Setting your 2021 Card Strategy

[B_Slow1]

I'm probably a bit newer to the credit card hobby than most of you. After getting several credit cards shortly after starting college, and getting into financial trouble almost immediately (full-time student + no job + 4 credit cards = Bad), I pretty much swore off credit cards for the next 15 years. I finally jumped back in in 2017, and --very cautiously-- have applied for 1 card per year since. That wasn't a conscious decision, by the way; that's just how it worked out.

My plan for 2021 is to go crazy, and maybe apply for TWO credit cards: 

 - Amex Gold (hoping that the elevated SUB sticks around for a couple more months)

 - Ink Unlimited to assist with my business expenses

[Rudy1]

In 2020 my goal was to expand my portfolio of cards. My goals for 2021 are to payoff my Home Equity Loan. Pay all my credit card down to $0 expect one. I also have a goal of getting rid of credit one and hopefully the getting my Citi Secured card unsecured. One other goal is to take more advantage over my discover quarterly 5% categories this year. I would also really like to try for a Amex Blue or Everday card but that would happen later in the year and I would also want all my accounts down to $0 before I do that.

My current daily drivers are:

Delta Amex Gold

Capital One Walmart

Discover IT

Comenity Mastercard

"Target RedCard" for target only!

[quikj9]

2021 has promise. I'm looking forward to it. My Discover should unsecure in Jan and I'm gardening until at least April. I need to continue to age my reports, allow a couple of inquiries to fall off and see if I can finish my rebuild a little early. 

My CC plan can take two different paths:

1) If I'm able to get my only collection (already paid) removed from my reports, I'd really like to get my hands on my first Chase card, specifically the Freedom Flex. Towards the end of next year, it would be ideal to add a UR business card. 

2) If my collection remains, I'll probably try for the SECU MD Visa Signature or a card from CCU.

[Anonymous]

2020 was basically a drunken fiesta when it comes to my credit. (I forget who here coined that term! LOL)

I bought a house, a new (used) car, got two new credit cards, and took out a personal loan for $20k that will basically just sit in my account because I couldn't resist signing the check that came in the mail. (The interest rate is decent and I didn't like sitting on low reserves in a pandemic with everything I just committed to.)

2021 will be about not getting any new credit and going into econo mode after all of the heavy spending this year.

[recoveringfrombk7]

My only plan for 2021 is Navy's FS.  I'm celebrating my 2 years post-dischage of BK7 this month.  So my plans are just FS in March (whenever the SUB hits) and that would lead to a PC of my Cash Rewards to the Platinum.  I guess longterm I'd like to merge my 2 Discovers.   I'll also be getting a car loan, probably circa Memorial Day.  I'd love a CLI/Target MC upgrade, but I burned them for about 2500, so I'm really just glad to have anything with them at all.

My plan is then to garden until AMEX becomes available.  I'd like to move from cash back to points because travel benefits are more important to me, but I burned Chase (~15k) and to a lesser degree Citi (4k, I think?), and really I feel like that just leaves AMEX as a system for me.  Slightly bummed because our closest airport is United (EWR), but we are close enough to the JFK, PHL, and LGA to use those if there is a compelling reason to do so, and really not like I can blame anyone but myself.

[Anonymous]

Welp, seems some quirks in reporting timeline have me postponing apps for a bit longer 😮

I paid down all of my current cards last month. I also changed the statement closing date on some of them, which caused extended cycles and thus a longer wait on those cards reporting to bureaus. Was able to request off cycle reports on some, so now I have almost all cards report at or close to zero (some had some trailing interest).

I'm down to one more card that has yet to report. Tried requesting a mid-cycle report but no dice. It last reported on October 19th, so I had thought that even with the extended cycle, the balance would at least be updating soon. Called the company to learn that I should expect the next update around January 7th... 😓

Ah well, I will just need to be more patient. At least I have a few weeks to get a perfect AZEO before applying for my next cards. Can't imagine those few extra points being a deal breaker, but I've got my eyes on AOD and Altitude Go, so I'll take all the help I can get!! But if these two work out, think I'll be pretty set with my lineup for a good while.

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[FalconSteve]

Barring any new cards coming out that really strike my fancy, I'm plannign to garden in 2021.

My wife and I are over 5/24, so no Chase Freedom for their 5%

AOD would only approve me for less than the 5k needed for Signature needed for 3% cashback

My wife has a Discover IT for their 5%

We have a Citi Double Cash for 2% everyday

We have a Wells Fargo Propel for travel if that ever resumes

We have a REDcard for 5% at Target

We don't need a Lowe's Charge until after we buy our first house (hopefully in the next year or MAYBE two)

I can't bring myself to ever pay an annual fee. The only thing I don't have covered (not that it matters right now) is a no foreign transaction fee card that is VISA or MasterCard (all Discover are No FTF and I believe my Propel is), but I have an AppleCard pending ID verification now.

[FalconSteve]

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@AndySoCal wrote:

Right now I am planning not to apply for any new credit cards. I am also not planning to apply for any credit Limit increases either.

My own rule for a credit limit increase is redit utilization on the card  greater than 10% of credit limit month over month.   With my spend and my credit limits none my cards qualify for a credit limit increase consideration.

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I understand why you wouldn't request any HP CLI, but what is the reason for not requesting SP CLI?

[FalconSteve]

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@Kforce wrote:

(New Card Rule } //  New card only if reward value > $10 a month over current card set.

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That's a really good way to look at it. I don't know if I would use $10/m personally, but it is definitely a good way of looking at it.

[AndySoCal]

@FalconSteve 

First my average util each month is around 4%. I see no benefit to asking for a CLI either hard or soft.  If my util goes down another precent or two I doubt if I would gain a point on my FICO score. There is nothing in the FICO score that gives points just because of the credit limit. The credit limit is used only for credit utilization. Some credit card companies want a 5K credit limit to qualify for the card. With my scores I doubt if I would be declined for something due to my credit.