I am wrong).

Two things to remember:
1. They charge a fee for their service.
2. Under normal circumstances, the fee would be more than the "rewards" (and so you would not want to use this service). But since you're trying to reach minimum limits, it's probably worth it.

Anyway, that may be a way to solve your problem and keep the cards and the bonuses. Good luck!

As a compromise between pure MS and ChargeSmart, consider www.evolve.com

This allows you to pay many lenders by DEBIT card. Buy a Visa card with your credit card (at a drug store or supermarket), at a cost of about $5 per $500, and use this to pay for free on evolve. (In some places you can buy the cards at Simons malls, for example, for just $2.95). One extra step but usually quite a bit cheaper.

Re: A Credit Card Dilemma -- Need Advice!

Anonymous — Wed, 07 May 2014 21:50:22 GMT

What you can do is transfer the credit limit from the Freedom to the Sapphire or vise versa. Dont just close the card out. I have the Slate & Freedom and was just aproved for the Sapphire last week. I had never used the slate so I called and closes it and they trasfered the limit to my Sapphire. So I went from two cards with 5k limite to one Sapphire with a 10k limit. Either way Id never keep a Barclays card over a chase card. To me barclays are a dime a dozen. I was aproved with a 640 credit score a few years ago for the apple visa. Keep chase!