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3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.

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Anonymous
Not applicable

3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.

So my SO is on the road for work a lot and goes through a lot of gas. His company pays him a certain mileage rate but he puts the gas on his personal credit card which he then pays off when he's reimbursed. I think it's long past time for him to add a card with gas perks to his collection but his DPs are such that I'm not so sure he's going to qualify for what I think are his best options. 

 

DPs: Currently has only 3 major CCs and 1 store card.

Cap1 Platinum  11 months old. $500 SL

Kohls 9 months old. $300 SL

Discover It 6 months old.  $2250 SL

US Bank Harley Davidson Visa  5 months old. $1000 SL

 

Fico 8 TU Score is currently 665 according to Discover Scorecard with 2 inquiries and 62% UTL. Which was UTL at time of reporting and is in actuality a good bit lower now. He's not obsessive like me and doesn't pay attention to statement dates, UTL, etc. Just pays it when it's due or sooner. So with his few cards, lower limits and lack of obsessive monitoring his TU score has dropped from 704 last month to 665 this month.

He's got prequalified mailers for Citi Double Cash and AmEx Green but no other preapprovals online. So far I've advised him to pay his cards before the statement cuts/reports for now to decrease his UTL and go for the BoA Cash Rewards next month but he feels like since he is a long time BoA customer he should have a good shot now even at 665 with highish UTL. Checked the credit pulls database and some posts here and see BoA approvals with lower and similar scores but no DPs about UTL. Thoughts?

 

 

 

 

Message 1 of 14
13 REPLIES 13
Taurus22
Valued Contributor

Re: 3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.

I would suggest that your SO make an effort to get some CLI's on the Cap1 and Discover cards since they are both 6 months or older.  That could significantly lower their overall UT% and give a boost on the next statement. You didn't mention the age of the US Bank HD, but if it's within 6 months, I would also hold out until the youngest card is 12 months before making a move. With both of those factors, their score could be back to 700+ and give better options for gas cards, such as Ducks Unlimited or even Fort Knox. (both @ 5% gas)

My Wallet
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Message 2 of 14
Anonymous
Not applicable

Re: 3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.


@Taurus22 wrote:

I would suggest that your SO make an effort to get some CLI's on the Cap1 and Discover cards since they are both 6 months or older.  That could significantly lower their overall UT% and give a boost on the next statement. You didn't mention the age of the US Bank HD, but if it's within 6 months, I would also hold out until the youngest card is 12 months before making a move. With both of those factors, their score could be back to 700+ and give better options for gas cards, such as Ducks Unlimited or even Fort Knox. (both @ 5% gas)


I mentioned Ducks and Fort Knox for later on and he's not interested since he's "never heard of em." Boy do I have a long road ahead schooling him about these things lol. IIRC US Bank card is around 5 months or so. All this financial talk has bored him and now he's wandered off with his phone so I can't check for sure at the moment. 

Message 3 of 14
xaximus
Valued Contributor

Re: 3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.

I wouldn't apply for any cards until he can get his UTI down. Once the UTI is down (under 8% hopefully), once his score refreshes, there are several options available. Some of the ones mentioned in the previous post are good options but I don't think the approval chance is there. I would go with the BoA Cash Rewards for now until AAoA is atleast a year and scores are in the 700's easily.


Scores - All bureaus 770 +
TCL - Est. $410K
Message 4 of 14
Taurus22
Valued Contributor

Re: 3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.

Lol. Well patience is key in credit, as I'm sure you know. If your SO pushes his inquiries too hard, too soon then that could raise the risk of denials. With 2 inquiries for Discover and US Bank within 6 months, they really need to age to 12 months. I know that doesn't give him the instant gratification (I'm guilty of that vise myself) but if his spend on gas really is that significant, it would be worth holding out about 6 months to get a card that offers the 5% return.

 

With overall CL of ~$4000 @ 62% , even $2000 (total) of CLI's between the Discover and Cap1 could instantly reduce the UT% to 40%. That doesn't include paying down over the next 6 months while his credit ages. Also, Ducks Unlimited (although he's never heard of it) is a solid card and pulls EX. So if he has only the Cap1 pull on EX (since Cap1 pulls all 3 bureaus) then Ducks shouldn't get spooked and approval chances would be pretty good.  5% would be worth it IMO.

 

My Wallet
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Message 5 of 14
Anonymous
Not applicable

Re: 3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.


@Taurus22 wrote:

Lol. Well patience is key in credit, as I'm sure you know. If your SO pushes his inquiries too hard, too soon then that could raise the risk of denials. With 2 inquiries for Discover and US Bank within 6 months, they really need to age to 12 months. I know that doesn't give him the instant gratification (I'm guilty of that vise myself) but if his spend on gas really is that significant, it would be worth holding out about 6 months to get a card that offers the 5% return.

 

With overall CL of ~$4000 @ 62% , even $2000 (total) of CLI's between the Discover and Cap1 could instantly reduce the UT% to 40%. That doesn't include paying down over the next 6 months while his credit ages. Also, Ducks Unlimited (although he's never heard of it) is a solid card and pulls EX. So if he has only the Cap1 pull on EX (since Cap1 pulls all 3 bureaus) then Ducks shouldn't get spooked and approval chances would be pretty good.  5% would be worth it IMO.

 


Heh, I am envious of his lack of inquiries. Apparently he's never even tried to get a CLI on his Disco! I swear he doesn't hear a word I say! Just got him to hit em up and his Disco is increased to $4300!

Message 6 of 14
Taurus22
Valued Contributor

Re: 3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.

Bam. With that extra $2,050 that means he just lowered his UT% to 40% right there. Instantly.

He could wait until next month when his Cap1 hits the 12 month mark and chances would be good of another increase there as well.

 

So he should be seeing an increase in his score by the end-of-March statement. After the Cap1 CLI results, it could go up again the next month. After he sees the results, it might not be so difficult to hold out a few more months to get a 5% gas card.

 

Remember, @5% ....every $1,000 he sepnds in gas he gets $50 back, just because he's such a nice guy. (Respendable money that is already gone) Who doesn't like that?

My Wallet
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Message 7 of 14
xaximus
Valued Contributor

Re: 3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.

To add - Discover's next quarter - April - June 2019, the 5% categories are Gas Stations, Uber and Lyft. Based on that, I would definitely bring the UTI down in that time. What is his annual gas spend? Estimated?


Scores - All bureaus 770 +
TCL - Est. $410K
Message 8 of 14
Taurus22
Valued Contributor

Re: 3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.

@xaximus

 

That's a very good point. I didn't think about that. While he lets his credit age, over the next 3 months he will get 5% gas with Discover, so he will only have about 3 more months after the Disco category changes to wait it out.

 

+1 to you

My Wallet
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On Deck: No Plans Currently
Message 9 of 14
Anonymous
Not applicable

Re: 3% or Better Gas Card Recs for my SO? Considering BoA Cash Rewards.


@xaximus wrote:
To add - Discover's next quarter - April - June 2019, the 5% categories are Gas Stations, Uber and Lyft. Based on that, I would definitely bring the UTI down in that time. What is his annual gas spend? Estimated?

Excellent point! 5% cash back on gas and he's still in his first year so cash back match for it too. That should convince him to be patient. His annual gas spend is probably about 5k or more depending on where they send him and how much running around he has to do chasing parts and permits. 

Message 10 of 14
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