Card/issuer-specific myths

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CarefulBuilder14
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Card/issuer-specific myths

Postby CarefulBuilder14 » Mon Sep 21, 2015 5:14 pm

What are the myths people can think of surrounding particular cards...factually inaccurate claims that circulate but don't die?

1. There are a few unusual claims around rewards and payments on Citi Double Cash. I think the only true one is that you don't earn rewards on the "payment" side for when you redeem your rewards as a statement credit. So if you take statement credits, it's like a 1.98% cash back card.

2. Another is that you absolutely must have a previous $5k CL to get a CSP.

Others?
Last edited by CarefulBuilder14 on Mon Sep 21, 2015 5:14 pm, edited 1 time in total.
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Vermonster
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Re: Card/issuer-specific myths

Postby Vermonster » Mon Sep 21, 2015 8:51 pm

There used to be a myth with charge cards that they would report your highest historical balance as the "limit." So people would charge like $10k in a month to "set the limit" then use it normally.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

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CarefulBuilder14
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Re: Card/issuer-specific myths

Postby CarefulBuilder14 » Mon Sep 21, 2015 11:43 pm

Vermonster wrote:There used to be a myth with charge cards that they would report your highest historical balance as the "limit." So people would charge like $10k in a month to "set the limit" then use it normally.

Yeah, I always had my doubts about that one. Inevitably, every charge card would have been at 100% utilization at least once!

And related to that, there's the myth that a charge card contributes to your credit mix as an account type other than a credit card. Charge cards are listed as revolving accounts, just like true credit cards but with slightly different information.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
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Might drop: BrooksBros, Prestige (Costco PC?)
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takeshi
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Re: Card/issuer-specific myths

Postby takeshi » Tue Sep 22, 2015 8:12 am

"AmEx hates balances"

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CarefulBuilder14
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Re: Card/issuer-specific myths

Postby CarefulBuilder14 » Tue Sep 22, 2015 11:04 am

takeshi wrote:"AmEx hates balances"

So where does the truth lie with that one? What balance/payment/utilization behavior other than PIF is Amex comfortable with?
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
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Vermonster
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Re: Card/issuer-specific myths

Postby Vermonster » Tue Sep 22, 2015 11:17 am

CarefulBuilder14 wrote:
takeshi wrote:"AmEx hates balances"

So where does the truth lie with that one? What balance/payment/utilization behavior other than PIF is Amex comfortable with?


From my experience, they care no more than any other issuer will. 99% of CLD stories on MF are due to risky behavior or a computer error. If you charge up $15k on a $20k card and make only minimum payments, you are going to be in trouble with anyone. Amex just seems to give these people less of a leash.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

Kevin86475391
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Re: Card/issuer-specific myths

Postby Kevin86475391 » Tue Sep 22, 2015 5:00 pm

CarefulBuilder14 wrote:
Vermonster wrote:There used to be a myth with charge cards that they would report your highest historical balance as the "limit." So people would charge like $10k in a month to "set the limit" then use it normally.

Yeah, I always had my doubts about that one. Inevitably, every charge card would have been at 100% utilization at least once!

Yes, I confess that all the myths and uncertainty regarding charge cards has pretty much dissuaded me from ever getting one. I do believe the highest historical balance = limit for reporting purposes is likely a myth...but I still have a bit of niggling doubt. I also don't really care for the concept of NPSL cards to begin with. Everything I've ever read on the topic indicates that there IS a limit, they just don't tell you. No thanks, I'd rather have that piece of information. Besides my regular cards have limits much higher than I would ever hit in a month, so the limits are in no way constraining me. I have a World Mastercard and Visa Signature card, which I've heard are inclined to let users go over limit, but I certainly don't plan to test this out.

Amex has been aggressively sending me pre-offers for their charge cards, but just the fact that they're charge cards sends them directly to the trash. Also, I do PIF, but it's always nice to have other options. So I'd rather a regular credit card that I COULD carry a balance on if I wanted to without incurring the wrath or disappointment of the issuer.

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Re: Card/issuer-specific myths

Postby flan » Tue Sep 22, 2015 8:55 pm

Kevin86475391 wrote:
CarefulBuilder14 wrote:
Vermonster wrote:There used to be a myth with charge cards that they would report your highest historical balance as the "limit." So people would charge like $10k in a month to "set the limit" then use it normally.

Yeah, I always had my doubts about that one. Inevitably, every charge card would have been at 100% utilization at least once!

Yes, I confess that all the myths and uncertainty regarding charge cards has pretty much dissuaded me from ever getting one. I do believe the highest historical balance = limit for reporting purposes is likely a myth...but I still have a bit of niggling doubt. I also don't really care for the concept of NPSL cards to begin with. Everything I've ever read on the topic indicates that there IS a limit, they just don't tell you. No thanks, I'd rather have that piece of information.


Except you don't have that information. If your card issuer decides you're doing risky things, they will shut your account down well before you reach the nominal limit. And that includes doing perfectly reasonable things, like dropping $10K at a jewelry or electronics shop.

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Re: Card/issuer-specific myths

Postby CarefulBuilder14 » Tue Sep 22, 2015 9:35 pm

Kevin, if the rewards and perks of an Amex charge card make sense for you, then get one. The effective CL an grow very quickly and exceed what a WMC/VS card can generally offer.

I used to feel the way you do...but all I care about now CL-wise is whether a charge can go through or not, and Amex is really the best at that.

And Amex is also great for unusual transactions. CSP requires travel notifications and occasionally rejects a genuine transaction. CSP has blocked my online transactions before (multiple transaction on one day), and I had to call them 24 hours later (when I got merchant emails about rejected transactions) to find out what the problem with the card was. They did nothing to reach out to me. Discover has declined a transaction, but at least sent me an email right away to let me know there was suspicious activity.

I like it that Amex will just go through smoothly for slightly-unusual transactions. I don't have to worry about a too-suspicious fraud detection algorithm.
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

kdm31091
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Re: Card/issuer-specific myths

Postby kdm31091 » Wed Sep 23, 2015 6:52 am

Yeah I get tired of reading the "Amex hates balances" crap too. No, they don't, or they wouldn't offer revolving cards.

If you are racking up a huge balance and paying minimums as mentioned, any issuer will have a problem with that. I think Amex just has less patience for that.

But everyday, average balancing carrying is pretty unlikely to be a problem. MF is not representative of the general population or anything close. It's people constantly pushing the envelope and seeking way, way more credit than they should. (I find it humorous that seemingly every member makes 100k+, can justify 20 AF travel cards, etc...give me a break).



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