Credit non-priorities

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CarefulBuilder14
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Credit non-priorities

Postby CarefulBuilder14 » Tue Apr 12, 2016 10:11 pm

What did you used to care about when it comes to credit that you don't care about anymore? As for myself...

1. Permanent APR reductions (but not temporary 0% ones). I'll carry a small balance at 0%, but I'm no more likely to carry a balance at 17.99% than 19.99%. Even if I tried to negotiate APRs down over the course of several years, it would be hard to get below 9.99% on my rewards cards, and I'd want around 4.99% to think about carrying a balance.

2. CLIs. I spread my spending across several cards, and I have an Amex charge card (well, two, but I'll close PRG soon) for anything big.

3. Getting Signature/World upgrades on cards that get "unexciting" spend. Generally overrated (compared to benefits/perks on AF travel cards) and most benefits have some catch or limitation.

WEMC on AA Platinum may conceivably be of value, since I might want some benefit (though I can't think offhand of what) in combination with price rewind and an extended warranty on a large purchase. I certainly don't need WMC perks on a gas/grocery/Amazon gift card Sallie Mae, though, so my Platinum MC is fine.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red


Nixon
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Re: Credit non-priorities

Postby Nixon » Wed Apr 13, 2016 5:05 am

Non promo APR.

Although it's nice to have your creditworthiness validated by a low APR.
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kdm31091
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Re: Credit non-priorities

Postby kdm31091 » Wed Apr 13, 2016 7:23 am

I have to agree with the APR reduction thing. It makes us feel good when the card issuer values our business and lowers the APR, but if we're talking about for actually using, almost none of the rewards cards go low enough to want to carry a balance on. So reductions feel nice but have no real practical impact most of the time.

I used to care more about Visa Signature/WMC/ getting upgraded until I realized that it was mostly a waste of time. There are certain situations where the benefits may be useful but I haven't encountered any of them! I spent more time hassling to get cards upgraded vs actually using a benefit which is the first clue that it isn't worth caring about.

Also don't care so much about maximizing rewards in so much detail as in "this card for this purchase, that card for that". I still do it when the difference is large, of course, but otherwise, meh. Usually, the difference is pennies, and the more cards you use, the more bills you have to pay. I like to keep things more centralized, even if I give up maybe a dollar in rewards. Also no longer have interest in adding card after card for tiny gains.

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CarefulBuilder14
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Re: Credit non-priorities

Postby CarefulBuilder14 » Wed Apr 13, 2016 12:31 pm

Another is AAoA. I'm not saying it's meaningless to me, but I'm less interested in trying to maximize it by limiting apps and keeping cards of no clear value open. If opening and closing accounts means my AAoA only rises by 7 or 8 months over the course of a year, I'm fine with that.

I am glad that my oldest accounts are Freedom and It, and not some garbage cards that are going to be sockdrawer zombies.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

kdm31091
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Re: Credit non-priorities

Postby kdm31091 » Wed Apr 13, 2016 2:52 pm

I think AAOA is generally overblown. It's only 15 percent of one's score, yet people are kept prisoner to useless, crap cards because they are terrified of harming their AAOA in a decade.

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CarefulBuilder14
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Re: Credit non-priorities

Postby CarefulBuilder14 » Wed Apr 13, 2016 2:56 pm

kdm31091 wrote:I think AAOA is generally overblown. It's only 15 percent of one's score, yet people are kept prisoner to useless, crap cards because they are terrified of harming their AAOA in a decade.

It's how Capital One makes a lot of its AF revenue.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

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Re: Credit non-priorities

Postby Tubpbs » Wed Apr 13, 2016 5:23 pm

I would agree with everything you guys have said. I think I still pay attention to some of these things, with the exception of the APR, but I don't actually care.

For example, I want my Double Cash to be WEMC but I don't actually care... To the point that I probably won't call for several months again or ever to try for the upgrade.

I also agree with the AAoA comments, though I think part of its relevance to some of us is because we're "young" in the credit world. I think in another 3-5 years it won't matter how many cards we add or delete each year... I personally try to get only long term cards and have so far, but that may be changing soon.

CarefulBuilder, just thinking, with the recent (and future) changes to your card line up, you're pretty much abandoning earning MRs no? Am I missing something in the plan?

I know the EDP / ED thing was semi out of your hands and was heavily dependent on the Costco changes. Is that also right?
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

4ktvs
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Re: Credit non-priorities

Postby 4ktvs » Wed Apr 13, 2016 6:20 pm

I guess getting a CLI and worrying about getting all the cards around the same CL.

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CarefulBuilder14
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Re: Credit non-priorities

Postby CarefulBuilder14 » Wed Apr 13, 2016 6:37 pm

Tubpbs wrote:CarefulBuilder, just thinking, with the recent (and future) changes to your card line up, you're pretty much abandoning early good MRs no? Am I missing something in the plan?

I know the EDP / ED thing was semi out of your hands and was heavily dependent on the Costco changes. Is that also right?

I'm not abandoning the points. ED and Schwab also earn MRs and will keep the current pool alive. They don't earn MREs or anything like that. I'll just be earning MRs at a much slower rate.

I try to find a middle ground between doing what's very easy and doing what's very lucrative. It's easy and lucrative to earn a lot of cash and miles through credit card bonuses and brokerage promotions. It was fairly easy and moderately lucrative to get two or three $1 Amazon gift card reloads near the end of a month when I'd put some big purchases on EDP but hadn't quite reached 30 transactions.

But without the Costco spend and transaction count, I'd have to put far more "manufactured" transactions on EDP and it would be for a reduced bonus on my smaller base amount of "genuine" spend. Just not worth it, so I'll save myself the AF.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

Tubpbs
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Re: Credit non-priorities

Postby Tubpbs » Wed Apr 13, 2016 8:28 pm

CarefulBuilder14 wrote:
Tubpbs wrote:CarefulBuilder, just thinking, with the recent (and future) changes to your card line up, you're pretty much abandoning early good MRs no? Am I missing something in the plan?

I know the EDP / ED thing was semi out of your hands and was heavily dependent on the Costco changes. Is that also right?

I'm not abandoning the points. ED and Schwab also earn MRs and will keep the current pool alive. They don't earn MREs or anything like that. I'll just be earning MRs at a much slower rate.

I try to find a middle ground between doing what's very easy and doing what's very lucrative. It's easy and lucrative to earn a lot of cash and miles through credit card bonuses and brokerage promotions. It was fairly easy and moderately lucrative to get two or three $1 Amazon gift card reloads near the end of a month when I'd put some big purchases on EDP but hadn't quite reached 30 transactions.

But without the Costco spend and transaction count, I'd have to put far more "manufactured" transactions on EDP and it would be for a reduced bonus on my smaller base amount of "genuine" spend. Just not worth it, so I'll save myself the AF.



Well that's pretty much what I meant. You said it better. I didn't mean you were going to let the points you'd already earned disappear or expire. I just meant you won't be earning at a significant rate and won't be MR focused like it seems you've been for quite a while / when you were using EDP heavily and consistently.
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It



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