My Rewards cards strategy

Anonymous · ‎06-01-2015

I was in debt so long in my life I never dreamed I'd ever be able to use credit the way I wanted it. When that opportunity happened suddenly a few months ago, I swore I'd close all my CC and just pay everything as it came in with my debit card because I'd never give into temptations to carry a credit card debt again. So, I did close them all down except my Capital One Platinum. I then got obsessed with credit scoring and studied up about other successes. One common thing I was finding out was, don't leave money on the table, utilize it to my benefit since the tables have now turned into my favor.

I slowly started adding cards again. The Discover, Citi Double Cash and my PSECU bank card were the first three, but I got scared and closed the Citi the day it arrived in the mail. I did the same thing with the USAA card. Then the big app spree began in April and I now have a total of 13 cards. I've been trying to utilize all of them at one time, and I'm finding out this is not a good idea, and a set up for failure. I paid each balance in full before the due dates, but I allowed cards to report balances, which I know was a mistake. All these cards makes it difficult to keep track of.

So, last night I brain stormed a new strategy. I'm going to rotate my rewards cards. This month I'll be using my US Bank Cash+, BJs Perks MC (Comenity) and Discover. The US Bank Cash+ will be replaced next month with my Capital One QS, then that will be replaced with my Barclay Rewards in August, the Chase Freedom in Sept. and Discover in October.

The BJs MC and Discover cards will be used monthly because with BJs I get 10 cents off per gal. of gas and Discover will be used for all other purchases throughout the month - food, insurance, etc. Each of the idle cards will not get used for 4 months in between. I will let the Discover card post around $20 each month, but everything else will be posting $0 each month so my usage will show low, even though I'll be spending over $1,500 each month on the 3 cards.

This will make keeping track of these cards a lot easier for me, I will be paying before the Close dates, let a small balance post on Discover, and hopefully my FICO score will also respond and I can reach my goal of 800+ from each CRI.

Anyone see any flaws in this strategy? Is 4 months idle for cards too long? Should I report a small $20 balance each month, or should I report $0 each time? Thanks in advance for your comments to help me out here. I've done a ton of reading up on myFICO since joining the end of April and think I've got this pretty down pat.

Anonymous · ‎06-01-2015

I'll let others say more since I'm on a bouncy school bus in my phone, but four months idle isn't a biggie. And you lucked into the Discover promotion having given up your double cash

Anonymous · ‎06-01-2015

@Anonymous wrote:
I'll let others say more since I'm on a bouncy school bus in my phone, but four months idle isn't a biggie. And you lucked into the Discover promotion having given up your double cash

Ok thanks for the info on the 4 months idle. As for Discover, it really is my favorite card, first with the CLI love and now the new promo. I've got the Citi Double Cash on my list for next year when I drop the cards I really don't use and open up new ones.

Anonymous · ‎06-01-2015

And when discover is no longer 2%

Anonymous · ‎06-01-2015

@Anonymous wrote:
And when discover is no longer 2%

Exactly! Or maybe QS doubles up their 1.5% to 3%

Anonymous · ‎06-01-2015

Since no one else is chiming in, I'm still captive in the bus, and I like strategizing, I'll continue.

I don't get the rotation thing. Unless you're just saying you'll use those for a token purchase only. (C+, QS, BR). My strategy would be to put my cellphone on C+, I think BR is good for other until, (but not sure), and I'd do something token and small on QS. I think I just put TIVO on my QS, and have my cell phone on C+.

Unless you don't want to have to deal with the usage on that many differ t cards in a month. I guess that could be the reason for rotation.

And for score optimization you want one card only reporting a few% only. Not each one. And not all $0.

Anonymous · ‎06-01-2015

@Anonymous wrote:
Since no one else is chiming in, I'm still captive in the bus, and I like strategizing, I'll continue.

I don't get the rotation thing. Unless you're just saying you'll use those for a token purchase only. (C+, QS, BR). My strategy would be to put my cellphone on C+, I think BR is good for other until, (but not sure), and I'd do something token and small on QS. I think I just put TIVO on my QS, and have my cell phone on C+.

Unless you don't want to have to deal with the usage on that many differ t cards in a month. I guess that could be the reason for rotation.

And for score optimization you want one card only reporting a few% only. Not each one. And not all $0.

This is what I'm trying to avoid. I guess I should maybe use the Cash+ for the cell phone bill only and the rest on the "card of the month in rotation". So that would mean I'm dealing with 4 cards total. For me, it was getting too confusing when I would purchase something on all cards then try to figure out when was the best time to pay them off to avoid reporting.

sunkissed · ‎06-01-2015

BTW

I filled up at BJ’s this morning and noticed they’re offering an additional $0.05 off per gallon if you shop in the warehouse before you head over to the pumps for a total of $0.15 off per gallon through July 5th. Apparently the promo started Memorial Day. I wish I had noticed sooner.

Anonymous · ‎06-01-2015

@sunkissed wrote:
BTW
I filled up at BJ’s this morning and noticed they’re offering an additional $0.05 off per gallon if you shop in the warehouse before you head over to the pumps for a total of $0.15 off per gallon through July 5th. Apparently the promo started Memorial Day. I wish I had noticed sooner.

Funny you mention this, as I also was at the local BJs filling up on Sunday night in Lancaster and in the middle of filling up I was like DANG, how did I miss that!! I was actually going to purchase some bananas but was getting close to closing time. So, I will definitely do that next purchase in a couple of weeks. You can't beat the price. I paid $2.59 with the discount and would have been $2.54 if I would have noticed sooner.

Anonymous · ‎06-01-2015

Here's my strategy.

1. Get an app to keep track of everything.

2. Use the card that yields the highest rewards for non-everyday spend. If 2 cards are tied, make a decision based on which card is inactive, close to rewards, or other reasons.

3. Use every card you want to keep active once every 4 months.

4. Split everyday spend amongst all the cards you are considering applying for CLI (or trying to keep a good relationship with). I have a Double Cash, but I think it's worth giving up 1% to increase my chances of CLI on other cards.