US Bank Rewards Card Product Change

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macuserman
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Re: US Bank Rewards Card Product Change

Postby macuserman » Thu Apr 14, 2016 9:46 am

Whew lots of input! I really do appreciate it though because I'm new to caring about this stuff. Late to the game I fear, but hopefully not too late.

takeshi wrote:It's all going to depend on what your credit profile qualifies for. Work on improving identifying and addressing the issues on your reports and you'll get there.


Regarding my credit profile the two things on there that were pulling it down for me were high utilization and my age of credit history average is only 9 years. Everything else shows no problems.

takeshi wrote:You don't lose it. Closed accounts in good standing typically continue to appear on reports for 10 years and will factor into AAoA as long as they are on reports.


I didn't realize this I may just close this account then.


takeshi wrote:Hard pulls typically have little impact. If you're seeing bigger impact from a hard pull then it's not the hard pull that's the problem -- you have bigger issues with your credit profile that you need to address. Hard pulls have a bigger impact for those with thin profiles and/or profiles with issues. Don't just avoid hard pulls. Again, identify the issues with your credit profile and work on addressing them. Your sub 700 scores indicate that there are items that you need to work on, if possible.


I'm not really expecting any big impact from a hard pull I think my chase sapphire inquiry dipped me 4 points or something. Not a huge deal

takeshi wrote:A year should give you plenty of time to recover from the short term negative impacts if you app now.


Awesome, that's what I thought. Although I may just see if I can have my wife get the card instead(if she can get approved) and not worry about it since I'm mainly just after an active card I can use for travel rewards. Transferring points from her freedom card shouldn't be a problem if I understand correctly esp if she adds me as an authorized user. Sounds to me like getting her as an account owner not just an authorized user on a credit card right way is a good idea anyways.

takeshi wrote:That said, if your revolving utilization is high you shouldn't be applying. What is your revolving utilization at?

It was quite high around 90% I believe, I had a couple of credit cards the us bank card, scammers credit card(don't ask), and a amazon rewards card. All were maxed out from when I was a college student and struggling to make ends meet. I graduated a year and a half ago and I have just been paying the minimum on the accounts because I didn't feel financially secure. I've had a real job now for about a year earning actual income and I am feeling more comfortable and starting to look towards the future instead of just surviving month to month.

This month so far I've paid off 3,500 or so of my debt, which only leaves me with 1,200 left which is on my US Bank card which I plan to pay of this month, but I'm waiting till next pay check. So my utilization after April will be 0%. Although I think I may get some small amount of utilization for using the sapphire card because I'm running all my purchases through it as a debit card for the rewards points.

takeshi wrote:She needs to establish account ASAP and that's going to be difficult if she has nothing on her reports (don't conflate account and report -- they're entirely different things) as she will need to gradually add accounts as her credit profile allows. You may need to reconsider your 1 year timeframe for a mortgage unless you can qualify on your own.


Her score is around 650 I think according to credit karma, I know not the best source I haven't had time to pull a real one for her yet. I got mine from myfico.com. I'm going to see if I can get her to apply for a card right away probably this week and see what happens.

I'm not sure how accurate the myfico simulator thing is, but it seems to think that my scores will be high 700, possibly low or just barely 800 if I get rid of my utilization problem. I know I should have paid these off sooner instead of just paying the minimum. I haven't made any new charges to those accounts since I graduated, but I just felt more comfortable with the cash in the bank since my income in the past was unstable.


Kevin86475391
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Re: US Bank Rewards Card Product Change

Postby Kevin86475391 » Thu Apr 14, 2016 10:27 pm

Congrats on your progress so far! It sounds like you've made some good progress, especially recently.

With that said, I would probably reconsider the 1 year timeline for the mortgage. It sounds like you and your wife are still fairly early on in your credit journey and while you may be able/probably could qualify for a mortgage of some kind after 1 year, it may not be in your best interest to actually get it since the rates will likely be much higher than you could qualify for if you held out for 2 or 3 years instead - and in the process saved more money and built more financial security.

On the other hand it may be something you want to do if you only plan to keep the house for a few years or plan to refinance fairly soon after getting it. I'd just personally probably wait to qualify for better rates.

Regardless, definitely focus on establishing credit for your wife and building your own.

As far as the US Bank things goes, I'm in sort of a similar situation. I got their Cash Rewards years ago without realizing just how subpar the rewards structure is compared to many other cards. As a result I haven't really used it very much and, since I got it so long ago, I have a laughably low limit on it compared to my other cards. I asked once about upgrading to the Cash+ several months back but was told the same thing you were - no offers for that on my account, but why don't I just apply for a new card. For me it's just not really worth it. The Cash+ is better than the Cash Rewards card but still nothing special compared to my other cards. Honestly, I tend to just use it for purchases I feel less secure about. If I think there's any chance of fraud or data insecurity, that's my go-to card since it has the lowest limit and I don't use it for anything else.

I have considered closing it and may still ultimately decide to do so. As Takashi pointed out it will stay on your report for 10 years after closing, so any drop in AAOA is 10 years away and will of course be mitigated by an additional 10 years of history on all your current accounts.

Anyway, best of luck!

macuserman
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Re: US Bank Rewards Card Product Change

Postby macuserman » Fri Apr 15, 2016 9:03 am

Kevin86475391 wrote:With that said, I would probably reconsider the 1 year timeline for the mortgage. It sounds like you and your wife are still fairly early on in your credit journey and while you may be able/probably could qualify for a mortgage of some kind after 1 year, it may not be in your best interest to actually get it since the rates will likely be much higher than you could qualify for if you held out for 2 or 3 years instead - and in the process saved more money and built more financial security.


Yeah, I would prefer as soon as possible, my rent is 1,250 a month atm which is cheap for where I live, and so I'd love to be putting that towards a house instead of just tossing it out. I guess my game plan is just to see where things are next year and if I have to wait a little longer I will. But at least at this point I'm actively working towards it in every way that I possibly can.

Kevin86475391 wrote:As far as the US Bank things goes, I'm in sort of a similar situation. I got their Cash Rewards years ago without realizing just how subpar the rewards structure is compared to many other cards. As a result I haven't really used it very much and, since I got it so long ago, I have a laughably low limit on it compared to my other cards. I asked once about upgrading to the Cash+ several months back but was told the same thing you were - no offers for that on my account, but why don't I just apply for a new card. For me it's just not really worth it. The Cash+ is better than the Cash Rewards card but still nothing special compared to my other cards. Honestly, I tend to just use it for purchases I feel less secure about. If I think there's any chance of fraud or data insecurity, that's my go-to card since it has the lowest limit and I don't use it for anything else.

I have considered closing it and may still ultimately decide to do so. As Takashi pointed out it will stay on your report for 10 years after closing, so any drop in AAOA is 10 years away and will of course be mitigated by an additional 10 years of history on all your current accounts.


I'm really thinking I might just close it, the only thing holding me back is I heard that I might be able to add my wife as an account owner on that account and it would help boost her credit score age of history and things like that? Not sure but I'd like to look into it a little bit more before I close it. I did go ahead and have her apply for the freedom card (not unlimited), and she was instantly approved for 4,500 so that is progress. Hopefully if she uses it just for groceries or something every month whatever the category is it will start helping to boost her score.

beef.stu
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Re: US Bank Rewards Card Product Change

Postby beef.stu » Mon Apr 25, 2016 3:14 am

Just curious OP, why would you want the Freedom over the Cash+?

To me the Cash+ seems to have the better rewards structure and I have been considering applying for it soon
(01/10) - Wells Fargo VISA Platinum
(05/10) - Techron Advantage
(10/12) - Amex BCE
(02/13) - Chase Freedom VISA
(09/13) - Discover It
(03/14) - Sallie Mae WMC
(09/15) - Citi Double Cash WEMC
(09/16) - US Bank Cash+ VISA Signature

macuserman
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Re: US Bank Rewards Card Product Change

Postby macuserman » Tue Apr 26, 2016 9:19 am

beef.stu wrote:Just curious OP, why would you want the Freedom over the Cash+?

To me the Cash+ seems to have the better rewards structure and I have been considering applying for it soon



I might be a little late on this, but to answer you question. Simply, because I'd prefer to have Ultimate rewards, and with my CSP card I can convert and roll over all the points into one system. Personally, I'm not really interested in cash back, I'm more interested in the travel rewards which I can get with my CSP card. Now that my wife has regular freedom card, with me as an AU, I'm even more interested in the freedom unlimited to get the 1.5 points per dollar on all my normal purchases. I'm going to wait till after I meet the spending requirements to get the sign on bonuses for my CSP and my wifes new freedom card to apply though. After that I don't plan to open any new cards or anything, I'm trying to clean up my accounts and get things in order.

I think my plan atm after I apply for the freedom unlimited is to go ahead and close my amazon rewards card, and apply to add my wife as an account owner on my US Bank Rewards card and just leave it open with a zero balance to boost her credit score. I just closed the other two crappy credit cards I had, so that will leave me with CSP, FU, U.S. Bank Rewards, and an AU on CF.

macuserman
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Re: US Bank Rewards Card Product Change

Postby macuserman » Thu May 05, 2016 3:15 pm

I'm making progress!!! It's not huge, but I'm still excited. My scores were (678 Eqfx, 694 Trans, 729 Exp) when I started and they just bumped up to (704 Eqfx, 716 Trans, 747 Exp) that's a gain of 26 points on Eqfx, 22 points on Trans, and 18 points on Exp.

They still need some work for sure, but it's exciting to see progress. I wasn't able to pay off all of my debt this past month like I had planned so I only ended up getting it down to 30% utilization. So that will have to wait for this month, if I can get down to 0 on my last credit card then the only thing showing will just be the small utilization on my CSP every month.

macuserman
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Re: US Bank Rewards Card Product Change

Postby macuserman » Wed Oct 12, 2016 11:18 am

I just wanted to post an update on this. I was able to get my debt down to zero and then armed with my improved credit scores we were able to approved for a mortgage. We closed on our first house on the 20th of september, and it is awesome! I'm so glad we aren't renting anymore.

On the credit card front I had really been wanting the freedom unlimited so that I can get the 1.5 percent back. I got the CSP and it is awesome, but there are a lot of times when I'm only getting 1 point per dollar. The freedom card my wife got is awesome, but I find that there are times when the categories aren't good for us, such as the department store category which goes till the end of this year and we never shop at department stores. I wasn't sure how long I should wait, but I figured what the heck and I applied for the unlimited today. I was very surprised that they came back with 9,000 CL and 14% APR, when I got the CSP I only got a 5,000 CL and the highest APR. I'm very happy with that I wasn't sure if I would even get approved, I'm probably done applying for quite awhile I need to let things settle down and get our nest egg built back up.

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Vattené
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Re: US Bank Rewards Card Product Change

Postby Vattené » Thu Oct 13, 2016 11:10 am

That's great news, congrats on your progress :cheers: I bought a house a little over a year ago and while I never had any major problems with a landlord I really like having a place of my own. Having a CSP and a FU as your main cards can earn you some serious UR. Hope you like the new card, and you enjoy home ownership!
-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



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