Author Topic: Credit Card Question  (Read 5397 times)

2527

  • Bristles
  • ***
  • Posts: 483
Credit Card Question
« on: March 13, 2014, 07:52:20 PM »
I have had a credit card with USAA for about 30 years.  Good quality credit card, no annual fee.  I pay it off in full every month, which these days is about $3,000 or more.  I get 1% cash back on my monthly balance.

I like it because I get cash back every month…nice and simple.

Could I be doing better?  Without making things really complicated, are there credit cards that offer more? 

cochranjd

  • 5 O'Clock Shadow
  • *
  • Posts: 20
Re: Credit Card Question
« Reply #1 on: March 13, 2014, 09:08:25 PM »
In straight cash back?  You can find some that offer better perks on some things.  I have an Amex Blue Cash Preferred card that gives something like 5% on groceries (up to an annual limit), 2% on gas & 1% on everything else.  Also have a Chase Freedom (for places that don't take Amex) that has 5% on categories that rotate quarterly and 1% on everything else.

There are cards that can be more valuable if you enjoy traveling or other specific things, but I'm not at a place in my life where I get to travel too much, so I haven't dug into those much.

Eric

  • Magnum Stache
  • ******
  • Posts: 4057
  • Location: On my bike

Milspecstache

  • Pencil Stache
  • ****
  • Posts: 538
Re: Credit Card Question
« Reply #3 on: March 14, 2014, 04:38:13 PM »
Another benefit to USAA is that if you pay it off each month there is no minimum payment.  Why is this important?  Well, if you are like me, sometimes you are on travel and unable to get to internet to schedule a payment.  If I miss it by a day or two, no problem.  More than that, I will only get a finance charge but no penalty.  Not quiet so important at the moment but hugely important a few years ago.  They do this because they aren't trying to game a few more bucks out of us.

Try that with any other credit card.

MKinVA

  • Bristles
  • ***
  • Posts: 328
Re: Credit Card Question
« Reply #4 on: March 14, 2014, 04:44:04 PM »
I just got the quicksilver for 1.5 percent on everything. I was using discover but those revolving categories really drive me nuts. I don't have the time or attention span to obsess about which card to use which month and on what. Quicksilver has no annual fee.

YK-Phil

  • Handlebar Stache
  • *****
  • Posts: 1172
  • Location: Nayarit (Mexico)
Re: Credit Card Question
« Reply #5 on: March 14, 2014, 05:00:24 PM »
Have you seen this thread?

https://forum.mrmoneymustache.com/welcome-to-the-forum/credit-cards-rewards-and-sign-on-bonuses-%28churning%29/

I've seen it. I used to be a happy one-card kind of guy. This post turned me into a credit-card fanatic in less than three months and I have now six credit cards in my wallet, each that gave me substantial signup bonuses in various forms, usually Aeroplan miles or other travel discount programs, that I have started to use to pay for my expensive airfare to go to work. At a rate of ten roundtrips a year at about $550 a pop, I will probably save over $2,000 in airfare this year, all without spending a cent on these cards since annual fees were waived for the first year. I plan to revert to their no-fee card before renewal is due, wait possibly a year or less, then reapply to hopefully get more sign-up bonuses.

wealthviahealth

  • Stubble
  • **
  • Posts: 227
Re: Credit Card Question
« Reply #6 on: March 14, 2014, 07:26:24 PM »
Have you seen this thread?

https://forum.mrmoneymustache.com/welcome-to-the-forum/credit-cards-rewards-and-sign-on-bonuses-%28churning%29/

I've seen it. I used to be a happy one-card kind of guy. This post turned me into a credit-card fanatic in less than three months and I have now six credit cards in my wallet, each that gave me substantial signup bonuses in various forms, usually Aeroplan miles or other travel discount programs, that I have started to use to pay for my expensive airfare to go to work. At a rate of ten roundtrips a year at about $550 a pop, I will probably save over $2,000 in airfare this year, all without spending a cent on these cards since annual fees were waived for the first year. I plan to revert to their no-fee card before renewal is due, wait possibly a year or less, then reapply to hopefully get more sign-up bonuses.


Great work. Do you know what, if any, effect signing up for these in a short period had on your cc score?


wtjbatman

  • Handlebar Stache
  • *****
  • Posts: 1301
  • Age: 40
  • Location: Missouri
Re: Credit Card Question
« Reply #7 on: March 14, 2014, 07:30:54 PM »
Have you seen this thread?

https://forum.mrmoneymustache.com/welcome-to-the-forum/credit-cards-rewards-and-sign-on-bonuses-%28churning%29/

I've seen it. I used to be a happy one-card kind of guy. This post turned me into a credit-card fanatic in less than three months and I have now six credit cards in my wallet, each that gave me substantial signup bonuses in various forms, usually Aeroplan miles or other travel discount programs, that I have started to use to pay for my expensive airfare to go to work. At a rate of ten roundtrips a year at about $550 a pop, I will probably save over $2,000 in airfare this year, all without spending a cent on these cards since annual fees were waived for the first year. I plan to revert to their no-fee card before renewal is due, wait possibly a year or less, then reapply to hopefully get more sign-up bonuses.


Great work. Do you know what, if any, effect signing up for these in a short period had on your cc score?

Every person is different, mine dropped 50-70 points after opening three new CC's. It's my understanding that my credit score will rise quickly back to it former level after about 6 months.

YK-Phil

  • Handlebar Stache
  • *****
  • Posts: 1172
  • Location: Nayarit (Mexico)
Re: Credit Card Question
« Reply #8 on: March 15, 2014, 10:55:26 AM »
Have you seen this thread?

https://forum.mrmoneymustache.com/welcome-to-the-forum/credit-cards-rewards-and-sign-on-bonuses-%28churning%29/

I've seen it. I used to be a happy one-card kind of guy. This post turned me into a credit-card fanatic in less than three months and I have now six credit cards in my wallet, each that gave me substantial signup bonuses in various forms, usually Aeroplan miles or other travel discount programs, that I have started to use to pay for my expensive airfare to go to work. At a rate of ten roundtrips a year at about $550 a pop, I will probably save over $2,000 in airfare this year, all without spending a cent on these cards since annual fees were waived for the first year. I plan to revert to their no-fee card before renewal is due, wait possibly a year or less, then reapply to hopefully get more sign-up bonuses.


Great work. Do you know what, if any, effect signing up for these in a short period had on your cc score?

I should be face-punched a little because I never checked my credit score, before or after getting all these cards. I assume it would be quite good due to a combination of good luck with my jobs and real estate investments (hard work was and hopefully will never be, in the equation), but at my age and in my current financial situation, I would think maintaining a very good credit score is no longer an important factor. However, for a younger person starting in life, that would be something to investigate before starting to churn credit cards. I might ask a friend of mine who works at a bank to get me a copy of my credit score just out of curiosity.

Fireman

  • Bristles
  • ***
  • Posts: 395
  • Location: Fredericksburg, VA
Re: Credit Card Question
« Reply #9 on: March 15, 2014, 11:10:37 AM »
Could I be doing better?  Without making things really complicated, are there credit cards that offer more? 

I am utilizing the Chase Freedom and Discover IT cards for rotating 5% categories and just got the Capital One Quicksilver for 1.5% on everything else.  Discover IT also has ~100 companies that, when shopping online and through the Discover website, offer 5-20% cash back.  I also earned $450 in sign up bonuses on those three cards.

I might ask a friend of mine who works at a bank to get me a copy of my credit score just out of curiosity.

If you have a Discover card, they now provide a monthly FICO score.

Great work. Do you know what, if any, effect signing up for these in a short period had on your cc score?

I opened two new cards in January and my score went up 10 points.  I opened another card this month and am waiting for my updated score from Discover.

Have you seen this thread?

https://forum.mrmoneymustache.com/welcome-to-the-forum/credit-cards-rewards-and-sign-on-bonuses-%28churning%29/


+1 to the churning thread.  There are many cash back and air mileage/travel cards that give good bonuses listed within.  Check out MMM's card recommendations here and also Nerd Wallet for credit card, bank account, and CD recommendations.