Put spend on capital one or discover it?

[Anonymous]

I agree with the advice to put a small recurring charge like Netflix on the CapOne. Set it to autopay so that it's never late, but if you can remember to pay it off manually before the statement cuts, that's good for your utilization. Use the Disco for everything else, and pay it off as needed to keep its balance low and to have it below 30% (or less, ideally) when the statement cuts. 

I have found that my Discover It is a very valuable card, even after having it for a year and being out of the cashback match period. They routinely offer balance transfer deals with either 0% for 11 months with a 3% transfer fee or 4.99% for 18 months with no transfer fee. They'll deposit cash directly into your checking account for you to use however you need it for this offer. I've used it twice for big expenses that came up and I wasn't able to pay in full at the time. I usually have it paid off long before the term ends, but it's nice to have that breathing room just in case I hit a rough patch. I normally don't suggest spending money you don't have, but stuff happens (medical bills, car repair, veterinary expenses, etc) that can deplete your savings pretty quickly, and it's nice having Discover's BT "loans" as an option. 

The point of all of this...it's smart to have a solid relationship with Discover. 

[Anonymous]

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@rprisco wrote:


I tend to be loyal no matter what, same cell carrier since 1996, same car insurance, same bank/cu. I am loyal until I dont feel the relationship is mutual.

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OT but I recently found out (and then saw it in articles everywhere) that if you maintain the same insurer you get bad rates (part of their pricing, as they don't need to be so competitive with you!).   I switched after about 30 years and went from $2600 to $700, which may or may not be extreme.  (In my defense, MA used to have fixed prices for insurance from all carriers so I didn't think it mattered.  Then I found out that changed many years ago!)

I would also be less loyal to banks/CUs, or at least diversify.   In the online space, there is a lot of competition.

[KLEXH25]

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@Anonymous wrote:

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@rprisco wrote:


I tend to be loyal no matter what, same cell carrier since 1996, same car insurance, same bank/cu. I am loyal until I dont feel the relationship is mutual.

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OT but I recently found out (and then saw it in articles everywhere) that if you maintain the same insurer you get bad rates (part of their pricing, as they don't need to be so competitive with you!).   I switched after about 30 years and went from $2600 to $700, which may or may not be extreme.  (In my defense, MA used to have fixed prices for insurance from all carriers so I didn't think it mattered.  Then I found out that changed many years ago!)

I would also be less loyal to banks/CUs, or at least diversify.   In the online space, there is a lot of competition.

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@Very good advice @Anonymous. I recently learned this the hard way too. I have a tendency of staying with the same companies I start with for a long time, partially out of loyalty, but also convenience / laziness. Didn't realize this means I've been overpaying on everything! Companies don't seem to value their longtime customers, just new customers. This goes for cable, insurance, phones, banks....I've finally started to shop around and surprised to see how much better it really can get.

[Anonymous]

I would put most of your spend on the Discover. Cap One buckets their cards no matter what kind of spend you run through them.

[Shooting-For-800]

Both are good companies.

Although that Cap One card may not grow, it does not mean your relationship with Cap One won't grow.

I have had some Cap One cards that would not grow, I have had some that did grow, and I have some now I am afraid to grow.  LOL

I would split usage with more favoring Discover.  

Discover may not "bucket" you as much.  Cap One "buckets" but still offers additional credit at better terms through additional new cards.

Cap One was the first to show me love when I started rebuilding my credit.  I went from a single $3,000 card to three cards with $80k+ available within 4 years.  During that 4 years they paid me around $6,000 to use their cards.  I never paid a penny of interest.  Cap One offers me 0% for 18 months for 2% fee, I can write myself a check and deposit it in the bank.  Then I can use their cards to buy everything getting between 2%-4% back in rewards!  

Discover paid me $800 this year to use their card and gave me 14 months 0% when I opened the card.  They gave me 4 CLIs in a year totalling $9,000.  Then, they gave me another card for $7,500 with another 0% for 14 months offer and also double rewards for the next 12 months!

Both banks have pros and cons.  It is good to have both on your side.   

GL!