Is that "everything else" card really necessary?

[takeshi74]

It's up to each to sort this stuff out.  People should be considering their spend, running the numbers, etc but few seem to do so.  Many seem to just focus on % and assume that more is better without understanding the impact on rewards in terms of actual dollars.

I don't have an X% card for everything else spend.  My CSP is what I use for noncategory spend.

[Anonymous]

I have done some soul searching (again) on what card to use in what capacity. I was REALLY thinking of applying for the Fidelity Visa (and kicking myself for not doing it while it was BofA). When I arrived here at MyFico a bit over a year ago I swore cash back only (or Arrival+ 'miles') because we didn't travel 'that way' to warrant MR/UR. We decided to go for MR for a while but are going to switch to cash back. And while my plan is to direct the cash back to my IRA (with Fidelity) I've opted to use the heck out of my DC as the 'everything else' card and here's why: protections. 

I'm using DC because much of the non-cat spend is for durable goods. With the new-ish extended warranty protection, on top of the price rewind (which I'd never used but I'm now entering any durable goods purchased) I think it's hard to beat Citi on this. 

I realized in my soul searching that the categories that most people have covered are for consumable, NON-durable goods (groceries, gas, restaurants, some kinds of bills). The exceptions are Amazon (whether through SM, Amazon card, or rotating categories), Lowe's/HD (again sometimes or always) and other rotating category things (Cash + sporting goods, electronics, etc.) and I'll add in 3% at department stores on BCP. 

So I'm going to use DC for any durable goods purchased. (Unless they're from Costco and then Costco Visa or FU). 

Hmmm, I guess I'll go read the T & C on the new Costco Visa and see if it has the Citi features I've mentioned. (But I'm not a fan of waiting a year for CB and may opt for FU anyway.) 

[redpat]

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@Anonymous wrote:
I still think that aside from not acquiring credit card debt, statements about what someone "should" or "shouldn't" do are just opinion for the most part.

It's a fact that 3 revolving accounts (credit cards) is the minimum ideal for building up that part of a good FICO score but as far as redundant cards, specific number of cards that is "too many" etc that is very much up to each individual situation. You can't really apply blanket statements this way because there isn't any direct negative to say having a dozen cards versus four.

As an example, lots of high income travel hackers easily benefit from having a dozen or more cards for various perks with lounges, hotel and flight upgrades, concierge services, fee reimbursement, car rental insurance, etc

Seems to me that as with most credit discussions, "needing" card X is completely subjective and ESID.

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Not true, the only cards that I find beneficial for travel perks are Amex Plat and Citi Prestige you don't need to have a dozen cards.  Also, travel cost money and if you want to travel well you have to pay for it.  Therefore, yes you can get many travel benefits and perks but you have to spend a lot anyway.

If I didn't travel for business my travel rewards would be substantial less and I would have to pay more.  Meaning I wouldn't cut my personal travel down at all.

[Anonymous]

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@redpat wrote:

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@Anonymous wrote:
I still think that aside from not acquiring credit card debt, statements about what someone "should" or "shouldn't" do are just opinion for the most part.

It's a fact that 3 revolving accounts (credit cards) is the minimum ideal for building up that part of a good FICO score but as far as redundant cards, specific number of cards that is "too many" etc that is very much up to each individual situation. You can't really apply blanket statements this way because there isn't any direct negative to say having a dozen cards versus four.

As an example, lots of high income travel hackers easily benefit from having a dozen or more cards for various perks with lounges, hotel and flight upgrades, concierge services, fee reimbursement, car rental insurance, etc

Seems to me that as with most credit discussions, "needing" card X is completely subjective and ESID.

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Not true, the only cards that I find beneficial for travel perks are Amex Plat and Citi Prestige you don't need to have a dozen cards.  Also, travel cost money and if you want to travel well you have to pay for it.  Therefore, yes you can get many travel benefits and perks but you have to spend a lot anyway.

If I didn't travel for business my travel rewards would be substantial less and I would have to pay more.  Meaning I wouldn't cut my personal travel down at all.

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wanderingbuilder didn't say "All" so "Not true" here means "Doesn't apply to me"    It clearly depends on your travel needs, if you want free nights at certain chains without using points and without staying four nights for example, hotel cards can be useful.  But I agree you probably don't need lots....

[Anonymous]

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@redpat wrote:

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@Anonymous wrote:
I still think that aside from not acquiring credit card debt, statements about what someone "should" or "shouldn't" do are just opinion for the most part.

It's a fact that 3 revolving accounts (credit cards) is the minimum ideal for building up that part of a good FICO score but as far as redundant cards, specific number of cards that is "too many" etc that is very much up to each individual situation. You can't really apply blanket statements this way because there isn't any direct negative to say having a dozen cards versus four.

As an example, lots of high income travel hackers easily benefit from having a dozen or more cards for various perks with lounges, hotel and flight upgrades, concierge services, fee reimbursement, car rental insurance, etc

Seems to me that as with most credit discussions, "needing" card X is completely subjective and ESID.

---

Not true, the only cards that I find beneficial for travel perks are Amex Plat and Citi Prestige you don't need to have a dozen cards.  Also, travel cost money and if you want to travel well you have to pay for it.  Therefore, yes you can get many travel benefits and perks but you have to spend a lot anyway.

If I didn't travel for business my travel rewards would be substantial less and I would have to pay more.  Meaning I wouldn't cut my personal travel down at all.

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Just because you don't find it true doesn't mean what I said is untrue. You are not the embodiment of all high income travel hackers.

[Anonymous]

Redemption thresholds are a turn-off I just use my Chase Freedom for everything while I'm in the 5% groceries period. Next month UR's pretty awesome with the extra 1% im using instead of other cards as well. I have not use my Quicksilver to make a purchase in 6 months it's usually just to pay bills.

[redpat]

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@Anonymous wrote:

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@redpat wrote:

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@Anonymous wrote:
I still think that aside from not acquiring credit card debt, statements about what someone "should" or "shouldn't" do are just opinion for the most part.

It's a fact that 3 revolving accounts (credit cards) is the minimum ideal for building up that part of a good FICO score but as far as redundant cards, specific number of cards that is "too many" etc that is very much up to each individual situation. You can't really apply blanket statements this way because there isn't any direct negative to say having a dozen cards versus four.

As an example, lots of high income travel hackers easily benefit from having a dozen or more cards for various perks with lounges, hotel and flight upgrades, concierge services, fee reimbursement, car rental insurance, etc

Seems to me that as with most credit discussions, "needing" card X is completely subjective and ESID.

---

Not true, the only cards that I find beneficial for travel perks are Amex Plat and Citi Prestige you don't need to have a dozen cards.  Also, travel cost money and if you want to travel well you have to pay for it.  Therefore, yes you can get many travel benefits and perks but you have to spend a lot anyway.

If I didn't travel for business my travel rewards would be substantial less and I would have to pay more.  Meaning I wouldn't cut my personal travel down at all.

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Just because you don't find it true doesn't mean what I said is untrue. You are not the embodiment of all high income travel hackers.

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My point was using the word "lots".  The norm isn't these forums for most cardholders, these forums represent a very small population of the total card carrying population. 

The US average for the number of cards an individual has in the US is 3.7 and that is taking out the individuals that don't want credit cards, if you include everyone it's 2.6 cards. (Motley Fool was the source 2014).  

Great discussion.

[Anonymous]

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[Anonymous]

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@redpat wrote:

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My point was using the word "lots".  The norm isn't these forums for most cardholders, these forums represent a very small population of the total card carrying population. 

The US average for the number of cards an individual has in the US is 3.7 and that is taking out the individuals that don't want credit cards, if you include everyone it's 2.6 cards. (Motley Fool was the source 2014).  

Great discussion.

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You are absolutely right, but as I said lots of 'travel hackers'. They do not make up a large percentage of all total cardholders. If I am understanding you now, you were disagreeing based on a different category of credit card holders.

As these forums can attest to, quite a few very high income folks are able to justify many more cards than moderate or lower income - again in some cases simply by leveraging card perks more than spending a large amount on each card. Amex Platinum is a good example as I see many many reports of people who keep that card active simply to utilize the benefits that it entails, and do not put much spending through it because they get better spend rewards from different cards.

[Anonymous]

My "everything else" card is my quicksilver, and for all my other cards I try to spend according to their reward category (gas, dining, supermarket, etc). To answer your question for me it's not necessary at all. I have a couple of cards already and that's more than enough. I honestly can live with just two cards instead of 5/6 cards.