Approved for both CSP and Cash+ ...now what?

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wiivile
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Approved for both CSP and Cash+ ...now what?

Postby wiivile » Fri Nov 22, 2013 9:19 am

I'm 26, and still kind of a newbie to this credit card thing.

The Chase Freedom was my first credit card, originally with a $1000 credit limit in 2009 and now that I've been using it for four years it has a $3200 credit limit. I needed more credit though, as I've been spending a lot more since 2009 (particularly on restaurants since I eat out every night and restaurants make up for at least 60% of my spending). I've been approaching 70% credit utilization every month on the Freedom (not good, but I've been paying it off before the statement closes so as to not damage my credit scores). So I decided that I needed to apply for another credit card. Shouldn't be a problem, since my FICO scores are all in the mid 700s.

Since I Have 111,000 UR points saved up after four years on my Freedom, and the Chase Sapphire Preferred offers the best redemption options for UR points (as well as a 40,000 point bonus), I wanted the CSP. However, since I only average $12K-$15K annual spend, and I wasn't sure that this was enough to justify the $95 annual fee - other cards with no AF may be more rewarding, particularly the U.S. Bank Cash+. Since the Cash+ offers 5% back on restaurants (up to $2,000 per quarter, and I do spend around $2,000 per quarter on restaurants), I could get at least $400 cash back every year (plus the rest of its 2% and 1% bonuses) with no annual fee. Even with the awesome redeption options of the CSP, I don't think it can top getting $400-$500+ cash back every year with no annual fee on only $12K-$15K spend.

Since I couldn't decide between the CSP and the Cash+, I applied for and was approved for both the CSP (12K credit limit, which quintupled my overall credit limit from $3200 to $15200!) and the Cash+ (credit limit to be determined), but now I can't decide which card is the "keeper". Obviously I want to spend $2,000 within the first 3 months on my CSP in order to qualify for the 40,000 point bonus, but after that, the Cash+ is probably going to be more lucrative to me because of the year-round 5% on restaurants, which makes up most of my spend

After qualifying for the 40,000 point bonus, should I put the CSP in a sock drawer and just use the Cash+ as my everyday card, then cancel the CSP before the Annual Fee hits and transfer its $12K credit limit to the Freedom? If so, what should I do with my 150K+ UR points?

Did I make a mistake applying for both the CSP and Cash+ when I couldn't decide? Does it look bad to have three credit cards (and applying for two at the same time)?

I know this is a long post but I appreciate any advice you credit gurus can provide...
    Chase Sapphire Preferred Visa Signature: 11/2013, $15,000 CL
    Chase Freedom Visa: 11/2009, $4,700 CL
    U.S. Bank Cash+ Visa Signature: 11/2013, $11,200 CL


MemberSince99
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Postby MemberSince99 » Fri Nov 22, 2013 9:34 am

No you didn't make a mistake. They are both good cards and offer different reward structures and should work well all 3 of them together when combined with your Freedom card.

Set your quarterly rewards categories on the Cash + to whatever best suits your spending and isn't covered with the other two cards, then just use the card that is appropriate. This gives you a lot more flexibility.

US Bank may well give you an auto CLI on your Cash + after two statements. I used mine heavily (3600 in one month) and PIF, and they upped it from 12k to 14k automatically after 2 months.

I don't think you made a mistake I think you should just relax and enjoy your cards. People, myself included, spend way too much time second guessing everything in their lives and it's just a waste of time. I think you did very well now enjoy it rather than sit around questioning.

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jumbo
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Postby jumbo » Fri Nov 22, 2013 9:48 am

MemberSince99 wrote:People, myself included, spend way too much time second guessing everything in their lives and it's just a waste of time.


I second that.
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wiivile
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Postby wiivile » Fri Nov 22, 2013 9:54 am

I just don't think both cards are keepers, since I would have to put all of my spending on the CSP in order to justify the annual fee. But the Cash+ is more lucrative since 5% cash back year round on restaurants can't be beat. Do you really think I should keep both after a year? If so how can I justify the annual fee of the CSP if I'm putting my spending on the Cash+?
    Chase Sapphire Preferred Visa Signature: 11/2013, $15,000 CL
    Chase Freedom Visa: 11/2009, $4,700 CL
    U.S. Bank Cash+ Visa Signature: 11/2013, $11,200 CL

Obi-dan
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Postby Obi-dan » Fri Nov 22, 2013 9:58 am

wiivile wrote:I just don't think both cards are keepers, since I would have to put all of my spending on the CSP in order to justify the annual fee. But the Cash+ is more lucrative since 5% cash back year round on restaurants can't be beat. Do you really think I should keep both after a year? If so how can I justify the annual fee of the CSP if I'm putting my spending on the Cash+?


I think you just answered your own question. You need to do what you think works best for you, not anyone else. You can certainly ask about strategies but ultimately, it's your wallet. You have a year. Try it out and make your decision then.
Cards:
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)


FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)

MemberSince99
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Postby MemberSince99 » Fri Nov 22, 2013 10:01 am

Agree with Obi-dan. The 400 bonus if you get it will more than cover the annual fee for the first year. You've already taken the damage that can't be undone. Keep it and re-evaluate whether you want it before the second year annual fee is due. If you find you can't justify the fee, close it.

Of course you're free to do whatever you want it's your life and your credit, but the above should make sense.

wiivile
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Postby wiivile » Fri Nov 22, 2013 10:17 am

MemberSince99 wrote:Agree with Obi-dan. The 400 bonus if you get it will more than cover the annual fee for the first year. You've already taken the damage that can't be undone. Keep it and re-evaluate whether you want it before the second year annual fee is due. If you find you can't justify the fee, close it.

Of course you're free to do whatever you want it's your life and your credit, but the above should make sense.



I definitely don't regret applying for the CSP, because the $12K credit line will help immensely even if I decide to close the account after the year and move the credit line to my Freedom (I will never close the Freedom, just because it's my card with the most credit history). I'm just unsure what card to put my spending on (it only makes sense to me to put my spending all on one card).

Also, do you think that even though I took two hard pulls at the same time, my credit score will actually increase as a result of these approvals because my credit limit went from $3200 to over $15K?
    Chase Sapphire Preferred Visa Signature: 11/2013, $15,000 CL
    Chase Freedom Visa: 11/2009, $4,700 CL
    U.S. Bank Cash+ Visa Signature: 11/2013, $11,200 CL

Obi-dan
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Postby Obi-dan » Fri Nov 22, 2013 10:25 am

wiivile wrote:Also, do you think that even though I took two hard pulls at the same time, my credit score will actually increase as a result of these approvals because my credit limit went from $3200 to over $15K?


Yes, you should see a rise after reporting in your score. Credit utilization makes up 30% of you FICO score. Inquiries only make up 10% and two inquiries are not excessive.
Cards:
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)


FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)

MemberSince99
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Location: WI

Postby MemberSince99 » Fri Nov 22, 2013 11:22 am

Obi-dan wrote:Yes, you should see a rise after reporting in your score. Credit utilization makes up 30% of you FICO score. Inquiries only make up 10% and two inquiries are not excessive.


You must not read MyFICO. If you join their cult you will learn that two inquiries is pretty much considered a crime against humanity.

wiivile
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Postby wiivile » Fri Nov 22, 2013 11:49 am

MemberSince99 wrote:You must not read MyFICO. If you join their cult you will learn that two inquiries is pretty much considered a crime against humanity.

Haha I'll post there too and see if they have that reaction...
    Chase Sapphire Preferred Visa Signature: 11/2013, $15,000 CL
    Chase Freedom Visa: 11/2009, $4,700 CL
    U.S. Bank Cash+ Visa Signature: 11/2013, $11,200 CL



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