@RicHowe wrote:
Usually a new card has the statement close within 2 weeks so I usually wait until the first statement closes with a zero balance. Helps when the new tradeline posts to the CRAs with zero balance. Less impact to scores.
Nice tactic. Dont have to worry about a balance reporting on accident.
@wasCB14 wrote:No bonus to earn...no other clear upcoming occasion to use it...
I can't imagine even getting a card in such circumstances.
Okay? Not sure what that has to do with this thread.
@wasCB14 wrote:
@Brian_Earl_Spilner wrote:
@wasCB14 wrote:No bonus to earn...no other clear upcoming occasion to use it...
I can't imagine even getting a card in such circumstances.
Okay? Not sure what that has to do with this thread.
I would never go out of my way to wait a particular length of time to use a new card. If I have a good occasion to use something, I use it.
I can't imagine applying for a card without one of two motivations:
-Getting a bonus or travel perk
-Using it for some special situation (a large transaction, PIN, some protection benefit)
To me, the idea of getting a card and not using it merely because it's a new account makes little sense. If I'm waiting to use it, I can't imagine what my reason for getting it would have been.
In me and my wife's situation, the cards have a purpose, we just don't need to use them yet.
My PayPal card will be my new everyday spend as I downsize, consolidate and PC my cards. I've already done my monthly spend so I have no need to use it for 3 weeks unless I feel like buying a want. Eating out for lunch or dinner is covered by my Discover this quarter. I could buy a new phone with it, but seeing as how the report they pulled is showing a high utilization due to the card being unplanned, it might raise flags to bring my new card to 67% utilization on the first day. Especially since it's Synchrony and I have no history with them. Why did I apply for it without planning ahead? I had a good feeling and it paid off. Was it a good idea? Of course not. 😂
My wife's Cash Rewards was applied for to be used strictly for our dog who's elliptic and requires frequent vet visits and expensive medication. She already has a Care Credit, but that was nearly maxed out when our dog had emergency surgery with complications, then complications with the recovery requiring another procedure. Rather than use our savings, my wife would rather have cards set aside to keep those charges together and in order until they're paid. That's just the way she does things. The card is a backup in case of emergency and thus far hasnt been needed.
@Anonymous wrote:It used to be, you'd apply for a card by mail (or phone), and wait a few weeks for it to be approved, set up, and card mailed to you... so once you got the card, it was ready to go. Now, with instant approvals and ability to use the card online right away in some cases (like the Amazon cards), it's easy to put charges on immediately.
In the case of my Amazon card (the only new card I've applied for in 13+ years), I used it for a small Amazon purchase a few days after I applied and was instantly approved. That way, I don't appear desperate, I'm not running up a large balance with a bank I had no history with previously, and it also tests to ensure everything works as expected. A few days later, I made a couple more, somewhat larger Amazon purchases, and also used the card locally once i received it in the mail.
Even though the statement didn't close for a month and the 1st payment wasn't due until a month after that, I did make a payment before the 1st statement close, but I also let a partial balance report. That way I could ensure they could receive a payment from my bank's bill pay, gauge how soon it posts, and also show them that I'm not just going to run up the bill and not pay. I also made that 1st payment to keep utilization down, since I ran up about $700 in charges that month and also had the limit lowered to $1500... I didn't want the 1st statement to report a 50% utilization, lol.
But, in theory at least, there's no "wrong" way to use a new card, that isn't wrong in general (not paying, maxing it out, manufactured spend, laundering, break-out fraud etc.)
What you described is basically what I do with all my new accounts. I was starting to think I was the only one. Lol