Free airplane ticket reward and then close the card, how will this go?

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4 posts
JackLane
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Joined: Sat Feb 28, 2015 7:45 am
Location: NYC

Free airplane ticket reward and then close the card, how will this go?

Postby JackLane » Sat Feb 28, 2015 8:01 am

Hello folks,

New member, lurking around, trying to absorb information.

Financially OK, 18K car loan, 75K paying job, pays credit card bill in full every month (never missed so far), credit score around 750 (according to Credit Karma), have Chase Freedom, Costco Amex and standard bank card.
Not too much dough lying around (savings or retirement) as we are spending 10X of our earning on our son's Autism treatment/therapies. So although tough times aren't here, they will be if we continue this road. Hence, we have cut back a TON on our spending. Spending only for his treatment/therapies, and almost zero on us (except absolute necessities).

That being said, I personally never looked too much into rewards until I ran numbers recently. We travel once a year to see a specialty physician. We pay about $700 for the tickets. Recently, after receiving a pre-qualified offer for a credit card with some points for air travel, I thought, how about me getting this card, collecting the points, redeem those points and close after a year. Not rigging the system per se, but just taking advantage, pretty much the same way these companies use us.

I am not trying to justify this method, but it did occur to me. Desperate times have brought desperate measures upon us. I don't really care much about credit score as we won't be taking any big loans in near future (savings for the house have already been spent on therapies).

Questions
- How much this practice will affect financial standing overall, other than losing that year of credit history, ding in the credit score?
- How such practice will affect future credit card applications, if any?
- Do you suggest me to give this a shot? (although its my personal decision, would you do it, if you were in my shoes?)

Thanks a million in advance.
Chase Freedom 04/2012. $6500 | Costco AmEx 10/2012 $8100 | AmEx BlueCash 06/2015, $15000 |Discover It 07/2015, $5200 |Amazon Store Prime 01/2016 $2200
Local Credit Union secured card, 12/2009 - Closed 02/2015
Tu-764, Ex-764


luvbullmarkets
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Posts: 241
Joined: Thu Apr 21, 2011 1:02 am
Location: TPC Stonebrae

Postby luvbullmarkets » Sat Feb 28, 2015 12:34 pm

Welcome JackLane!

What specific card are you looking at applying?

I also would like to recommend the Barcalycard Arrival +. 0% Introductory APR for 12 months plus 40,000 bonus miles on $3000 spend within the first 3 months. This card is a favorite amongst us fellow point churners.
Amex EveryDay, Amex BCE , Barclaycard Arrival+ WEMC, CSP Visa Signature, Discover it, Wells Fargo Propel 365 Amex

"Attack this day with a level of enthusiasm unknown to mankind." - Jack Harbaugh

takeshi
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Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Postby takeshi » Mon Mar 02, 2015 8:44 am

JackLane wrote:How much this practice will affect financial standing overall, other than losing that year of credit history, ding in the credit score?

You won't lose a year of history but you will reduce your AAoA by opening the account. How much depends on your existing AAoA and you can do the math to determine the impact.

JackLane wrote:How such practice will affect future credit card applications, if any?

It's always tough to say. It all depends on how the various factors impact your credit and the criteria of the future creditors that you apply to. We can't tell you approval odds in any situation. If your credit profile is established then the impact is likely to be negligible. If you're building or rebuilding then there would be a greater impact. I know that's vague but that's all we can really say. We can't tell you that you'll lose/gain X points or Y% chance of getting approved for something else down the road.

JackLane wrote:Do you suggest me to give this a shot? (although its my personal decision, would you do it, if you were in my shoes?)

It's precisely because you have to make the call based on your situation and preferences that what others would do is irrelevant. I've certainly applied for a card with the sign on bonus for reward travel as part of the reason but I always consider the long term usefulness of a card to me.

That said, plenty play the churning game and go form sign on bonus to sign on bonus. We can't tell you where your preferences lie on this. You have to determine that. If you want the bonus, can make use of it and your credit can handle the new account then you probably should go for it but don't rely on others to justify your decision for you.

JackLane
Gold Member
Gold Member
 
Posts: 41
Joined: Sat Feb 28, 2015 7:45 am
Location: NYC

Postby JackLane » Mon Mar 09, 2015 12:24 pm

Thank you takeshi,

Appreciate detailed comment.

Can you please elaborate on AAoA? This is the first time I came across this term.

Many thanks in advance.
Chase Freedom 04/2012. $6500 | Costco AmEx 10/2012 $8100 | AmEx BlueCash 06/2015, $15000 |Discover It 07/2015, $5200 |Amazon Store Prime 01/2016 $2200
Local Credit Union secured card, 12/2009 - Closed 02/2015
Tu-764, Ex-764



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