Setting your 2021 Card Strategy

[simplynoir]

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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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Just so I'm sure I understand this correctly since it sounds like a good rule to have for yourself. This applies only to the spend for that card's purposes and not overall spend, correct? An example is if you have $3k total spend per month and $1k goes to your Citi DC card the rule barely qualifies since it keeps under the 10% utilization threshold you've set for yourself

[Andypanda]

I often impulse app for cc. As long as inkepp my scores above 740 I'm happy. My house is paid off, and my card is new enough, that unless something major happens, i do not plan on getting a new car any time soon ( and i am in tge situation i cam always pay cash.)  unless a new unicorn card comes out, or a great sub, i do not plan on apping for anything soon, since inhave all the cards i wantvfor the moments. Chase cards don't have much intrest for me, but i might get the chase flex when i get  below 5/24 (currently at 11/24).

[wasCB14]

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@Kforce wrote:

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When I first went for reward cards, I found a couple that gave me the highest rewards on my real everyday spend by analyzing 6 months history.  Have only went for new cards when a card was "Nerfed" (SalieMae)  .or. passed my "New Card Rule" .

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

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I'd take a $500 SUB now over the hope that a card won't be nerfed for 50 months.

No big changes here...MRs, a little cash back, and maybe another SUB or two.

[TheFIGuy]

@wasCB14 MR squad!

[TSlop]

Hmmm, for 2021, I plan on opening at least one card: the Freedom Flex. I do not have a MasterCard, and I would like to snag another 20k URs and get some phone insurance. After that, I'm debating opening up a second hotel card. I would like to have one that offers a free night every year, which the Hilton doesn't (unless you spend $15k on it per year). As the year goes by I'll also be watching out for Amex to give me an upgrade offer to the Surpass. I'd love another 100k points without a new account.

Beyond that, I'll probably try and stay in the garden for a while. I don't really "need" any other cards, so anything that gets opened would most likely be solely for a SUB. I want to always stay under 5/24, so I'll only open a maximum of 2 cards per year.

[CreditCuriosity]

I will opt of of this topic and no strategy other than if a lender I don't have then game on.  I really didnt get alot of cards this year compared to others although still a decent amount, but cv-19 put lenders alot more conservative.  Now that a vaccine is on the horizon, be interesting to see how lenders react next years as people start to live a normal life again.

[newmomnewme]

Great topic @Aim_High  I was ignoring my credit 2016-19 (carrying high balances, ignoring interest, and missing a few payments) I wasn't applying for anything because my scores were scrapped! 

Fast Forward to March 2020 - COVID and historically low mortgage rates, I wandered back to the forums to see what it would take to purchase a home this year (silly me) I pulled my 3B and 🤮🤯🤮🤯!  I got pre-approved and thankfully I couldn't find a home I wanted to purchase....if I had, I'd be setting myself up for failure. 

I came up with a pay down plan and paid down 75% of my revolving debt and got back in with Navy! I should have stopped there but NOOO. Instead of applying for 1 card every 6 months, I added 6 new accounts in one month!!!!! Honestly, I didn't even stop until AFTER the 3rd denial (courtesy of WF, Chase, PNC). 

So, here I am 9 days from my 3rd full statement with Navy planning to hold off on the 2nd card and go for the SP CLI for now. 

2021 Plan - 

1. Let these INQ (EQ-4, TU-2, EX-6) and new accounts age; they will be 12 months old October 2021. 
2. Pay off my BT deals (0% and 2.9%)

3. Continue banking promos (ease the app itch and possibly start relationship with good mortage lender)

4. Apply for mortgage loans after MMS hits 740

5. Continue monthly, quarterly, SP CLI requests on current cards

6. Apply for 2nd Navy Card AFTER my house keys are in hand. 

Whew! I got work to do...But I'm about 10% there, been in the garden for 2+ months hanging with my better angels. If I could just stay away from the approvals board 🤫. 

[Kforce]

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@wasCB14 wrote:

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@Kforce wrote:
When I first went for reward cards, I found a couple that gave me the highest rewards on my real everyday spend by analyzing 6 months history.  Have only went for new cards when a card was "Nerfed" (SalieMae)  .or. passed my "New Card Rule" .

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

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I'd take a $500 SUB now over the hope that a card won't be nerfed for 50 months.

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For us cashback folks, $500 subs are non existent.

Show me a non travel  $500 "Sub", and I will go for it.   

[Anonymous]

@newmomnewme we had a pretty similar 2016-2019 xD

But yeah, when COVID hit, questions of maintaining a steady income (whether by choice or not... continuing to work in pandemic conditions has amplified some of the usual job-related stressors, to say the least) started looming in my mind. So the past few months I took some drastic measures to get my finances back in line and get my credit healthy again.

Now, I will admit, having a clean report does have me eyeing a couple cards... haven't applied for a credit card in 3 years, and there are some shiny ones that currently have my attention 

But, uhh, whether or not those come through for me (hopefully will find out here in the next couple weeks!! Just need ONE MORE paid down balance to report before I pull the trigger!) my main focus is to rebuild some good financial habits. The cards I want have some nice cash back bonuses, but I've still got an okay set up in the event things don't go as well as I'd like.

Mainly want get back into the habit of paying in full again, maxing out my Roth IRA, and enjoying not having a monthly car payment for the first time in 5 years! Oh, and if a nice SUB pops up and the timing's right, it might be time to get a new mattress 

[kdm31091]

I think for the most part we've reached the peak of what issuers can/will do in terms of rewards and we will probably see more partnerships/merchant specific credits, for AF cards, that tend to cause forced spend and result in less overall value for the customers. No AF / cash back cards are only going to go so high with rewards, and I agree with not spreading too thin.

So, no real apps planned unless something that proves me wrong comes along.