@Brian_Earl_Spilner+100
When you use a credit line, you establish a pattern of use that the creditor keeps track of. People complain about balance chasing and CLDs, but what was the trigger? If you were doing AZEO for 6 years and carrying a zero balance for 6 years, then all of a sudden decided you want to make a large purchase and carry a balance for a few months, that's going to raise red flags. Normal people (ones that aren't credit savvy and micromanage) rarely have that issue because they almost always carry balances.
As for the golden ticket comment, it really is a golden ticket, you've just worn it out by applying for more credit than you need. I'm sure the only other time you would be denied would be if you maxed out all your existing credit. Both scenarios are understandable for why you would be denied. On one hand you don't need it, on the other hand, you've abused what you have.
I always carry a balance due to some 0% promo. Just wrote myself a check for $20k from Cap One at 0% for 18 months. Cost me 2% and I get at least 2% back when I use my credit cards. FREE MONEY!
I like seeing previous high balance numbers on my report. It shows I can handle and pay off debt.
example: $30,000 limit, $20,000 high balance, $897 current balance.
@longtimelurker wrote:
@Shooting-For-800 wrote:
carry a balance due to some 0% promo. Just wrote myself a check for $20k from Cap One at 0% for 18 months. Cost me 2% and I get at least 2% back when I use my credit cards. FREE MONEY!
.
Don't understand this. You pay 2% fee for the check, right? How does the cc rewards come in to it, you would get those whether or not you got the check? Now I'm not saying 18 months for 2% is bad, but you have to get enough return to make up for the fee to make it FREE MONEY", which you can easily do even in a HYSA. Just the comment about the cc confuses me.
IMHO 0% promos are only worth it if BT fees are also $0, or the ROI on the money you're BTing is greater than whatever %BT fees they're charging.
@longtimelurker wrote:
@Shooting-For-800 wrote:
carry a balance due to some 0% promo. Just wrote myself a check for $20k from Cap One at 0% for 18 months. Cost me 2% and I get at least 2% back when I use my credit cards. FREE MONEY!
.
Don't understand this. You pay 2% fee for the check, right? How does the cc rewards come in to it, you would get those whether or not you got the check? Now I'm not saying 18 months for 2% is bad, but you have to get enough return to make up for the fee to make it FREE MONEY", which you can easily do even in a HYSA. Just the comment about the cc confuses me.
I pay 2% and put the money in the bank. I can then use that money for investing, credit card purchases with cash back, etc. Yes, I would get the same cc rewards assuming I could always PIF.
Obviously, 2% fee for 0% for 18 months is well under 2% apr. It does not take long to make that work in your favor. This $20k is going towards updating my home. I consider that a long term investment.
There are CDs that pay more than 2%. Free money.