December 2015 Garden Club

For just about anything you want to get off your chest about credit cards.
284 posts
kdm31091
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Re: December 2015 Garden Club

Postby kdm31091 » Thu Dec 17, 2015 4:38 pm

Vermonster wrote: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.


Exactly, and I'm glad the people on this forum understand this concept far far better than the myfico sheep who open that AARP for the extra 1% every day. It's not even so much they make the choice to chase the rewards -- that's fine if that's what they want to do, although I think it's foolish -- but the bigger problem is that NOBODY ever points out any of the potential pitfalls or long term consequences. It's always: "Your score is good enough! The prequal is golden! Chase loves ____!" You'll be fine! 3% dining is awesome!"...and nothing else. While I get that it's not up to a community to be someone's financial advisor, it still seems that rewards of piddling value are placed about literally everything else. A newcomer on there can't really make an informed decision when the only responses are "did you app yet? The bonus is great!" etc

There's also the fact that that tiny "extra reward" prompts many people to spend more than they previously did, negating any actual benefit. Like the person on myfico who claimed he maxed out his Cash+ fast food...like, if you're spending 2k in 3 months on fast food alone, I think you need to stop eating 3 meals a day at Mcdonald's! It's not like he said he used fast food and another category and hit the cumulative maximum -- nope, fast food spending of 2k in a quarter. Plus he has an AARP that he "gets a lot of use out of". Yet his Sallie Mae is also "beloved" for the groceries...how can someone eat out that much AND buy that much in groceries? Overspending for rewards and following the myfico crowd, methinks.

More relevant to this specific point, he also says he wants a mortgage in the next year. So the opportunity cost of applying for 6-7 cards in the past 2 months for pennies in extra rewards will likely be that he'll face a higher mortgage rate which will force him to pay for those rewards many times over. Smart logic, eh?


Nixon
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Re: December 2015 Garden Club

Postby Nixon » Thu Dec 17, 2015 7:44 pm

The bonus offers just happen to fall into our spending range fortunately. For a while we actually had about 6 different spend offers we were grinding on.
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4ktvs
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Re: December 2015 Garden Club

Postby 4ktvs » Thu Dec 17, 2015 9:13 pm

kdm31091 wrote:
Vermonster wrote: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.


Exactly, and I'm glad the people on this forum understand this concept far far better than the myfico sheep who open that AARP for the extra 1% every day. It's not even so much they make the choice to chase the rewards -- that's fine if that's what they want to do, although I think it's foolish -- but the bigger problem is that NOBODY ever points out any of the potential pitfalls or long term consequences. It's always: "Your score is good enough! The prequal is golden! Chase loves ____!" You'll be fine! 3% dining is awesome!"...and nothing else. While I get that it's not up to a community to be someone's financial advisor, it still seems that rewards of piddling value are placed about literally everything else. A newcomer on there can't really make an informed decision when the only responses are "did you app yet? The bonus is great!" etc

There's also the fact that that tiny "extra reward" prompts many people to spend more than they previously did, negating any actual benefit. Like the person on myfico who claimed he maxed out his Cash+ fast food...like, if you're spending 2k in 3 months on fast food alone, I think you need to stop eating 3 meals a day at Mcdonald's! It's not like he said he used fast food and another category and hit the cumulative maximum -- nope, fast food spending of 2k in a quarter. Plus he has an AARP that he "gets a lot of use out of". Yet his Sallie Mae is also "beloved" for the groceries...how can someone eat out that much AND buy that much in groceries? Overspending for rewards and following the myfico crowd, methinks.

More relevant to this specific point, he also says he wants a mortgage in the next year. So the opportunity cost of applying for 6-7 cards in the past 2 months for pennies in extra rewards will likely be that he'll face a higher mortgage rate which will force him to pay for those rewards many times over. Smart logic, eh?


The one that kills me the most is "better get in with AMEX". Like really you just applied for a card of no real world use to you because you wanted to be "in". It's something that folks post over there a lot and I don't get it at all.

Like I hope just being "in" with Amex was worth paying higher interest on that new house or car.

Nixon
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Re: December 2015 Garden Club

Postby Nixon » Thu Dec 17, 2015 9:18 pm

AMEX used to be worth getting In with early because of backdate.
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kdm31091
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Re: December 2015 Garden Club

Postby kdm31091 » Thu Dec 17, 2015 9:28 pm

It's not even just with amex. Many times a day over there you read "I want to be in with Barclays! I'm finally in with Citi!"

What real world, practical thing does that accomplish? Why does it matter? Go for the cards/lenders that suit your needs. No more no less. If Citi has nothing that interests you, why get a card from them just to be "in"? Besides the fact that there's zero clear evidence that being "in" makes any difference whatsoever for later approvals. My feelings are if your credit file supports approval for a given card, you'll get it whether you have a history with the lender or not. When your credit is pulled for the new card, the lender sees ALL history, not just history with them.

So yes, I find the "in with ___" thing incredibly silly and seems to be mostly a matter of serving OCD tendencies than anything else at this point (people just want "to be in" with every major lender for no real reason other than to have a "complete portfolio" etc). Being "in" is pretty much arbitrary and meaningless; like stated earlier, credit cards are just tools, nothing to get emotional about or worry about "relationships" because trust me, to the lenders we are all just a number.

Nixon
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Re: December 2015 Garden Club

Postby Nixon » Thu Dec 17, 2015 9:41 pm

I just want in with Citi for those sweet sweet AA miles they are bogarting from me. Lol.
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RewardsHunter17
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Re: December 2015 Garden Club

Postby RewardsHunter17 » Thu Dec 17, 2015 10:50 pm

Yeah, I have to say, I'm in the garden for the time being. It's time to let my new accounts age and for my FICOs to hit the 700s where they need to be. :lift:

RewardsHunter17
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Re: December 2015 Garden Club

Postby RewardsHunter17 » Thu Dec 17, 2015 11:21 pm

kdm31091 wrote:
Vermonster wrote: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.


Exactly, and I'm glad the people on this forum understand this concept far far better than the myfico sheep who open that AARP for the extra 1% every day. It's not even so much they make the choice to chase the rewards -- that's fine if that's what they want to do, although I think it's foolish -- but the bigger problem is that NOBODY ever points out any of the potential pitfalls or long term consequences. It's always: "Your score is good enough! The prequal is golden! Chase loves ____!" You'll be fine! 3% dining is awesome!"...and nothing else. While I get that it's not up to a community to be someone's financial advisor, it still seems that rewards of piddling value are placed about literally everything else. A newcomer on there can't really make an informed decision when the only responses are "did you app yet? The bonus is great!" etc

There's also the fact that that tiny "extra reward" prompts many people to spend more than they previously did, negating any actual benefit. Like the person on myfico who claimed he maxed out his Cash+ fast food...like, if you're spending 2k in 3 months on fast food alone, I think you need to stop eating 3 meals a day at Mcdonald's! It's not like he said he used fast food and another category and hit the cumulative maximum -- nope, fast food spending of 2k in a quarter. Plus he has an AARP that he "gets a lot of use out of". Yet his Sallie Mae is also "beloved" for the groceries...how can someone eat out that much AND buy that much in groceries? Overspending for rewards and following the myfico crowd, methinks.

More relevant to this specific point, he also says he wants a mortgage in the next year. So the opportunity cost of applying for 6-7 cards in the past 2 months for pennies in extra rewards will likely be that he'll face a higher mortgage rate which will force him to pay for those rewards many times over. Smart logic, eh?


I'm sorry, KDM, but this post just isn't true.

In the US Bank Cash+ thread, I said explicitly that 85% of my spending was on cell phone (post #24) and not fast food. As you just stated above that I posted that my spending was all from fast food and not another category, you are making a categorically false statement. I said that nowhere in that thread, nor anywhere else.
http://ficoforums.myfico.com/t5/Credit- ... 6#M1238566

Furthermore, I said explicitly in a separate thread my personal life circumstances had changed quite a bit from when I made my post about seeking a mortgage and that I would not be seeking a mortgage within a year after all. You, in fact, acknowledged that I was not going to be getting a mortgage within a year in post #20, so this is another categorically false statement.

Here is the thread:
http://ficoforums.myfico.com/t5/Credit- ... 513/page/2

I would ask that you please be truthful in your representations in the future.

Nixon
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Re: December 2015 Garden Club

Postby Nixon » Thu Dec 17, 2015 11:36 pm

RewardsHunter17 wrote:
kdm31091 wrote:
Vermonster wrote: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.


Exactly, and I'm glad the people on this forum understand this concept far far better than the myfico sheep who open that AARP for the extra 1% every day. It's not even so much they make the choice to chase the rewards -- that's fine if that's what they want to do, although I think it's foolish -- but the bigger problem is that NOBODY ever points out any of the potential pitfalls or long term consequences. It's always: "Your score is good enough! The prequal is golden! Chase loves ____!" You'll be fine! 3% dining is awesome!"...and nothing else. While I get that it's not up to a community to be someone's financial advisor, it still seems that rewards of piddling value are placed about literally everything else. A newcomer on there can't really make an informed decision when the only responses are "did you app yet? The bonus is great!" etc

There's also the fact that that tiny "extra reward" prompts many people to spend more than they previously did, negating any actual benefit. Like the person on myfico who claimed he maxed out his Cash+ fast food...like, if you're spending 2k in 3 months on fast food alone, I think you need to stop eating 3 meals a day at Mcdonald's! It's not like he said he used fast food and another category and hit the cumulative maximum -- nope, fast food spending of 2k in a quarter. Plus he has an AARP that he "gets a lot of use out of". Yet his Sallie Mae is also "beloved" for the groceries...how can someone eat out that much AND buy that much in groceries? Overspending for rewards and following the myfico crowd, methinks.

More relevant to this specific point, he also says he wants a mortgage in the next year. So the opportunity cost of applying for 6-7 cards in the past 2 months for pennies in extra rewards will likely be that he'll face a higher mortgage rate which will force him to pay for those rewards many times over. Smart logic, eh?


I'm sorry, KDM, but this post just isn't true.

In the US Bank Cash+ thread, I said explicitly that 85% of my spending was on cell phone (post #24) and not fast food. As you just stated above that I posted that my spending was all from fast food and not another category, you are making a categorically false statement. I said that nowhere in that thread, nor anywhere else.
http://ficoforums.myfico.com/t5/Credit- ... 6#M1238566

Furthermore, I said explicitly in a separate thread my personal life circumstances had changed quite a bit from when I made my post about seeking a mortgage and that I would not be seeking a mortgage within a year after all. You, in fact, acknowledged that I was not going to be getting a mortgage within a year in post #20, so this is another categorically false statement.

Here is the thread:
http://ficoforums.myfico.com/t5/Credit- ... 513/page/2

I would ask that you please be truthful in your representations in the future.


Sup, Jay?

You've got to admit, MyFICO has gotten unbearable since I left. :p
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RewardsHunter17
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Re: December 2015 Garden Club

Postby RewardsHunter17 » Thu Dec 17, 2015 11:43 pm

Nixon wrote:
RewardsHunter17 wrote:
kdm31091 wrote:Exactly, and I'm glad the people on this forum understand this concept far far better than the myfico sheep who open that AARP for the extra 1% every day. It's not even so much they make the choice to chase the rewards -- that's fine if that's what they want to do, although I think it's foolish -- but the bigger problem is that NOBODY ever points out any of the potential pitfalls or long term consequences. It's always: "Your score is good enough! The prequal is golden! Chase loves ____!" You'll be fine! 3% dining is awesome!"...and nothing else. While I get that it's not up to a community to be someone's financial advisor, it still seems that rewards of piddling value are placed about literally everything else. A newcomer on there can't really make an informed decision when the only responses are "did you app yet? The bonus is great!" etc

There's also the fact that that tiny "extra reward" prompts many people to spend more than they previously did, negating any actual benefit. Like the person on myfico who claimed he maxed out his Cash+ fast food...like, if you're spending 2k in 3 months on fast food alone, I think you need to stop eating 3 meals a day at Mcdonald's! It's not like he said he used fast food and another category and hit the cumulative maximum -- nope, fast food spending of 2k in a quarter. Plus he has an AARP that he "gets a lot of use out of". Yet his Sallie Mae is also "beloved" for the groceries...how can someone eat out that much AND buy that much in groceries? Overspending for rewards and following the myfico crowd, methinks.

More relevant to this specific point, he also says he wants a mortgage in the next year. So the opportunity cost of applying for 6-7 cards in the past 2 months for pennies in extra rewards will likely be that he'll face a higher mortgage rate which will force him to pay for those rewards many times over. Smart logic, eh?


I'm sorry, KDM, but this post just isn't true.

In the US Bank Cash+ thread, I said explicitly that 85% of my spending was on cell phone (post #24) and not fast food. As you just stated above that I posted that my spending was all from fast food and not another category, you are making a categorically false statement. I said that nowhere in that thread, nor anywhere else.
http://ficoforums.myfico.com/t5/Credit- ... 6#M1238566

Furthermore, I said explicitly in a separate thread my personal life circumstances had changed quite a bit from when I made my post about seeking a mortgage and that I would not be seeking a mortgage within a year after all. You, in fact, acknowledged that I was not going to be getting a mortgage within a year in post #20, so this is another categorically false statement.

Here is the thread:
http://ficoforums.myfico.com/t5/Credit- ... 513/page/2

I would ask that you please be truthful in your representations in the future.


Sup, Jay?

You've got to admit, MyFICO has gotten unbearable since I left. :p


Hey Nixon!

Yeah, myFICO has definitely not been nearly as exciting since you left, no doubt about that. You were too "edgy" for myFICO, I think, which is a shame, because I think a little edginess is exactly what that stuffy forum needs.

Still, not sure why I was the scapegoat for completely false information from KDM. Hopefully, he learns a little lesson in truthfulness.



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