Which Rewards Card Is Best?

[credit99]

Hi - I REALLY want to get a Rewards type credit card but don't know which one will be best for my situation.  Here are my specifics:

Already have:

Providan - 15,000

Lockheed CU - 7,500

Circuity City - 4,000 (just applied on Fathers Day in store and was instantly approved - thanks for giving me the courage to apply for this one)

Macys-2,000

Capital One - 3,000

Capital One - 500 (strange they have never increased this)

Kohls - 1,500

GEMB? - 6,000

Note:  I have just opened two new accounts Circuit City and GEMB.

I have high utilization right now (but I am working VERY hard on paying them down) and I had a BK7 back in 2001.  NO lates or collections other than the BK. 

EQ-685, TU-681, EX-655 (have about 4 inquiries on EX)

What card do you suggest for me?  Thanks in advance for any advice!!!!

[aftermath]

With all due respect, and not trying to be mean or anything but, I would hold off on anymore apps for the moment. If you are having difficulty paying down your balances to below 10%, then you shouldn't be applying for more credit.

Wait until you pay those balances down to around or below 10% utilization, then apply. You'll also have a better chance of receiving a higher credit line due to the score increase for bringing your utilization down.

[credit99]

Thanks for your advice.  The amounts I listed below are my credit limits not my balances.  I am carrying high balances on 3 of them though.

[aftermath]

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@credit99 wrote:

Thanks for your advice. The amounts I listed below are my credit limits not my balances. I am carrying high balances on 3 of them though.

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Yeah, just wait it out and work on lowering your overall utilization and let your current new cards age a bit. You would be happily surprised on how much of a score increase you will receive for dropping below 10% utilization. If your balances are really that high and you paid them off, you could possibly see a score increase into the low 700's!

I received over 30 points for paying off 2 credit cards to a 1% utilization and was the deciding factor between a $1000 credit line and a $6000 credit line.

When you are ready to apply for a rewards card, I would highly recommend the Amex Delta Skymiles card. Use it well for 2 months, and you can request a credit line increase of 3x your existing credit line, as well as switching it to an Amex Blue Cash.

The reason I say apply for the Amex Delta is because it is easier to qualify for than the Blue, and you can just product change it over later.

The key to a successful credit reconstruction is patience. I know it's exciting and tempting to apply for more/new cards, but just hold off for a while, and the rewards you receive later down the line will be well worth it.

Message Edited by aftermath on 06-19-2008 08:19 PM

[Anonymous]

Rewards cards can be hard to recommend, because it really depends on the individual, and their spending habits.

One thing you may want to do is call cap one and see if they would add either a points or cash back program onto your card. I've seen this done sucessfully, and it eliminates the need for a new card.

Otherwise, what kind of "reward" are you looking for? Citi cards have the thank you network, which is kind of general purpose rewards. Depending on the card you pick you can go 5x points for gas, etc. Chase Freedom (depending on your credit report) may be useful, as your rewards automatically adjust based on each statement's spending habits.

There are also a lot of straight cash back cards you may look into as well.

[credit99]

Thanks for your advice Aftermath!  I appreciate it

[Anonymous]

For my specific spending situation, which is about $1000-$1500/month, I haven't found a single card out there that can beat the Chase Freedom rewards program.  It is one of the few that don't have a minimum annual spending level before you actually start earning what's quoted.  Amex's blue cash is a great rewards program if you spend upwards of $2000/month.

The only advice I can give is on cash back cards, since that is all that I care for.  I don't travel and prefer just to see the CCs pay me for a change instead of me always paying them.

[Anonymous]

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@Anonymous wrote:

For my specific spending situation, which is about $1000-$1500/month, I haven't found a single card out there that can beat the Chase Freedom rewards program. It is one of the few that don't have a minimum annual spending level before you actually start earning what's quoted. Amex's blue cash is a great rewards program if you spend upwards of $2000/month.

The only advice I can give is on cash back cards, since that is all that I care for. I don't travel and prefer just to see the CCs pay me for a change instead of me always paying them.

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I agree completely. I run about $2500 a month through my Chase Freedom and rack up the cash back like it's going out of style.

In the 4 months I've had it, I've gotten over $100 in cash back, while using the card for 2 months as my every day card.