Credit Card Gameplan

[keithbward]

This is of course at least a year off, but I wanted to get some feedback from you guys and gals. I've learned so much from these forums and just wanted the opinions from you. I currently have a handful of subprime cards. (First Premier, Milestone, Verve, Credit One, and Merrick Bank) I also have Capital One Platinum (secured), Capital One Platinum (unsecured) QuicksilverOne, DiscoverIT (secured) and a NFCU cashRewards. I plan on closing my subprime cards and the secured CapOne card. The limits for my current revolving accounts would only be affected by losing about 10%-12%. The limits are low and I don't leave balances on them because of the high APR. That's just some back story to it. My credit report will be clear of any collection and many positive tradelines. Hopefully I'll be looking at the mid 700's which is more than the goal I set for myself back in January when I decided to do something about my financial situation.

Hopefully with inquiries falling off and aging I will be able to qualify for prime cards and more rewarding cards to add to my wallet. Becoming aware of my credit and resolving my issues has made me 1000% better at budgeting and controling my spending and finances. After a lengthy conversation with a CapOne rep, I was told that I could PC my QuicksilverOne to the Quicksilver and my Classic Platinum to possibly a Venture and retain my history to not further take a hit on my AAoA. I plan on closing all my subprime cards as they have served their purpose. Question 1: Should I close them at the year mark or let them get to the 2 year mark? Also should I need feedback on which prime cards to go after. I've been looking at Citi Dividend or ThankYou Perferred, AMEX Everyday or Blue Cash, Chase Freedom or Sapphire Preferred. I was looking at the Barclaycard Arrival Plus World for travel. I'm looking at maybe adding three of those in 12-18 months. I would really like some suggestions and why from you guys who have these cards and why you like one over another. Any others I should look at? Thanks guys and gals.

[SevenNEW]

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@keithbward wrote:

This is of course at least a year off, but I wanted to get some feedback from you guys and gals. I've learned so much from these forums and just wanted the opinions from you. I currently have a handful of subprime cards. (First Premier, Milestone, Verve, Credit One, and Merrick Bank) I also have Capital One Platinum (secured), Capital One Platinum (unsecured) QuicksilverOne, DiscoverIT (secured) and a NFCU cashRewards. I plan on closing my subprime cards and the secured CapOne card. The limits for my current revolving accounts would only be affected by losing about 10%-12%. The limits are low and I don't leave balances on them because of the high APR. That's just some back story to it. My credit report will be clear of any collection and many positive tradelines. Hopefully I'll be looking at the mid 700's which is more than the goal I set for myself back in January when I decided to do something about my financial situation.

Hopefully with inquiries falling off and aging I will be able to qualify for prime cards and more rewarding cards to add to my wallet. Becoming aware of my credit and resolving my issues has made me 1000% better at budgeting and controling my spending and finances. After a lengthy conversation with a CapOne rep, I was told that I could PC my QuicksilverOne to the Quicksilver and my Classic Platinum to possibly a Venture and retain my history to not further take a hit on my AAoA. I plan on closing all my subprime cards as they have served their purpose. Question 1: Should I close them at the year mark or let them get to the 2 year mark? Also should I need feedback on which prime cards to go after. I've been looking at Citi Dividend or ThankYou Perferred, AMEX Everyday or Blue Cash, Chase Freedom or Sapphire Preferred. I was looking at the Barclaycard Arrival Plus World for travel. I'm looking at maybe adding three of those in 12-18 months. I would really like some suggestions and why from you guys who have these cards and why you like one over another. Any others I should look at? Thanks guys and gals.

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Congratulations! It seems like you are planning things carefully.

Others will chime in, but I would suggest opening prime cards first, and then getting rid of your existing tradelines. Just to be on the safe side.

As for new cards, you can find a lot of advice on this forum. I suppose it really depends on what your expenses are and what you are interested in. I have a family of four and we spend a lot on groceries. We also like cash back more than other rewards, which is why I got the Amex BCP (6% cash back on groceries) DW is applying for a Sallie Mae to get gas, and so forth.

As for CapOne, if you can convert them into cards without AF it's worth keeping them to improve your AAoA. Just my opinion.

Edit: clarified one point.

[Anonymous]

Not all prime cards are created equal. What's your spending pattern?

[nachoslibres]

1.  I would do what you say and PC the cards you can into no AF cards that hopefully you can use, then close the ones you can't PC that have AF's.

2.  The question you ask about what cards are best for you depends on your spend.  Can you list your annual or monthly spend and what it consists of for the most part (i.e. how much is gas, groceries, restaurants, travel, etc.)?  This will help people give you suggestions on what cards to get when the time comes.

[keithbward]

Thanks. Fill up on gas once a week if I don't have to drive for work around the state then it would be 2-3 times. Eat out once a week and maybe all weekend. Groceries are bout for the month but we go to the fresh market weekly. I do fly out of town personally once a month to visit family, and friends, old air force buddies. I'm not big on having balances, so I really only charge what I have to spend liquid cash wise, so as soon as the transaction posts I pay it off in full.

[Anonymous]

[EDITED. Originally I accidentallysaid that The Sallie mae Mastercard offers 5% off restaurants. In fact it offers 5% off groceries. This is why the Cash+ and Sallie Mae are good companion cards for their respective categories. Thank you user Craaaig for pointing out the rather important slip-up. ]

Ok, here is my recommendation. Three card combo: 

1. Sallie Mae Mastercard: 5% gas (limit $250), 5% groceries (limit $250). Bonus: 5% on amazon (limit $750)

2. Fidelity Amex: 2% on everything. Rewards get redeeemed into a Fidelity Account, which can be a retirement, investment or cash management (essentially checking) account. The cash management account has free unlimited ATM fee refunds. 

3. US Bank Cash+ Visa Signature: 5% cashback on two categories, must select every quarter. Here you will select Restaurants and Fast Food. 

Cards like CSP are great but only if you charge a lot to it, which it doesn't sound like you do. Freedom can also be good, but it has the hassle of having to remember what they are offering this quarter because it changes constantly. 

If you fly a lot, the best card to earn money on that is the PenFed Premium Travel Rewards Amex (at least in my opinion) which gives you ~4.2% cashback on airline tickets. However, it is tougher to qualify for than your average credit card. I would say give this a couple of years before applying for such a competitive card. 

Gluck! 

[Craaaig]

^^^^^ Sallie Mae is 5% on Groceries not restaurants ...

I wish it was restaurants bc unfortunately I eat out a lot more than I do grocery shop lol.

[Anonymous]

Sorry yes groceries. In the above combo you use the Cash+ for restaurants. 

I think the combination of those cards is one of the best for "low spenders"

[TheFate]

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@Anonymous wrote:

Sorry yes groceries. In the above combo you use the Cash+ for restaurants. 

I think the combination of those cards is one of the best for "low spenders"

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I'd personally go with a Chase freedom over the Fidellity... or even the Amex Blue Cash

Also Isn't Sallie Mae's 5% amazon only for books?

[nachoslibres]

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@Anonymous wrote:

Ok, here is my recommendation. Three card combo: 

1. Sallie Mae Mastercard: 5% gas (limit $250), 5% groceries (limit $250). Bonus: 5% on amazon (limit $750).  These limits are monthly limits.

2. Fidelity Amex: 2% on everything. Rewards get redeeemed into a Fidelity Account, which can be a retirement, investment or cash management (essentially checking) account. The cash management account has free unlimited ATM fee refunds. 

3. US Bank Cash+ Visa Signature: 5% cashback on two categories, must select every quarter. Here you will select Restaurants and Fast Food. 

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I'd go with this advice.