Budgeting with New Cards

[Anonymous]

Just recently received a couple brand new credit cards that I'd like to keep over the long run. I'm trying to switch to using credit cards on a regular basis in order to:

1.) Gain cashback rewards

2.) Increase the credit limit on my Ring card to match the Quicksilver

3.) Improve credit score

I also have an existing Chase Amazon Rewards card, but I hardly ever use it and it has a low credit limit that likely won't change.

With that said, I've set all the cards to autopay everything monthly and set the following recurring monthly charges as follows:

Rent, student loans, and my electric bill remain paid directly from checking account

Internet, car insurance and church giving on Quicksilver ($550/mo)

Netflix & cell phone bill on Ring ($45/mo)

I also am trying to use the Quicksilver for most/all of the time when I previously used my bank debit card, such as for groceries & gasoline ($320/mo)

That would put my monthly Quicksilver utilization at 8.7%, my monthly Ring utilization at 1.8%, and my monthly Amazon utilization at 0%. The Quicksilver has 1.5% cashback on everything, the Ring has no cashback, and the Amazon card has 3% cashback on Amazon purchases. Does my strategy seem sound for meeting the goals I listed? Any comments or suggestions welcome.

EDIT after 2011XTERROR's suggestion: moved Ring purchases to Quicksilver to maximize rewards. So that puts Quicksilver at approx. 9.2% utilization per month, with the other 2 cards at zero. 

[Anonymous]

i wouldn't use the ring for purchases as there are no rewards. there isn't a whole lot of reasons for a high CL on the ring

[Anonymous]

Thanks!  I changed the Ring purchases to the Quicksilver, so now everything I can pay with a credit card gets rewards. 

[Appleman]

Sorry, re-read your post. * Take the advice below in 6 months to a year. With three new cards you can let those age for awhile.

Remember you can pay off your credit card prior to the statement being cut. You still gain the rewards and keep the utilization low. (Most will say one card reporting <10% of the CL eash month)

Your scores are great. Without knowing your entire credit profile have you considered a Synchrony product? For instance the Amazon Prime store card can easily be grown, with many members growing their CLs to $25,000. And they give you 5% back on purchases or extended zero % financing.

Another option would be to add AMEX to your mix. At 91 days you try the 3X CLI and hopefully triple your CL.

Have you also looked into the PenFed CU? With one Equifax pull you can apply for multiple credit products (for instance credit card and PLOC).

Obviously apply for what makes sense for you, with the current scores I imagine you have some choices. 

[Anonymous]

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@Appleman wrote:

Sorry, re-read your post. * Take the advice below in 6 months to a year. With three new cards you can let those age for awhile.

Remember you can pay off your credit card prior to the statement being cut. You still gain the rewards and keep the utilization low. (Most will say one card reporting <10% of the CL eash month)

Your scores are great. Without knowing your entire credit profile have you considered a Synchrony product? For instance the Amazon Prime store card can easily be grown, with many members growing their CLs to $25,000. And they give you 5% back on purchases or extended zero % financing.

Another option would be to add AMEX to your mix. At 91 days you try the 3X CLI and hopefully triple your CL.

Have you also looked into the PenFed CU? With one Equifax pull you can apply for multiple credit products (for instance credit card and PLOC).

Obviously apply for what makes sense for you, with the current scores I imagine you have some choices. 

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Thank you!

Two of the cards are new. I've had the Chase Amazon Rewards for 8 years or so. I only use it for Amazon purchases, and I don't buy a ton of stuff on it, which (along with people's stated experiences here) makes me think it's going to stay at its limit for the duration. Since I don't buy that much on Amazon, I don't see a need for the Synchrony Amazon store card. 

I have looked at American Express and PenFed as potential future options. There's a possibility I could apply for the Amex Blue Cash Preferred or PenFed Platinum Rewards Visa Signature after a suitable waiting period, depending on which card works better for my spending habits. 

At the moment, I'm still trying to get used to regularly using credit cards instead of debit cards for my routine spending. If I can get myself in that habit and the autopay feature works correctly for the cards I'm using, then I'll take the next step when I come to it.