Get a third card?

[jas312]

Hi All,

Background:

Age:  24

Credit History:  Approx 5 years

TU FICO:  Has hovered between 800 and 815 for the past year.

Never carried a balance, paid interest, made a late payment, etc.

Cards:  2 (Barclays w/ ~$6500 limit, ELAN w/ ~$4500 limit)

Loans:  Two auto loans paid in full years ago.  One current.  ~$14k balance out of original amount of $26k.  Thought about paying it off but letting it ride out for more history.  Interest is fairly low, so it's not costing me much.

Inquiries:  0-1 depending on which bureau you look at.

I've been thinking about getting a third card.  My Barclay's is a store card (LL Bean) so rewards are not great for anywhere outside of that store.  The other card I don't use because rewards are terrible, I keep it open for emergencies in case the first card fails me, but it's just been sitting at a 0 balance for probably a year.  So, I've looked at a Citi Double-Cash or Discover IT because either one would benefit me more than my current cards.  I doubt I'd have an issue qualifying for either with a good limit.  Don't care a bit about interest since I'll never carry a balance.  Could be 90% for all I care.

The thing is, I'm also planning on going for a mortgage in the spring.  So I don't want to jeapordize the interest rate or anything on that.  I'd love to walk in there with a score over 800.

Opinions?

Thanks!

[Anonymous]

What do you plan on using the card for? I can understand the double cash especially if you will pay in full every month but in my opinion there are better cards than the discover it (which i have) especially after the first year

[Anonymous]

I have a Discover It, not the biggest fan. I tend to use my BCP way way more than my Discover. I would go for the Citi over the Discover, but that's just my humble opinion

[jas312]

Absolutely everything.  Right now I pay everything with my Barclay's card (bills, gas, food, etc.) and pay in full at the end of the month.

It does work out okay because I get enough rewards where I never have to buy coats or hiking boots or anything out of pocket, but I feel I can do better than 1% with something else.

[Anonymous]

im with smc im a big fan of blue cash (dont have yet) what is your break down of spending in different categories?

[jas312]

About 43% is "Everyday spending" (This appears to be mostly gas and groceries, but my AT&T bill is lumped in here as well)

About 25% "Other" (Home depot, tractor supply, looks like a bunch of miscellaneous stores)

About 15% "Merchandise" (Department stores, Amazon, also notice Time Warner bill is here)

About 7% "Restaurants/Entertainment"

The other 10% is between travel, automotive, and healthcare.

Total spending is about $17k over the past 12 months.

[Anonymous]

I have the Citi Secured as well that I acquired last May 2016, now that my credit has greatly improved I was thinking of cancelling it as well. No card benefits, and can't work around with my $200 CL without going over 30% utilization. So I just simply took it out of my wallet, kept in in the closet and just added my Netflix bill to autopay with that card to gain monthly activity.

Also feeling hopeless on the future graduation of the card. I've been reading that Cit has really not done any good things after graduation. Some Citi rep even suggested me to just apply for an unsecured one since I qualify anyways.

[Anonymous]

Is everyone missing the part about the mortgage app?

I have read here many times that you should have no new accounts within one year of apping for a mortgage, so I would hold off until that closes. Right after you have keys in hand though I would get a few new cards with better rewards. 

[newhis]

The most important thing is your future mortgage.

I have read many many times that do not apply for anything at least 6 months.

Do you plan to get the mortgage in 6 months?

Don't pay your car loan in full before your mortgage. A file without an open loan could drop up to 30 points.

If your mortgage is in more than 6 months, then you could apply for 1 more card. If it is less than 6 months, then wait for your mortgage and then apply for 2-3 cards if you want to get better rewards in things you pay.

17k on credit cards is not that much. For example:

- if you get Citi 2% card, you will get $340 a year

- if you get Chase Freedom Unlimited you will get $255 a year, but have a bonus of up to $325 for new clients, and down the road you may get one of the Sapphire cards and get 25% or 50% more out of your points. Almost 4 years for Citi DC to match the Chase card. For me is better to go with Chase first, then in 3-4 years, if there is no other 2% or more card, go with Citi DC. BTW I don't have the FU yet, but will be my next card for sure.

Of course, if you get a few cards to get better rewards than only a 2% card for everything, the Chase Unlimited is better option against Citi DC for more years.

Good luck with your mortgage and the cards you want to get.

I personally wait for the mortgage, then apply fo (at least 2)r:

- Chase Freedom Unlimited (with $300 bonus)

- Amex Blue Cash Everyday (try the best bonus at the time, right now there are 3 offers: up to $300, $350 and $450 back)

- Discover IT (is great for first year, double the categories 5% and discover deals 5-15%)

[jas312]

Exactly as I suspected.  I shouldn't do anything until I have the mortgage and the closing is over with.

At that point, I may stick with what I have.  Think it'll be time for a new truck 2-3 years after the mortgage, but I don't want to finance that.  I'd rather pay cash less the value of mine.  Or maybe a little $10k loan if I decide to keep my current one as a beater at that point.