Should I get another card?

[gh17]

But is waiting really a good idea?  I'm not sure if I fully buy that.

It comes down to, am I gonna try to do this every year once rewards start changing?  Or is this a one tme thing where I apply for a few cards that hopefully will maintain similar rewards structures long term, and then I don't have to apply for anything for a while?

I just feel like it's unlikely the Forward is going to last that long, so why wait until it ends to get another card?

[Anonymous]

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@gh17 wrote:

But is waiting really a good idea?  I'm not sure if I fully buy that.

It comes down to, am I gonna try to do this every year once rewards start changing?  Or is this a one tme thing where I apply for a few cards that hopefully will maintain similar rewards structures long term, and then I don't have to apply for anything for a while?

I just feel like it's unlikely the Forward is going to last that long, so why wait until it ends to get another card?

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OK, so go back a year, and assume you are a very heavy spender on restaurants.  At that point, US Bank Cash Plus is clearly the leader, unlimited 5% on restaurants/fast food.     Even better than the Forward with the unlimited $25 bonus when redeeming $100, so more or less a 6.25% card!   So you get it against the day the Forward changes.

But within a few months, they impose a $2K a quarter cap, reduce the bonus to once per year, and now the card looks much less good.   So the advantage of waiting is that at least you can get a card that at the moment you apply isn't nerfed!  Of course, it can get nerfed soon after, but that is always the risk.

I had definitely planned to get two specific cards this year, but then a better one became available so I don't need them at all.  New offers and downgrades happen all the time, which is why I suggest waiting until needed.   Yes, if the Forward stops, you might have two or so weeks without a high bonus, but you will be able to apply for the best card then available.

But again, if there is a card that looks good, then apply.

[gh17]

My concern isn't so much the two weeks without a high bonus.  The concern is that long-term, I do want a card with restaurant rewards, and it would hurt my average age of accounts more to apply for it three years from now than it would to apply today, if that makes sense.

My second concern is that even if the Forward lasts forever, I feel like I'd rather have more than three "old" cards.  If I assume than 10+ years from now, my spending habits have changed and I want/need an additional card, it would be much better to balance that out with five 10+ year old cards than with three.

Obviously overanalyzing.

Not gonna do anything on a whim, but I'll probably give it a week or so to think about.  I feel like one or two rotating catagory cards could be helpful in general.

[Anonymous]

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@gh17 wrote:

My concern isn't so much the two weeks without a high bonus.  The concern is that long-term, I do want a card with restaurant rewards, and it would hurt my average age of accounts more to apply for it three years from now than it would to apply today, if that makes sense.

My second concern is that even if the Forward lasts forever, I feel like I'd rather have more than three "old" cards.  If I assume than 10+ years from now, my spending habits have changed and I want/need an additional card, it would be much better to balance that out with five 10+ year old cards than with three.

Obviously overanalyzing.

Not gonna do anything on a whim, but I'll probably give it a week or so to think about.  I feel like one or two rotating catagory cards could be helpful in general.

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OK, if that is your concern, get any card now to protect AAoA.  My point is that a card you get now may not have restaurant rewards at the point you need it (if Forward nerfs existing users) but for AAoA purposes getting a card (or several cards as the same argument applies) makes sense.

[parakleet]

I think you're over-focusing on the importance of aaoa. It's important but not the only important thing in a credit profile. You also don't have a guarantee that whatever card that you have now is going to remain the exactly the same way indefinitely. I would recommend checking out the cards mentioned in the reaturant thread and see if there's anything tht strikes your fancy. If not, it's not realistic to think that you can get a card now that you won't have to get in the future so that you'll be set with all your rewards. The nature of rewards cards is that they change. Who knows what new cards are in the future?

Also, amex has revolving cards as we'll as charge cards - the BCP is excellent for grocery stores and gas but I know that you said that you don't spend a lot on groceries. Just FYI. 

[Revelate]

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@gh17 wrote:

But is waiting really a good idea?  I'm not sure if I fully buy that.

It comes down to, am I gonna try to do this every year once rewards start changing?  Or is this a one tme thing where I apply for a few cards that hopefully will maintain similar rewards structures long term, and then I don't have to apply for anything for a while?

I just feel like it's unlikely the Forward is going to last that long, so why wait until it ends to get another card?

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How likely is it that you're going to be chasing a mortgage as a spur of the moment decision?

I'm a big proponent if you want a card, and can qualify for it, and don't have a mortgage in the next year, just go out and get it; however, I'm struggling with justification in this case based on what a lender might do.  

If Citi whacks the reward package (and you're right, they might, though they're more likely just to institute a cap based on other lenders' actions) I'd address it then.  A Cash+ for restaurants seems like a waste right now when you are still grandfathered in: I don't know that you can change categories after selection (unlike the Huntington Voice).

Actually, if you're looking for a rewards defence card, the HV might be worth at least looking into as when I took a gander you can switch it around: it's not 5% but 3% > 0, and until Citi changes the Forward, it's not a wasted tradeline if it can cover another gap in your rewards lineup.  Utilities or whatever which is cumbersome.  Beyond that, having any Amex in your history isn't a bad idea as someone suggested for having a MSD for the future, but that could change at any time too.

End of the day, rewards packages are either here to stay, or they're going to vanish completely overnight, and personally if I had a Forward (kicking myself for not getting one back in the day, only card I have regrets about not acquiring when people rightly recommended it to me) I'd simply use it until they took it away from me.  We're talking a small gap in rewards coverage; however, if when you get to the point of thinking mortgage six months or a year out in your life, and you're making the last gasp before the garden app spree, then if you want to pick up a restaurant specific card in defense of Citi's going AWOL, that'd be the time to do it.

Better to get a tradeline you'd actually use in some fashion if you're going to app, and the Cash+ is too good to squander in such a manner in my estimation.

[amakol]

You're overanalyzing this a bit OP.

If you're familiar with sports, I'd equate credit cards with player contracts. It's comforting to think you're locking things down for 6-7 years at a time and your job is done but things always change year-to-year and you're always updating. Players you think are great can decline, and others come out of nowhere to surprise you. It's not realistic to anticipate specific things many years into the future.

I agree with Revelate (as you can see in my sig). If a card can help you, you can qualify for it and be happy with the anticipated CL / APR (if needed) and you don't have a mortgage or car loan in the near future (6-12 months) just go for it. The extra history and lower utilization are almost always useful side perks and the inquiry will be forgotten by 2016. If it's not useful, I'd hold out for something that is. Only you know what's best for your lifestyle.

[Anonymous]

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@Revelate wrote:

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  A Cash+ for restaurants seems like a waste right now when you are still grandfathered in: I don't know that you can change categories after selection (unlike the Huntington Voice).

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Just for information: you can select new cash plus categories (the two 5% and the 2%) every quarter, so really the same flexibility as HV.  OP could go for it now, use the categories for whatever and move to restaurants if/when Citi kills the Forward.

[Revelate]

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@Anonymous wrote:

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@Revelate wrote:

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  A Cash+ for restaurants seems like a waste right now when you are still grandfathered in: I don't know that you can change categories after selection (unlike the Huntington Voice).

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Just for information: you can select new cash plus categories (the two 5% and the 2%) every quarter, so really the same flexibility as HV.  OP could go for it now, use the categories for whatever and move to restaurants if/when Citi kills the Forward.

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That is good to know; by all means then if you can qualify OP, go snag a Cash+ anyway .  Actually by my own analysis I may try to go do that in a year or whatever.

Thanks!

[celluloid17]

The Cash + would be a good card for you only if you opt for it being just a general eating out card, which means that you want to use up your two 5% categories on Restuarants and Fast Food (they're two separate categories, which is kind of annoying).  I have a Cash + card and I use it for 5% off cell phone bill, 5% off fast food and 2% off drug stores.  I've encountered some issues where I thought I was getting 5% back on "fast food", but because the Visa merchant codes distinguish between restaurants and fast food establishments, you can never be certain what the restaurant proprietors have decided to code themselves as (and it's not always what you think it would be!).  This is where a phone app like Wallaby comes in handy that tells you which card to use where.