Delta Skymiles PC?

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TXviking
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Delta Skymiles PC?

Postby TXviking » Mon Apr 25, 2016 7:45 am

I just read the review for the various Delta Skymiles cards. I'm thinking about applying for one, especially as I can get a double signup bonus for the Gold.

I have not seen a similar signup bonus for the Platinum or Reserve. To be blunt: What gives?

I'm thinking the Gold fits my needs best right now. If that changes, will AmEx let me PC to the Platinum or would I need to reapply?

A friend who has the Platinum card says he pays a lower annual fee ($145 instead of $195.) Is that just a grandfathered AF?

Finally, my recent CSP approval dropped my TU FICO from 762 to 748. I imagine I'll still get approved for the Delta AmEx Gold without problems, but I am planning another large purchase (an RV, which is financed much like a mortgage). Would it be prudent to wait until after the RV purchase, or is the credit limit drop just very short term? I don't want to miss out on the 60K signup bonus, but I want the RV more than I want 30K extra bonus miles. Thoughts/opinions?


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CarefulBuilder14
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Re: Delta Skymiles PC?

Postby CarefulBuilder14 » Mon Apr 25, 2016 4:02 pm

Bonuses change often. I've seen targeted Delta Platinum offers for 70k + $100. There was no waived first-year AF, though.

Delta Platinum and Delta Reserve can offer a lot in terms of MQMs, companion certificates, and upgrade priority. Those perks come at the cost of earning fewer miles and having less flexibility, though.
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Vattené
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Re: Delta Skymiles PC?

Postby Vattené » Mon Apr 25, 2016 4:58 pm

When are you planning on financing the RV? My opinion* is to get that in order before worrying about credit card rewards. It is a good offer, but your credit is on the borderline of what is generally required to get the best financing terms. It would be a shame to get stuck with a higher interest rate on such a major purchase just because of a new card, from which your score would rebound relatively soon anyway.

*contingent on if you want to finance soon, as in a few months; if you're just starting to seriously consider this and it might not be for 6 months that changes things.
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ingramjuan
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Re: Delta Skymiles PC?

Postby ingramjuan » Mon Apr 25, 2016 11:25 pm

TXviking wrote:Would it be prudent to wait until after the RV purchase, or is the credit limit drop just very short term? I don't want to miss out on the 60K signup bonus, but I want the RV more than I want 30K extra bonus miles. Thoughts/opinions?



Would suggest waiting until you get the RV. You can always get a CC due to the rewards come and go.
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TXviking
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Re: Delta Skymiles PC?

Postby TXviking » Tue Apr 26, 2016 12:30 am

Vattené wrote:When are you planning on financing the RV? My opinion* is to get that in order before worrying about credit card rewards. It is a good offer, but your credit is on the borderline of what is generally required to get the best financing terms. It would be a shame to get stuck with a higher interest rate on such a major purchase just because of a new card, from which your score would rebound relatively soon anyway.

*contingent on if you want to finance soon, as in a few months; if you're just starting to seriously consider this and it might not be for 6 months that changes things.


I think this is good advice. My credit should be in the 800s somewhere, but the one derog from Wells Fargo drags it down probably at least 50 points. I'm at 748 TU (don't know for Experian/Equifax; they were at 761 and 766 respectively last month when I did my mortgage refi.) The strictest mortgage lenders seem to use 760 as a cutoff; 750, 740 and 720 are also commonly used.

The mortgage refi was by far my biggest priority. That, fortunately, went well; I now have a 15-year mortgage at 2.5% and I'm on track to pay it off in 12 years.

With the mortgage refi behind me, I felt comfortable applying for the CSP. I was approved instantly, but the HP seems to have dropped TU from 761 to 748, although closing another Chase card (United MP Explorer) may have contributed as well. I'm keeping utilization ~1-2%, as I know dropping it to zero will have a negative impact; but I PIF every month. Hoping the credit score will jump back up to the 760s in the next few months.

Timeline for the RV purchase is sometime between May and July. It's not just a matter of picking the ideal time to apply; I also need to find the right RV. Given the size of the investment, I'm being VERY picky. But within 90 days is likely. If I don't find the right RV or can't get financing on favorable terms, I might wait another year, but I'd also like to take advantage of currently low fuel prices. (I'm looking at class A diesel pushers; 7-10 mpg is not bad for a vehicle that size, but it means a jump in fuel prices makes a big difference.)

Thanks for the advice, Vattené. I'm going to take it. :)

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Vattené
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Re: Delta Skymiles PC?

Postby Vattené » Tue Apr 26, 2016 2:38 pm

You are welcome! That is just what I would do in your situation, but I'd want to play it pretty safe when it comes to locking down financing for such a major purchase. It's possible you could apply for the card now and still get the best terms on the loan, but it's also possible that new account could drag you down just enough to dip into the lower "tier" of what terms you'll get offered. If it's treated similarly to a mortgage, the lender may not like seeing a new account that's just a month or so old. General advice on a true mortgage is to not allow any new account for 6+ months before applying.

Best of luck! Hopefully you'll get a targeted offer down the road.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

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CarefulBuilder14
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Re: Delta Skymiles PC?

Postby CarefulBuilder14 » Tue Apr 26, 2016 2:46 pm

For a May/June RV purchase, it's definitely best to wait before adding another CC. Hopefully the new CSP doesn't bring any difficulty when you finance the RV.
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TXviking
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Re: Delta Skymiles PC?

Postby TXviking » Tue Apr 26, 2016 3:31 pm

Vattené wrote:You are welcome! That is just what I would do in your situation, but I'd want to play it pretty safe when it comes to locking down financing for such a major purchase. It's possible you could apply for the card now and still get the best terms on the loan, but it's also possible that new account could drag you down just enough to dip into the lower "tier" of what terms you'll get offered. If it's treated similarly to a mortgage, the lender may not like seeing a new account that's just a month or so old. General advice on a true mortgage is to not allow any new account for 6+ months before applying.

Best of luck! Hopefully you'll get a targeted offer down the road.


Yep, that's why I didn't apply for the CSP before finalizing my house refi. The RV is not QUITE as high on the priority list -- it's not a major crisis if I have to wait a year -- but I've experienced "dipping just below" just from too many inquiries related to the original mortgage. Don't want to have that happen again.
(On the original mortgage, I did four inquiries within a couple of days (comparison shopping), then pulled out of the deal when I found foundation problems during the inspection. One of the lenders decided to do two more HPs at +1 and +3 months without my permission, and once done they are impossible to remove. And when I finally found another house, it took two more HPs to get financed. That pulled my score down to a 748 and the lender tacked on an extra .125% interest because I dipped below 750. Not the end of the world, but it sure annoyed me at the time, and was one more reason to refi now. It's also why I'm so sensitive about HPs, as evidenced in some other threads.)

Thanks!

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Vattené
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Re: Delta Skymiles PC?

Postby Vattené » Tue Apr 26, 2016 9:30 pm

Ouch, that does hurt. Certainly nothing earth shattering as you say, but small APR increases on a mortgage translate into a lot of dollars and cents. It definitely makes credit card rewards look like peanuts in comparison. I'm sure it's more frustrating than anything when you are so close to that cutoff.

I think those multiple HPs are supposed to be lumped together and treated as one for scoring purposes (I'm not sure how much of a time frame you're given). The idea behind it is it's one credit-seeking activity and one shouldn't be punished for shopping for favorable rates. Of course they still show up independently in your profile, and of course I would have no way to verify that it works like that....which is why I have been skeptical of it for myself when that's happened to me in the past.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

TXviking
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Re: Delta Skymiles PC?

Postby TXviking » Tue Apr 26, 2016 10:23 pm

Vattené wrote:Ouch, that does hurt. Certainly nothing earth shattering as you say, but small APR increases on a mortgage translate into a lot of dollars and cents. It definitely makes credit card rewards look like peanuts in comparison. I'm sure it's more frustrating than anything when you are so close to that cutoff.

I think those multiple HPs are supposed to be lumped together and treated as one for scoring purposes (I'm not sure how much of a time frame you're given). The idea behind it is it's one credit-seeking activity and one shouldn't be punished for shopping for favorable rates. Of course they still show up independently in your profile, and of course I would have no way to verify that it works like that....which is why I have been skeptical of it for myself when that's happened to me in the past.


Well, refinancing got me a 2.5% rate because my credit improved a bit between 2014 and 2016, and also because rates overall dropped quite a bit from 2014 to 2016. So I was only stuck with the higher rate for just under two years. Even so, the initial rate hike (3.5% locked in -> 3.625% final rate) cost me a few thousand dollars over those two years, especially considering refi closing costs.

The big improvement in my credit score should come between September of this year and July of next year. That's when the derog drops off. So if I can't get the RV financing I want this year, I will next year. Once that derog drops off, I also won't have to worry about HPs as much.

And yeah, everyone assured me that comparison shopping shouldn't hurt your credit. But that policy seems to be up to each lender; it certainly does affect FICO scores. And most lenders just look at the number. So, caveat emptor. :mad:



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