CSP for Homebuyer with relatively low income +3 excellent cards?

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dbourget
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CSP for Homebuyer with relatively low income +3 excellent cards?

Postby dbourget » Mon Nov 18, 2013 10:54 pm

Hello! So, I've got a little bit of a dilemma. I currently have 3 great cards: 1) Capital One Venture Rewards (2% on everything), Amex Blue Cash Preferred (3% gas / dept stories, 6% groceries) and the Discover it (5% rotating categories).

I was wondering if it might be worth it for me to get the Chase Sapphire Preferred.

My situation is:

I live in the US and travel to Asia once every two years or so (Family). I could likely be approved for the Sapphire Preferred based on my annual income (which has decreased, like 6X in the past year due to me moving, but could be averaged in a favorable way that would pretty much represent my overall situation).

I'm moving into a new home now, so I could definitely benefit from the Sapphire rewards.

Pretty much, I am pretty sure that I am stupid to sign up for the Sapphire for the rewards since I have a relatively low income (that will likely improve) and three excellent cards to maintain (which I have and continue to do well).

Am I silly to entertain the thought of another contender to get the $400-$500 reward that could be used to visit some family within a year or two?

Thanks!!


whit
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Postby whit » Tue Nov 19, 2013 1:43 am

depends, the great thing about cc cash back..for now anyways..doesn't count on your 1099 like account bonuses do, however, opening a credit card and having an extra line always impacts your score, which doesn't really matter because eventually it'll go up if you continue to do best practices with your cc and lines

I don't think it's silly to do so if you're already planning to spend that much (have a big purchase or trip lined up)

takeshi
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Postby takeshi » Tue Nov 19, 2013 8:40 am

dbourget wrote:Am I silly to entertain the thought of another contender to get the $400-$500 reward that could be used to visit some family within a year or two?

That's really your call to make. Plenty of people churn cards just for sign up bonuses. Is the bonus the only reason you're considering it? Would you benefit from its rewards on travel and dining (and qualified purchases through the UR mall)? Would no foreign transaction fee be of any benefit to you?

Are your income and existing cards your only concerns?

dbourget
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Postby dbourget » Fri Nov 22, 2013 1:00 pm

I suppose that I don't want to fall into the trap of applying for too many cards and having some get canceled. Perhaps it would be safer for me to apply for a Chase Freedom Mastercard than a Chase Sapphire preferred and use its rotating categories with the discover it and apply for the Chase Sapphire Preferred later.

I'm concerned because I got all three cards within the past year, and I think that it might seem bad to get more than 3. I'm doing really well with the three and my credit score is over 800. I just don't want to get any cancellations or get my credit ruined for some reason, and I figure that people here have a lot more insight than I do.

If I did get a Chase Freedom, it would be to furnish my new home with items from Amazon during the holiday season while I claim the sign-up bonus (then use it for gas in 2014 quarter 1). I'm already going to be using the Discover it to get 5-10% cashback on Home Depot flooring and Sears appliances. I would pay this all off in full.

I'm just scared to get my Chase card canceled down the line since I've already got 3 new ones. I don't buy more once I get new cards, I just change my cashback planning.

Thank you!

dbourget
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Postby dbourget » Fri Nov 22, 2013 6:54 pm

Also, no foreign transaction fee wouldn't matter at all-- I've got that on two cards already.

samhradh
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Postby samhradh » Sat Nov 23, 2013 11:43 pm

dbourget wrote:I suppose that I don't want to fall into the trap of applying for too many cards and having some get canceled....

I'm concerned because I got all three cards within the past year, and I think that it might seem bad to get more than 3. I'm doing really well with the three and my credit score is over 800. I just don't want to get any cancellations or get my credit ruined for some reason, and I figure that people here have a lot more insight than I do.


1. If your credit score is over 800, the last thing you need to worry about is what opening another card will do to your score. Based on my knowledge, the inquiry will knock it down a few points at most. You can afford that hit and then some.
2. No card issuer will cancel the card on you. This just doesn't happen. Especially if you pay OT/IF or the minimum if you're relying on a low APR card. It doesn't matter if you have two cards or ten. If you're a card holder in good standing, the credit card usually could care less about what else is in your wallet.

3. You can get 5% CB at Amazon with the Freedom on up to $1500 in purchases. If you'll be spending more than that, I suggest just using your Venture to earn miles since you get a better redemption rate and can put it towards your trip to Asia. If you get the Freedom then I recommend also applying for the Sapphire Preferred as you can transfer your easy Freedom earnings to the Sapphire Preferred's better redemption rate.
4. I don't think you need the Sapphire because it will eventually have a annual fee unless you downgrade to the Sapphire. Keep using your Venture to earn miles and you'll get help with paying for that trip to Asia. However, if you want to continue growing your credit line and decreasing your utilization, go ahead and apply to earn that sign-up bonus.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

dbourget
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Postby dbourget » Sun Nov 24, 2013 12:59 am

Great, thanks a lot! That's what I figured. I've decided to go with the Freedom and will wait until my income increases again and I have other big purchases to transfer the rewards points over to the Sapphire. I suppose I will get the Sapphire Preferred in the next 3 years (assuming that awesome signup bonus still exists) and keep the freedom rewards for that moment. Thank you! You've reduced my worries a ton.

MemberSince99
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Postby MemberSince99 » Sun Nov 24, 2013 8:04 am

Freedom works well in combination with the CSP.


And like you saw, with your score I doubt even a company as paranoid as Barclays would shut you down for a few new accounts, let alone anyone else.


It's human nature to spend endless amounts of time and energy worrying about things that aren't problems. You are good. Enjoy be happy and don't sweat what isn't an issue.



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