Opening a CC for a single large purchase?

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

his credit score is in the high 600s, he doesn't do it frequently but that's not the point

---

Any baddies to speak of?

---

on his credit report? 'no not that I know of

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

his credit score is in the high 600s, he doesn't do it frequently but that's not the point

---

Any baddies to speak of?

---

on his credit report? 'no not that I know of

---

Could be high DTI and or utilization then.

[longtimelurker]

---

@MarineVietVet wrote:

---

@Anonymous wrote:

My reply to this is why the heck would you open a card for $50 rewards?

I do a moderate amount of bonus churning, but when i do, I usually sign up for something that will give me at least $500 for the effort. It seems like your dad would have been much better off opening a chase southwest, citi addvantage etc, put the tires on it to meet minimum spend and then close it if they really want to do that (not that they should do that, but if they wanted to do that...). Trading a new a new account for $50 seems like a bad deal 

---

Because that person is not as educated as they should be about how credit actually works. Not ignorant; just uninformed.

I was the same way for most of my life; heck I still make financial mistakes.

---

And also depends on mindset.   In this case, the question: do I want $50 of this purchase?   If people really aren't into ccs they way most here are, questions like "Could I open another credit card to get a bigger bonus?" just don't occur (and wouldn't really be timely) any more than "I could set up a lemonade stand (or a meth lab) and get the money for the tires that way"

So he opens that card, gets $50 off and is happy.   If he doesn't need serious credit any time soon, the HP hardly matters.

[Anonymous]

---

@longtimelurker wrote:

---

@MarineVietVet wrote:

---

@Anonymous wrote:

My reply to this is why the heck would you open a card for $50 rewards?

I do a moderate amount of bonus churning, but when i do, I usually sign up for something that will give me at least $500 for the effort. It seems like your dad would have been much better off opening a chase southwest, citi addvantage etc, put the tires on it to meet minimum spend and then close it if they really want to do that (not that they should do that, but if they wanted to do that...). Trading a new a new account for $50 seems like a bad deal 

---

Because that person is not as educated as they should be about how credit actually works. Not ignorant; just uninformed.

I was the same way for most of my life; heck I still make financial mistakes.

---

And also depends on mindset.   In this case, the question: do I want $50 of this purchase?   If people really aren't into ccs they way most here are, questions like "Could I open another credit card to get a bigger bonus?" just don't occur (and wouldn't really be timely) any more than "I could set up a lemonade stand (or a meth lab) and get the money for the tires that way"

So he opens that card, gets $50 off and is happy.   If he doesn't need serious credit any time soon, the HP hardly matters.

---

considering he is planning on retiring in 2 years...moving and buying a new house, I would say he should be taking his credit seriously. Not saying he doesn't, but like someone mentioned before he is just misinformed 

[NRB525]

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

his credit score is in the high 600s, he doesn't do it frequently but that's not the point

---

Any baddies to speak of?

---

on his credit report? 'no not that I know of

---

Could be high DTI and or utilization then.

---

Ok, so it should be over 700 if standard "I don't really care" is working for DD. I would suggest this might happen often, but yeah, utilization is likely an issue as well.

OP: you are on the right track to subtly try to help DD to understand actions that are causing potential credit drags. It's a difficult subject to impose on anyone, however. 

[Anonymous]

---

@NRB525 wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

his credit score is in the high 600s, he doesn't do it frequently but that's not the point

---

Any baddies to speak of?

---

on his credit report? 'no not that I know of

---

Could be high DTI and or utilization then.

---

Ok, so it should be over 700 if standard "I don't really care" is working for DD. I would suggest this might happen often, but yeah, utilization is likely an issue as well.

OP: you are on the right track to subtly try to help DD to understand actions that are causing potential credit drags. It's a difficult subject to impose on anyone, however. 

---

It's easy to maintain just below 700's FICOs by being financially stable but not really caring about HP's or UTL.

[NRB525]

---

@Anonymous wrote:

---

@NRB525 wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

---

@Anonymous wrote:

his credit score is in the high 600s, he doesn't do it frequently but that's not the point

---

Any baddies to speak of?

---

on his credit report? 'no not that I know of

---

Could be high DTI and or utilization then.

---

Ok, so it should be over 700 if standard "I don't really care" is working for DD. I would suggest this might happen often, but yeah, utilization is likely an issue as well.

OP: you are on the right track to subtly try to help DD to understand actions that are causing potential credit drags. It's a difficult subject to impose on anyone, however. 

---

It's easy to maintain just below 700's FICOs by being financially stable but not really caring about HP's or UTL.

---

Yes, simple "never missed a payment" can bouy the score in spite of my high utilization and recent apping.

[lee645]

I know this forum focuses on scores, that's fine. My opinion is $50 is a nice chunk of change just for being approved. Depending on the price of the tire/s this could amount to a huge discount, much higher than using a 2% card. What good is a good credit score if it can't save you money? I suspect he has a fairly strong profile if he does this often (closed accounts still add to AAoA for 10 years) closing the account then in 2-3 years when it's tire time again get another discount to repeat..

Personally I don't see the issue unless not paid off by end of promo period in which case you end up losing any gains to interest charges which store cards usually has a high rate and backdated to date of purchase.

[Anonymous]

---

@lee645 wrote:

I know this forum focuses on scores, that's fine. My opinion is $50 is a nice chunk of change just for being approved. Depending on the price of the tire/s this could amount to a huge discount, much higher than using a 2% card. What good is a good credit score if it can't save you money? I suspect he has a fairly strong profile if he does this often (closed accounts still add to AAoA for 10 years) closing the account then in 2-3 years when it's tire time again get another discount to repeat..

Personally I don't see the issue unless not paid off by end of promo period in which case you end up losing any gains to interest charges which store cards usually has a high rate and backdated to date of purchase.

---

Basically I agree with this and LTL's comment.  For the average Joe Schmoe, depending on their particular situation, it's a legitimate enough way to use your credit  You save a chunk of change and you dont really feel or notice the impact one iota in your life.

 I think the problem would be him going for a home loan, which his son mentioned, and then these kinds of things could really come back to haunt him.  It would be horrible to lose thousands of dollars with an inferior interest rate because for the past few years he'd been doing the $50 pop, open and close shop trick.  In that case it's really bad, but I'm sure in a lot of situations it doesn't really hurt at all.

[Chris679]

OP I think your question has been answered, this is not beneficial for the credit score.

I agree with others though that if you have a really thick file and the new account won't effect you much I would not hesitate to do it. 800 score? Have at it. 700 score? Not so much.