First time since 2004 --- need advice

Anonymous · ‎01-16-2013

Alright guys. I've had the same credit card since high school 2004 (My one and only credit card).

However, I finally caved in over the weekend and applied for two cards. I got approved for the Discover IT 2500k (which arrived yesterday . talk about super fast!!) and the Chase Freedom 3k. I have a total of three cards now. The one I had since 2004, and the two I got over the weekend.

When I checked my mail today I saw a pre screened invitation offer for Citi Simplicity. I'm 99% sure they will approve me. Should I go ahead and add a fourth card, or should I just stick with the above 3?

newportguy · ‎01-16-2013

@Anonymous wrote:
Alright guys. I've had the same credit card since high school 2004 (My one and only credit card).

However, I finally caved in over the weekend and applied for two cards. I got approved for the Discover IT 2500k (which arrived yesterday . talk about super fast!!) and the Chase Freedom 3k. I have a total of three cards now. The one I had since 2004, and the two I got over the weekend.

When I checked my mail today I saw a pre screened invitation offer for Citi Simplicity. I'm 99% sure they will approve me. Should I go ahead and add a fourth card, or should I just stick with the above 3?

If i wasn't planning on getting a car or mortgage loan within the next 6 mo - 1yr ... Go for it

Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****

Anonymous · ‎01-16-2013

No such plans. I'm thinking the reason they kept approving me was the stellar AAoA and never being late on the one card I had. I'm not sure how far i should ride this wave. Should I keep adding more and more cards until my surfboard flips over?

newportguy · ‎01-16-2013

@Anonymous wrote:
No such plans. I'm thinking the reason they kept approving me was the stellar AAoA and never being late on the one card I had. I'm not sure how far i should ride this wave. Should I keep adding more and more cards until my surfboard flips over?

That's up to you !!! I wouldn't ........ For me 4 cards is plenty... Just my 2 cents ............ Also the more cards you add the lower your AAoA is going to be

Current Score: myFico EQ - 794 ( 11/ 29/2012 ) amexFico EX - 787 (10/15/2012) myFico TU - 780 (11/29/2012) Credit Sesame - 809 (02/04/2013) Goal Score * 800 Club *
****** Garden Club Member -- Last HP Jan 3rd 2013 *******
*** Amex - BCP 10 K * PenFed - CR 5 K * Amex - GDSM 5 K *
Discover - IT 5 K ***** NO MORE APPS FOR ME IN 2013 *****

bs6054 · ‎01-16-2013

@Anonymous wrote:
Alright guys. I've had the same credit card since high school 2004 (My one and only credit card).

However, I finally caved in over the weekend and applied for two cards. I got approved for the Discover IT 2500k (which arrived yesterday . talk about super fast!!) and the Chase Freedom 3k. I have a total of three cards now. The one I had since 2004, and the two I got over the weekend.

When I checked my mail today I saw a pre screened invitation offer for Citi Simplicity. I'm 99% sure they will approve me. Should I go ahead and add a fourth card, or should I just stick with the above 3?

Don't add a card just because of a prescreened invitation for it (which doesn't really imply anything). Do you need/want a card to increase overall CL?

If yes, think about what sort of card you want. The Simplicity has no rewards at all, it's good if you carry a balance or want to transfer a balance during the intro period.

Does that fit your profile?

Anonymous · ‎01-16-2013

bs6054 wrote:

Don't add a card just because of a prescreened invitation for it (which doesn't really imply anything). Do you need/want a card to increase overall CL?
If yes, think about what sort of card you want. The Simplicity has no rewards at all, it's good if you carry a balance or want to transfer a balance during the intro period.
Does that fit your profile?

Hmmm...That doesn't really fit my proifile. I already did a balance transfer to the new Discover card. So I don't really need the Citi for a balance transfer. It also is a bit of a bummer that it has no rewards compared to the Chase and Discover. I would like to increase my overall CL though for the whole "emergency fund" thing. Is "emergency fund" or "just in case" a good enough reason for adding another card?

bs6054 · ‎01-16-2013

@Anonymous wrote:

Hmmm...That doesn't really fit my proifile. I already did a balance transfer to the new Discover card. So I don't really need the Citi for a balance transfer. It also is a bit of a bummer that it has no rewards compared to the Chase and Discover. I would like to increase my overall CL though for the whole "emergency fund" thing. Is "emergency fund" or "just in case" a good enough reason for adding another card?

Yes, from most people on this forum (and probably "No" from credit guidance people as this starts the slippery slope for some people!). 4 cards are certainly not too many for most people, but my point was, choose which card to apply for in a thoughtful way, rather than just applying for one that happens to have sent you an invite.

So questions to ask yourself:

a) Do I want a low balance card for emergencies. Then Simplicity is good for emergencies that happen in the next 18 months, Barclays Ring for example might be another choice that has a higher APR but lasts indefinately.

b) Or do I need rewards. If so, what kind. I have Chase and Discover, which offer rotating 5% categories. Should I look for cards that fill holes, e.g. there are tons of cards that offer 2 and 3 on things like gas, grocery and drug stores all the time, useful when the others don't cover them. Or do I need miles/hotel points. Lots of cards for those, both specific airline/hotel and ones that transfer. Look at an Amex charge card for example.

c) How much do I spend? Both Discover and Freedom cap the quarterly spend on 5% categories. Will I use all that up. If so, maybe a 2% card (Fidelity/Priceline) that will earn a little more after the cap.

d) What is my credit score/history. If it's high you can get some useful higher-end cards, Sapphire Preferred is much loved round here and would be useful with the Freedom, a Penfed gas card gives 5% on gas if you spend a lot there, BCP/BCE from Amex give you cash back on groceries.

So lots of choices, so decide what is important, what is within your range. And the best answer might be Simplicity, but you should look at the other possibilities first!

Anonymous · ‎01-16-2013

Thanks a lot for that overview, bs604. Lots to think about.

E150GT · ‎01-16-2013

have cash for emergencies.

CSP-$8700, Amex BCE-17.2k, Chase Freedom-$5700
Discover It-$6600, USAA MC-$5900 Ink Bold- $12k United Explorer-$5k

creditnocash · ‎01-16-2013

i wouldnt go for citi personally, but maybe a amex charge card to round off the spree. that way all your inq's and age of cards go up together.

and you could get into the door with amex.

of course with your aaoa cut 2/3 if both cards reported by now, i still see you getting any card (besides preffered versions)

Current: Fico ScoresEQ~706 TU~719 EX 709 4/28/23
Inquiries (24 Months): EQ 0 TU 0 EX 0| Most Recent: A LONG WHILE
Over 12 Months:0

2023 Goals:
Buy A Home
Earn Cash Back

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$7,400
Citi DC $10,000
Citizens Mastercard$7,000