Application credit cards

[Nick87]

Just curious what everyone is doing for credit cards. Two years ago I opened a credit card with 0%for the first 24 months. So I'm out of zero percent now. Just got something in the mail the other day for another one. I'll be applying in more draws than ever before this year. What are you guys doing? I'm mot sure how opening a new card every year or two effects your credit exactly? Sure is is a lot simpler to put the apps on one card like that and not pay it off until after the refunds.

 

[TOGIE]

yeah, nice to be able to float it until after refunds if you get refunds.

but, not worth the hassle to me to open credit cards just for more 0 APR promos for that though IMO.

i just use my fidelity card for everything and pay it all off on the next statement. the time value of money cost for the spread in time between basically every app and draw is negligible if you ask me.

in general folks probably shouldn't put in if they can't front the cash as if it's spent.

 

[seeth07]

We switched to Amazon about 2 years ago and it has been by far the best benefit you can get if you order non stop for everything from there.

The main benefit for Amazon we have found is they don't take back your bonus earned on refunds. When we had the Cabelas card, we found that with application season we would earn bonus points on the draw apps and then regardless if we spent them or not, when the refund came back to the card, they would remove the bonus points. This does not happen with Amazon. So for example, the application cost was $1000 and with 2% you earned $20 in Amazon credit. 3 months later, you get that $1000 refunded and regardless if you spent that $20 or not, it remains. With Cabelas, we would see a -$20 posted on the bonus points at the same time as the refund of $1000.

 

[brymoore]

Basic credit card knowledge is to leave the old cards in place and find a new card if you wish to have another.

Credit scores are based on the amount of CC credit available and length of credit. Churning cards doesn’t help your credit score. However, paying money for a card would cause me to consider canceling it.

I’m old enough I just pay cash for my apps. I used to play the CC games.

 

[TOGIE]

The main benefit for Amazon we have found is they don't take back your bonus earned on refunds.

i've wondered if this happens on my card but have never actually paid enough attention to see it is what happens with apps.

maybe the only reason i would switch cards.

i can't imagine many cards don't apply negative rewards to refunded balances though. pretty brutal hack to the system if not.

 

[Nick87]

in general folks probably shouldn't put in if they can't front the cash as if it's spent

I totally agree I'd rather not have to use the credit card at all. I used to do the same but we don't really use our credit cards anymore except for gas and things like tag apps since you can't really use a debit card for that. So when I pay it off at the statement I end up getting a pretty good size statement credit for a few months in a row. I guess I could keep that balance and use it to pay for gas all year but I'd really rather not tie up that money like that. Maybe I'm missing something though?

 

[Nick87]

I’m old enough I just pay cash for my apps. I used to play the CC games

So you're not paying with a card?

 

[westbranch]

Applying for a credit card every 2 years has negligible impact on credit. I switch off the Chase Sapphire Preferred and Southwest Business credit cards between my wife and I about every two years so we can hit the point bonuses. I don't cancel cards, just downgrade them. A fun game to play and it covers the majority of our flights every year.

 

[TOGIE]

I totally agree I'd rather not have to use the credit card at all. I used to do the same but we don't really use our credit cards anymore except for gas and things like tag apps since you can't really use a debit card for that. So when I pay it off at the statement I end up getting a pretty good size statement credit for a few months in a row. I guess I could keep that balance and use it to pay for gas all year but I'd really rather not tie up that money like that. Maybe I'm missing something though?

i see no problem with using a credit card. i'm still using one, it's just the fidelity CC.

but paying it off monthly is what i mean by fronting the cash as if it's spent. really, every swipe (that would be "tap" for any gen z or alphas on here) of my CC is considered cash out the door in my budgeting.

whatever the rewards are, 1% or 2%, is better than 0. so, might as well tap that shit for everything

 

[brymoore]

So your not paying with a card?

I pay my credit card off monthly. I use it for points.

 

[Irrelevant]

Citi Double 2%

 

[Treeshark]

Cabelas credit card for everything.

I have been threatening to switch for years and probably should, but I am too lazy for such things.

 

[Nick87]

I pay my credit card off monthly. I use it for points.

So do we. But we only use actual credit cards for very small amount of our monthly transactions. So I'd rather not have that begative balance on there after the tag refunds if that makes sense.

 

[TOGIE]

So I'd rather not have that balance on there after the tag refunds if that makes sense.

the negative balance? why not?

 

[seeth07]

We maximize our point potential by paying for literally everything possible with the Credit Card. Most months we are cycling 5k or more on it so the 2% plus (get 4% for Amazon purchases) really adds up fast. The 7th of every month we pay it off 100% and repeat.

With Amazon Prime and having free shipping on everything, we shop for almost every single thing on Amazon except for groceries. Fishing lures, paper towel, clothes, medicine, you name it you can almost always get it on Amazon.

 

[Nick87]

the negative balance? why not?

Yes negative balance I should have said. Because it'll take me months to use that up. I mean I guess I could....

 

[seeth07]

We maximize our point potential by paying for literally everything possible with the Credit Card. Most months we are cycling 5k or more on it so the 2% plus (get 4% for Amazon purchases) really adds up fast. The 7th of every month we pay it off 100% and repeat.

With Amazon Prime and having free shipping on everything, we shop for almost every single thing on Amazon except for groceries. Fishing lures, paper towel, clothes, medicine, you name it you can almost always get it on Amazon.

Like for example, I'm looking at my December statement.

$903 spent on Amazon = $36.12 reward

$4854 spent elsewhere = $97.08 reward

$133.20 of free stuff from December alone. Thank you very much Amazon.

 

[Nick87]

Like for example, I'm looking at my December statement.

$903 spent on Amazon = $36.12 reward

$4854 spent elsewhere = $97.08 reward

$133.20 of free stuff from December alone. Thank you very much Amazon.

I guess that's one way to look at it.

 

[jt13]

Discover will re-up your zero percent interest annually. Just need to call and ask for it.

 

[TOGIE]

Yes negative balance I shoukd have said. Because it'll take me months to use that up. I mean I guess I could....

in the end it's largely all the same. negative balance on the card or positive balance in the checking account. so i say no problem.

technically you circle back to opportunity cost because it's money you could put in high yield or the market once it's refunded. but fungibility applies, you get a negative 2,000 on your credit card that then frees up +2,000 in the checking or saving account if you want to invest it.

let the negatives be negatives IMO.