October 2014 Garden Cult thread - Chose Which Bureau You Wanna Garden!

For just about anything you want to get off your chest about credit cards.
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CarefulBuilder14
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Postby CarefulBuilder14 » Wed Oct 01, 2014 9:23 pm

FastSRT8 wrote:LOL maybe just maybe the fact that I don't know what the hell gardening is all about is part of the reason I eventually got a Cent.

I read all the gardenning comments are realized I unconciously did all the 'right' things such as NOT applying for cards I don't want/need and letting those I like age like good wine.

If these strategies are true, then that may be one reason why I am where I am now.

You all have me curious. I should get on FICO and see what the heck my score is. LOL it may be scary low LOL


Some people do have surprisingly low FICOs. If someone has only one or two credit cards, paid off a mortgage many years ago, and has not needed a car loan for decades, then the credit history may be long in time but appears extremely limited in variety. The old car loans and mortgage have fallen off the reports.

That's one area where I think the FICO algorithms are less than ideal. With basic, no-AF rewards cards, there are clear financial incentives for someone with good credit and plenty of cash to use them to make small purchases.

With car loans and mortgages, that's not the case. There is no reason to pay even 2% on a car loan when someone has plenty of money in a savings account earning maybe 0.5% (other than adding credit diversity and a FICO boost, that is). If someone can buy a house without a mortgage, there is no reason to pay even 3.5%.

Yes, I get that a mortgage, car, or student loan is different in some sense...but how different, really, is paying one bill on time vs. another?

Edit: I know you could use the money elsewhere - maybe buying stocks and earning 8%. Also, mortgage interest can be tax-deductible. Some car dealers will give '0% financing', but I expect that comes with fees. I've not seriously investigated.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when


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otter
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Postby otter » Wed Oct 01, 2014 10:12 pm

FastSRT8 wrote:LOL maybe just maybe the fact that I don't know what the hell gardening is all about is part of the reason I eventually got a Cent.

I read all the gardenning comments are realized I unconciously did all the 'right' things such as NOT applying for cards I don't want/need and letting those I like age like good wine.

If these strategies are true, then that may be one reason why I am where I am now.

You all have me curious. I should get on FICO and see what the heck my score is. LOL it may be scary low LOL


Your credit profile will never be complete until you join the garden. What good is a Centurion card without at least 8 comenity cards earned with the shopping cart trick?
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

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Vattené
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Postby Vattené » Thu Oct 02, 2014 7:20 am

CarefulBuilder14 wrote:Some people do have surprisingly low FICOs. If someone has only one or two credit cards, paid off a mortgage many years ago, and has not needed a car loan for decades, then the credit history may be long in time but appears extremely limited in variety. The old car loans and mortgage have fallen off the reports.

That's one area where I think the FICO algorithms are less than ideal. With basic, no-AF rewards cards, there are clear financial incentives for someone with good credit and plenty of cash to use them to make small purchases.

With car loans and mortgages, that's not the case. There is no reason to pay even 2% on a car loan when someone has plenty of money in a savings account earning maybe 0.5% (other than adding credit diversity and a FICO boost, that is). If someone can buy a house without a mortgage, there is no reason to pay even 3.5%.

Yes, I get that a mortgage, car, or student loan is different in some sense...but how different, really, is paying one bill on time vs. another?

Edit: I know you could use the money elsewhere - maybe buying stocks and earning 8%. Also, mortgage interest can be tax-deductible. Some car dealers will give '0% financing', but I expect that comes with fees. I've not seriously investigated.


This is the exact situation in which my dad found himself. I convinced him to apply for the Walmart Card for the gas discount (he usually uses prepaid gift cards for gas to get a smaller discount), be he was denied. His mortgage must have fallen off his report and he always pays cash for cars.

I believe a lot of those 0% financing offers have a lower cash price on the cars.

It is absolutely pointless to pay interest on a loan JUST for credit purposes, especially when you're never planning on taking out another mortgage.
-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

wiivile
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Postby wiivile » Thu Oct 02, 2014 8:18 am

While I don't believe that gardening to allow your account to "grow" is better than applying for new credit, because you'll almost always get more credit from opening a new account, AAoA is an important thing and is reason enough to justify "gardening" if you don't really need new credit.

I have three cards and enough credit, so I see no reason to open new cards. I'd rather let my AAoA increase.
    Chase Sapphire Preferred Visa Signature: 11/2013, $15,000 CL
    Chase Freedom Visa: 11/2009, $4,700 CL
    U.S. Bank Cash+ Visa Signature: 11/2013, $11,200 CL

MemberSince99
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Postby MemberSince99 » Thu Oct 02, 2014 12:44 pm

wiivile wrote:While I don't believe that gardening to allow your account to "grow" is better than applying for new credit, because you'll almost always get more credit from opening a new account, AAoA is an important thing and is reason enough to justify "gardening" if you don't really need new credit.

I have three cards and enough credit, so I see no reason to open new cards. I'd rather let my AAoA increase.




I always hesitate to say always. That pretty much seems to be true with Chase, but think about the Amex 3X CLI (and without a HP at that). Some people have gotten 5X or 10X CLIs and it's hard to know if by opening a new account they would have done as well, but those are pretty substantial. But I will agree, if you are talking about Chase, from what I've read and seen there is truth in that.

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Yoshiofthewire
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Postby Yoshiofthewire » Thu Oct 02, 2014 9:21 pm

[size=80]Then there is this guy, who got 2 new cards to better meet my rewards potential ... and got nailed in to FICO for 30 pts.
My plan is to garden for a year, then swap the AmEx PRG for either a BCE or ED. My spend an AF does not justify.
Since I am in a US Air/American city, MR pts are useless for air travel.[/size]
[size=60]
American Express PRG - NPSL ('10) - NONE - Replace with BCE in 2015
US Airways barclaycard - $20,000 ('14) - Catch All - PC to Arrival in 2016
BankAmericard | Cash Rewards - $8,200 ('99) - Gas, Groceries
Discover It - $8,700 ('14) - 5% categories, ShopDiscover
[/size]

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CarefulBuilder14
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Postby CarefulBuilder14 » Thu Oct 02, 2014 9:28 pm

Yoshiofthewire wrote:Then there is this guy, who got 2 new cards to better meet my rewards potential ... and got nailed in to FICO for 30 pts.
My plan is to garden for a year, then swap the AmEx PRG for either a BCE or ED. My spend an AF does not justify.
Since I am in a US Air/American city, MR pts are useless for air travel.


I've moved my PRG spending to BCE and I am glad I made the move. If I need to make a really big purchase that a $6k limit can't cover (my car works and I rent, so I can't imagine what it would be), then odds are I can negotiate a discount by paying with a check. So the NPSL doesn't do much for me.

What is it in your credit history that would make getting a BCE now difficult? Or you just want to maximize the benefit of backdating?
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

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djrez4
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Postby djrez4 » Thu Oct 02, 2014 9:56 pm

MR points transfer to BA, often with bonuses. Awesome value for short flights. 9000 round trip under 600 miles.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]

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FastSRT8
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Postby FastSRT8 » Fri Oct 03, 2014 1:58 am

otter wrote:Your credit profile will never be complete until you join the garden. What good is a Centurion card without at least 8 comenity cards earned with the shopping cart trick?


I haven't applied for a credit card in over 12 years LOL.

Not sure I want to be 'complete' if it means applying for a card I will likely never use.

Besides, what card would I get to compliment my current staple of Amex and Visa? Mastercard??!!
Carpe diem quam minimum credula postero!

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lobbythis
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Postby lobbythis » Fri Oct 03, 2014 2:39 am

Agreed. Once you're at that level, you don't need to do anything else unless you just love collecting cards.



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