December 2015 Garden Club

For just about anything you want to get off your chest about credit cards.
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4ktvs
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Re: December 2015 Garden Club

Postby 4ktvs » Wed Dec 16, 2015 5:41 pm

kdm31091 wrote:Nope, maxing it out isn't necessary. You just want to show regular usage (more than just one tiny purchase a month for example).


Okay that sounds good, hopefully it works and I get a good CLI.

I am still kind of upset over it, but worse things have happened that's for sure. A grade A+ first world problem is what this is.


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CarefulBuilder14
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Re: December 2015 Garden Club

Postby CarefulBuilder14 » Wed Dec 16, 2015 6:03 pm

4ktvs wrote:
kdm31091 wrote:Nope, maxing it out isn't necessary. You just want to show regular usage (more than just one tiny purchase a month for example).


Okay that sounds good, hopefully it works and I get a good CLI.

I am still kind of upset over it, but worse things have happened that's for sure. A grade A+ first world problem is what this is.

The reports I saw of SP CLIs from FNBO gave no explicit mention (as far as I can recall) of transaction frequency or average spend.

You can look into it further, but I wouldn't be at all surprised if they'd frown on only getting a trivial amount of business when it came time to ask for a CLI.

On the other hand...$1k really is oddly low for someone who doesn't have a thin file. Maybe they see something they don't like?
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

kdm31091
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Re: December 2015 Garden Club

Postby kdm31091 » Wed Dec 16, 2015 6:06 pm

Been putzing around online and came across this gem from an online article:

"As you’ll learn below, you may be leaving about $500 a year or more on the table by not holding at least some of these cards."

The link goes on to list various "3% on something" cards like AARP and the AAA Visa.

The problem with the $500 number is that you aren't really leaving $500 behind, assuming you already have a QS or a Double Cash for everyday spending. If so, the extra 1% on a couple categories is not going to equal $500 until/unless you spend $50,000 on the relevant category. Since AARP's bonus categories are gas and dining, I would say it is highly unlikely anyone is spending that kind of money on those things.

It's those kinds of articles that are part of the myfico "leaving money on the table" syndrome because they are misleading in terms of what you actually gain from adding a bunch more cash back cards.

http://www.magnifymoney.com/blog/earnin ... y-category

There's the link.

Tubpbs
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Re: December 2015 Garden Club

Postby Tubpbs » Wed Dec 16, 2015 9:49 pm

kdm31091 wrote:Nope, maxing it out isn't necessary. You just want to show regular usage (more than just one tiny purchase a month for example).


Agreed. Maybe use it for your very tiny, but frequent transactions...
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

jcarte29
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Re: December 2015 Garden Club

Postby jcarte29 » Thu Dec 17, 2015 9:27 am

CarefulBuilder14 wrote:
CarefulBuilder14 wrote:I've not done much research into it, but it looks like Fidelity has a promotion for bringing in nonretirement assets. Up to 50k miles on Delta, United, or AA.

A big bonus without a new account...makes it easier to garden!

Just signed up for the Delta promo (since I know I'll use the SkyMiles and they don't expire) and put in the asset transfer request on some buy-and-hold index ETFs.

Seven minutes of work gets 50k miles...

I think I like this "unconventional points" game. :ppp



I've been tossin this idea around for a while. I live near a regional airport that utilizes AA and Delta. I have AAdvantage (transitioned from my Divided Miles Membership) and I have family in Atlanta, where Delta connects through here.

I think it would be advantageous to get Sky Miles, maybe not the credit card but at least the membership (I know im not applyin for anything for rest of the year and most likely first quarter of 2016)
Portfolio:
CITI Diamond Preferred $7,000 [06-16]
AMEX Platinum (Charge) [11-16]
AMEX EDay $12,000 [11-14]
Lowes Store $15,000 [4-14]
CSP VISA $6,000 [7-14]
GM MC $9,000 [9-14]
AAdvantage Red MC $10,350 [10-14]
Discover IT $4,500 [03-15]
Chase Marriott VISA $5,000 [04-15]
Cap One Quick $2,600[4-10]

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Vattené
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Re: December 2015 Garden Club

Postby Vattené » Thu Dec 17, 2015 10:51 am

kdm31091 wrote:Been putzing around online and came across this gem from an online article:

"As you’ll learn below, you may be leaving about $500 a year or more on the table by not holding at least some of these cards."

The link goes on to list various "3% on something" cards like AARP and the AAA Visa.

The problem with the $500 number is that you aren't really leaving $500 behind, assuming you already have a QS or a Double Cash for everyday spending. If so, the extra 1% on a couple categories is not going to equal $500 until/unless you spend $50,000 on the relevant category. Since AARP's bonus categories are gas and dining, I would say it is highly unlikely anyone is spending that kind of money on those things.

It's those kinds of articles that are part of the myfico "leaving money on the table" syndrome because they are misleading in terms of what you actually gain from adding a bunch more cash back cards.

http://www.magnifymoney.com/blog/earnin ... y-category

There's the link.

Honestly, I thought you might be overreacting when I first read this - assuming the article was probably talking about the advantages to people not currently using cash back cards. But no. I couldn't believe it explicitly recommended getting a Double Cash for a base 2% on everything, and adding a bunch of category cards on top of it.

Hey, if it's worth it to someone to go through all that trouble, more power to them. But I totally agree that it is a lot of hassle for little gain {edited to add: especially when you consider some of their recommendations require paying a nominal fee and joining a CU or setting up a checking account with direct deposit}. Talking about categories in percentage rates makes it seem great, but if you consider the marginal benefit of getting 5% instead of 2% back on your phone bill over a year you're probably not netting much in dollars and cents.
-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

kdm31091
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Re: December 2015 Garden Club

Postby kdm31091 » Thu Dec 17, 2015 1:23 pm

Vattené wrote:
kdm31091 wrote:Been putzing around online and came across this gem from an online article:

"As you’ll learn below, you may be leaving about $500 a year or more on the table by not holding at least some of these cards."

The link goes on to list various "3% on something" cards like AARP and the AAA Visa.

The problem with the $500 number is that you aren't really leaving $500 behind, assuming you already have a QS or a Double Cash for everyday spending. If so, the extra 1% on a couple categories is not going to equal $500 until/unless you spend $50,000 on the relevant category. Since AARP's bonus categories are gas and dining, I would say it is highly unlikely anyone is spending that kind of money on those things.

It's those kinds of articles that are part of the myfico "leaving money on the table" syndrome because they are misleading in terms of what you actually gain from adding a bunch more cash back cards.

http://www.magnifymoney.com/blog/earnin ... y-category

There's the link.

Honestly, I thought you might be overreacting when I first read this - assuming the article was probably talking about the advantages to people not currently using cash back cards. But no. I couldn't believe it explicitly recommended getting a Double Cash for a base 2% on everything, and adding a bunch of category cards on top of it.

Hey, if it's worth it to someone to go through all that trouble, more power to them. But I totally agree that it is a lot of hassle for little gain {edited to add: especially when you consider some of their recommendations require paying a nominal fee and joining a CU or setting up a checking account with direct deposit}. Talking about categories in percentage rates makes it seem great, but if you consider the marginal benefit of getting 5% instead of 2% back on your phone bill over a year you're probably not netting much in dollars and cents.


I wanted to think it was merely saying "you're missing out by not using cash back cards at all", a point with which I agree, but it appears they were saying to get a flat 2% card and then add a bunch of "3% on this and that" cards, which is just unnecessary and gives little gain for most people.

But yeah, if someone wants to do it, more power to them, as you said. I just think articles like that make it sound more important/meaningful than it really is. You aren't going to net an extra $500 by adding a "3% on something" card unless you are spending an enormous amount of money anyway.

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Vattené
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Re: December 2015 Garden Club

Postby Vattené » Thu Dec 17, 2015 1:47 pm

kdm31091 wrote:I wanted to think it was merely saying "you're missing out by not using cash back cards at all", a point with which I agree, but it appears they were saying to get a flat 2% card and then add a bunch of "3% on this and that" cards, which is just unnecessary and gives little gain for most people.

But yeah, if someone wants to do it, more power to them, as you said. I just think articles like that make it sound more important/meaningful than it really is. You aren't going to net an extra $500 by adding a "3% on something" card unless you are spending an enormous amount of money anyway.


Also it's one thing to fully realize what you're actually gaining by doing this and consider it worthwhile (again, nothing against anyone that wants to take advantage of every penny in rewards they possibly can), but I think we both feel the issue is people not thinking it through all the way and realizing that in absolute terms they won't be getting much. They think along the lines of, "hey, I have to fill up every week and 3% is a lot so I might as well sign up for a gas-specific card."

Personally, I would rather sign up for a bunch of store accounts than niche cash back cards. If you did it when you were making a large purchase, you could get an upfront discount rather than spending all the money for a year to build up enough rewards to redeem for a statement credit, for example.
-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

4ktvs
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Re: December 2015 Garden Club

Postby 4ktvs » Thu Dec 17, 2015 2:12 pm

CarefulBuilder14 wrote:
4ktvs wrote:
kdm31091 wrote:Nope, maxing it out isn't necessary. You just want to show regular usage (more than just one tiny purchase a month for example).


Okay that sounds good, hopefully it works and I get a good CLI.

I am still kind of upset over it, but worse things have happened that's for sure. A grade A+ first world problem is what this is.

The reports I saw of SP CLIs from FNBO gave no explicit mention (as far as I can recall) of transaction frequency or average spend.

You can look into it further, but I wouldn't be at all surprised if they'd frown on only getting a trivial amount of business when it came time to ask for a CLI.

On the other hand...$1k really is oddly low for someone who doesn't have a thin file. Maybe they see something they don't like?


I think one of those is the fact I have two cards less than 6 months old and under human UW review they worried I might be desperate for credit when I only have 2 cards older than a year in account age.

The fact is all 5 of the cards I had fit into less than two years of history also might have made them feel uneasy about what pattern is forming. They have risk models and I think they felt I was higher risk than most they chose to approve.

My only credit goal for 2016 is to get a CLI out of FNBO for this card and then likely ask for a 2nd CLI. If they give a limit I am okay with after the first CLI I will likely leave it alone, but it's hard to tell what will happen.

Vermonster
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Re: December 2015 Garden Club

Postby Vermonster » Thu Dec 17, 2015 2:49 pm

The biggest thing that people need to look at is "opportunity cost." Yes an app spree helps your AAoA by loading HPs and accounts at the same time and letting everything age together. But you generally end up with a ton of 0% offers that will be virtually wasted, or minimum spends that won't be met, or bonus savings that will be worthless. Opening that AARP for the extra 1% (which is already worthless if you eat in one day a year) might reduce the chances of a cli later on other cards. Those 36 store cards might lower your chances for a decent mortgage later in life costing you thousands in interest.

I'm sure people would reconsider the "$500 left on the table" if they could see everything they had to give up later in life for it.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k



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