Trimming my list of cards. Your take on it?

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Xorand
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Trimming my list of cards. Your take on it?

Postby Xorand » Thu Mar 13, 2014 1:40 pm

Hi. New-ish member and have begun doing some changes to my CC portfolio. Here's some history. In 2009, we had a credit score in the mid-500's, living paycheck-to-paycheck on way more money than one would expect. Just sloppy bookkeeping and keeping up with the Joneses.

Fast-foward to today. We are debt-free except for one vehicle. We are getting ready to sell our (paid off) home and have been living and traveling full-time in our RV for almost 1.5 years now. Latest check on our FICO showed us around 765-780. We pay off our cards every month, mainly using them to take advantage of various perks and cash back offers. Also, the additional security of having multiple lines of credit when you are constantly on the road is almost critical in today's society.

Here's our current portfolio of CCs, oldest to newest:

Capital One Platinum - 5250 limit, 2003
Capital One Platinum (previously Orchard Bank) - 2000 limit, 2005
Home Depot - 2200 limit, recently closed, 2006
Capital One Cash Back - 2250 limit, 2011
Paypal Mastercard tied to account, no physical card - 600 limit, recently closed, 2011
AmEx BCP - 11500 limit, 2013
Chase Freedom - 5500 limit, 2013
AmEx Gold Delta SkyMiles - 8500 limit, 2014
Disney Visa (Chase) - 7000 limit, 2014

I don't anticipate needing much in the way of credit soon (i.e. buying a house, etc.), so keeping scores high is not a prime concern at the moment, but want to keep them in the same area they are now (upper 700's or better) for the long term.

Thinking of dropping the two lower limit CapOne cards and keeping the first one, since it is the oldest. We pretty much recently have shelved that one and use it only occasionally to show some activity. Our primary go-to card is the BCP since fuel is generally our biggest monthly expense, followed by groceries.

We primarily want to have at least two high-limit (i.e. 5000+) non-AmEx cards. A recent example why is that my wife had to have surgery and we have a $5,000 deductible health policy. Her doctor wouldn't take AmEx, so we pulled the higher limit CapOne out of mothballs to pay the bill. No cash-back, etc., but it tied up a good chunk of non-AmEx credit line (we're also purchasing big ticket items to get our house ready to sell, like carpet, etc. and didn't have either of the Chase cards yet).

That plan would leave us with 17,750 in non-AmEx credit and 20k in AmEx. Only the two Chase cards do not have annual fees. The other cards have fees ranging from $39 a year (the old Orchard card) to $95 a year (the gold AmEx). The benefits from the two AmEx cards greatly outweigh their yearly fees, though.

My thinking of keeping the oldest card is to keep that age of accounts thing higher.

Thoughts?
AmEx - Platinum (NPSL) , Blue Cash Preferred ($19,000), Gold Delta Skymiles ($8,500)
Chase - Sapphire Preferred ($14,000), Disney ($11,500), Amazon.com ($9,000), Freedom ($8,000)
CapOne - QuickSilver ($7,250) / Platinum Rewards ($7,250)


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djrez4
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Postby djrez4 » Thu Mar 13, 2014 4:23 pm

I think you've thought it through well and made the right choices.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]

linuxmachine
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Postby linuxmachine » Thu Mar 13, 2014 4:24 pm

is there anything you want besides delta airline and gas/grocery perks? are you interested in using points for hotel stays? accruing more delta miles? maximize your cash back? there's a lot you could do, but not enough information to provide more useful input.

i think you should cancel all your fee cards that you don't use. keep the no fee ones around so you don't have to cancel all of them at once. add one or two more that could provide you some benefit. For instance, sallie mae has 5% cash back up to 250/month on gas and groceries. You could use that as your gas card when Chase does not have its gas promo for a little extra. Plus it's got no annual fee.

Besides that, the best thing I could suggest is maybe the Amex Fidelity card which gives a flat 2% if you open a Fidelity account (it's free). That way you can juggle 2 Amex cards and 2 or 3 non-Amex in your wallet, and stow the other couple for purpose of maintaining history.

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Xorand
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Postby Xorand » Thu Mar 13, 2014 10:51 pm

Not really needing more cards. The ones I have give the best perks for what we use a lot of. For example, we burned through around $15k in fuel last year (note the OP that we travel a lot in our RV), so right now the Chase is the go-to card until we hit the quarterly $1500 limit, then we switch back to the BCP. Hotels are pretty much a non-item for us.

We fly out west to visit our daughter and family three or four times a year, typically on Delta, so the gold AmEx does it for us there. We make an annual trip to Disney World, thus the new Disney Visa.

Can't think of much more I'd pick up at this point. Just figuring out which ones don't make sense. The old Orchard card makes least sense given the low credit limit, an annual fee and no perks whatsoever. Though the CapOne cash back gives 1% on everything, it still doesn't make a lot of sense given that I've got four other cards that give a minimum of 1% back on things, or more.

Edited to add: I had considered the Fidelity AmEx as all my retirement portfolio is at Fidelity. That might be the only one I'd consider picking up.
AmEx - Platinum (NPSL) , Blue Cash Preferred ($19,000), Gold Delta Skymiles ($8,500)
Chase - Sapphire Preferred ($14,000), Disney ($11,500), Amazon.com ($9,000), Freedom ($8,000)
CapOne - QuickSilver ($7,250) / Platinum Rewards ($7,250)

linuxmachine
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Postby linuxmachine » Fri Mar 14, 2014 12:23 am

Sounds like you're set :-)



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