Wondering Should I Get Another CC, or Stay Put and Wait?

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CCGuy88
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Wondering Should I Get Another CC, or Stay Put and Wait?

Postby CCGuy88 » Sun Oct 04, 2015 9:38 pm

Hi everyone,

A few years ago (before oct 2013), I was had little to no delinquent credit (for a error from my job). I manage to clean it up, had a car loan (which is paid off), and cant forget to mention the help of this forum, I had enough balls to go in and I was approved for the chase freedom.

I've been paying in full just about every month on the freedom (no interest charges), and just mid july, I opened up a savings.

I have some things I want to get before the end of the year (around $500-700 worth), and I've been eying the Chase Sapphire Preferred.

There's only 1 problem. I dont know how I would meet the minimum spend of 4k.

I dont have any friends I can pick up the tab, and in 3 months, I probably could hit 2k (some of my expenses require cash or check, so I can't use my cc).

Now some time next year, I intend on getting braces. I'm thinking of possibly getting a dental insurance plan, and paying for my braces in full with the card, but for now, I want to get my gadgets (I know, I've been waiting for 2 years + to get them).

Should I just wait, and pay for these items with the freedom? Or should I look for another credit card? I really want to travel (I've hardly been out my city), but I want a credit that I'm not just solely using for the one time 40-50k travel points. I would like a card that works like the CSP, something I can see myself not closing the account, nor having a huge annual fee, but I dont know where to begin? And I dont know even if I get the card if I should go for the CSP?


Any advice CCF'ers?


kdm31091
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Re: Wondering Should I Get Another CC, or Stay Put and Wait?

Postby kdm31091 » Mon Oct 05, 2015 7:09 am

To be honest, the CSP requires a fairly high spend and travel level after the bonus to make sense long term. To justify $95, you have to be spending pretty heavily on dining and/or travel. Since you are a new traveler by your description, I don't think the CSP makes sense right now.

Sometimes we get caught in up the "special travel" cards but the reality is these cards generally benefit people who are flying a LOT for work/pleasure, often internationally, etc. For the more "average" person who is taking a couple domestic trips a year, paying for CSP doesn't make sense and you will come out ahead with a cash back card. Many cash back portals like Discover Deals and Upromise have savings on Orbitz, Travelocity, etc which for many of us will come out ahead.

For example: My beach trip in the summer takes place at a non-chain hotel so the CSP transfer thing would do me zero good. I could maybe book through Chase (and get an expensive, not great deal), but going through booking.com via Upromise, I will get 10% off (assuming it's still there when I book lol). So that is far better and more straightforward for me than hassling with point transfers etc.

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CarefulBuilder14
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Re: Wondering Should I Get Another CC, or Stay Put and Wait?

Postby CarefulBuilder14 » Mon Oct 05, 2015 5:48 pm

Don't get CSP unless you can pay off each statement balance in full. It has no intro 0% period.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

Kevin86475391
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Re: Wondering Should I Get Another CC, or Stay Put and Wait?

Postby Kevin86475391 » Mon Oct 05, 2015 8:37 pm

I agree. It doesn't sound like this isn't the right card for you based on your situation. The last thing you want to do is look for a way to spend an extra couple of thousand dollars, especially if you won't be able to PIF and will then begin accruing interest charges.

Even in the case of your dental work, the CSP probably isn't the best the way to pay for it. Ideally of course you'd want to be able to pay for it outright in cash (or through a credit card for rewards which you then pay in full before any interest charges hit), but failing that there may be other 0% finance options that are more beneficial. Quite a few cards do have a 0% intro APR - and while I'm not advocating that you get one and run it up just for the hell of it - if you do need to get your dental work (or gadgets) sooner rather than later and can't pay outright, you're probably better offing putting the charges on a 0% card and making sure to gradually pay it off in full before the 0% APR expires, than using the spend to meet the CSP threshold - and then having to pay interest charges and be the on hook for a $95 AF in subsequent years.

Regardless though, congrats on getting your credit cleaned up! :cheers: :lift:

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CarefulBuilder14
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Re: Wondering Should I Get Another CC, or Stay Put and Wait?

Postby CarefulBuilder14 » Mon Oct 05, 2015 9:22 pm

A basic no-AF Barclaycard Arrival might be good in this case.

You get a signup bonus worth a little over $200 in statement credits to offset travel purchases you make with the card, and only need to spend $1k in 3 months to earn it.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

CCGuy88
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Re: Wondering Should I Get Another CC, or Stay Put and Wait?

Postby CCGuy88 » Mon Oct 05, 2015 10:14 pm

Appreciate all the advice.

I pay my statement in full every time its due (my due date is paid in full, but my reporting date, I may have a few pending charges that reflects the next statement). I wont carry any interest charges on the CSP, and I can pay for the braces right now in full with cash (but I prefer getting a great cc with bonuses).

But I see the point alot of members are saying. It seems like you have to book a ton of flights and many purchases to make the CSP work.

Typically I have a $300-600 balance I pay in full on the Freedom every month with a 2.9k limit (they gave me a 1k auto cli after a year).

So I'm wondering, should I keep just using the Freedom (its been 2 years), or should I start looking to adding another card to pay for those gadgets, and other things down the line?

I would like a card with possibly:

-No annual fee (if the perks outweigh the typical $95 fee, then I'm open to it).
- Great bonuses (APR isnt important to me as I pay in full every month, but I love the benefits of having bonuses like travel, cashback, hotels, etc).

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CarefulBuilder14
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Re: Wondering Should I Get Another CC, or Stay Put and Wait?

Postby CarefulBuilder14 » Mon Oct 05, 2015 10:58 pm

IHG is an option. The signup bonus might get you 6 nights at a rural, low-cost Holiday Inn, 2-3 nights in a mid-tier place, or 1 (maybe, maybe 2) nights at a nicer InterContinental hotel.

They have a lot of properties, but may not have one where you want to go. Also, it's not a great time to apply since they aren't currently offering their best signup bonus.

Maybe combine an Amtrak train with 3 nights in a mid-cost city's Holiday Inn where you can walk or take mass transit? It's not luxury, but you could probably do it with the rewards from IHG and Arrival, with another $300 in costs (food, sightseeing, mass transit, and Amtrak fare over the $200 you'd get from Arrival).
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when

CCGuy88
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Re: Wondering Should I Get Another CC, or Stay Put and Wait?

Postby CCGuy88 » Tue Oct 06, 2015 12:32 am

It wouldnt matter to me. I'm down for any good bonuses with travel, hotel, etc.

I was looking at the Discover it card, but there arent any great signup bonuses. I also looked at the Bank AmeriCard Travel Rewards Credit Card, but not sure if thats a good offer.

What do you suggest I should do?

takeshi
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Re: Wondering Should I Get Another CC, or Stay Put and Wait?

Postby takeshi » Tue Oct 06, 2015 8:24 am

CCGuy88 wrote:Typically I have a $300-600 balance I pay in full on the Freedom every month with a 2.9k limit (they gave me a 1k auto cli after a year).

For that amount of spend you probably want to look at a cash back card. What are your major spend categories? How much non category spend? If there's a lot of the latter then a 1.5% or 2% card on all purchases may be the way to go.

CCGuy88 wrote:But I see the point alot of members are saying. It seems like you have to book a ton of flights and many purchases to make the CSP work.

You don't have to book a lot of flights but a significant amount of spend is required to accrue enough UR points to redeem and to get well beyond offsetting the AF. I've had about $26K each year on mine and even that's not really a whole lot but a good portion of that is at 2x plus I have other UR cards earning at 5x. One also has to be able to redeem for options that maximize UR point value. Cash back is an option but it is only $0.01/point. Accruing the UR points with the CSP itself is faster if one has a lot of spend in categories that are not simply 1x but dining and travel are broadly defined.

CCGuy88 wrote:What do you suggest I should do?

First determine your priorities. Then define your needs/wants and use that to select a card that suits those needs/wants. Your approach is scattered so it's no wonder that you're a bit confused.

Does the sign on bonus matter more than your ability to earn rewards in the long run on your spend? Focusing on the bonus is what got you to the CSP which doesn't seem to suit you...

Running the numbers for your spend would help to give you a better idea of the rewards you'd stand to earn and the difference from one card to another. While you're getting 5% on the Freedom for category spend you're getting 1% on non-category spend. If you're looking at a 2% cards as a possibility how much is that difference in dollars? Understanding that may help you in determining if the $ are really worth the effort to you.

CCGuy88
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Re: Wondering Should I Get Another CC, or Stay Put and Wait?

Postby CCGuy88 » Tue Oct 06, 2015 12:50 pm

Appreciate the input.

What's important to me is getting great rewards for either travel, hotel, or cashback, and having a card I can use long term with no annual fee. No foreigns and a nice signup bonus would be sweet, but I'm willing to compensate those for a good card.

I've been considering what you said, and here's 3 more cards I found:

- Citi Double Cash
- Amex EveryDay
- Fidelity Investment Rewards American Express



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