- Centurion Member
- Posts: 151
- Joined: Mon Apr 22, 2013 10:05 pm
- Location: New York, NY
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