Author Topic: Credit Card recs  (Read 4525 times)

Woodreaux

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Credit Card recs
« on: January 06, 2014, 12:02:40 PM »
Sorry guys  and gals. I know this is an often visited subject.

Me and the wife are about to get serious on building the Stache and we are looking for a new credit card.
We would like to get a Airline Miles Reward card and I don't want the hassle of an annual fee.
We have a BOA card now that pays 1 for $1 reward points now.
I don't want to do the "churning" thing as I want to keep this and start moving all of our recurring monthly payments to it.
We have a SAMs club nearby and have entertained using them for some of our bulk shopping. (We will have a free membership) so the Discover card is one of my options.
I also looked at the Barclaycard World MC thru MMMS credit karma link and it seems promising.

Anyone have any suggestions as to these specific cards or any other options that would fit our needs?

I appreciate any help and apologize for beating the proverbial dead horse with this post.
I know that these offers tend to be timely so I opted to post this now instead of adding to other posts.

Thanks
Woodreaux.

ichangedmyname

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Re: Credit Card recs
« Reply #1 on: January 06, 2014, 12:36:05 PM »
I was about to start a post like this. So thanks. I'll be watching this thread.

bikerider81

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Re: Credit Card recs
« Reply #2 on: January 06, 2014, 12:41:08 PM »
I've been with the Capital One Venture for about a year. We put everything on it, spend pretty modestly, but have still managed to earn about 2 roundtrip tickets in under a year. The other cool thing is that the rewards are flexible, meaning if I don't have any travel planned and would like to get cash back instead, we can do that. We did it more as a way to protect purchases, and cash in on some big moving expenses. I'm sure someone with more money, or making bigger purchases might have better card suggestions to rack up the miles more quickly, but for us, this one has been simple, easy, and effective.

Woodreaux

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Re: Credit Card recs
« Reply #3 on: January 06, 2014, 01:36:22 PM »
I've been with the Capital One Venture for about a year. We put everything on it, spend pretty modestly, but have still managed to earn about 2 roundtrip tickets in under a year. The other cool thing is that the rewards are flexible, meaning if I don't have any travel planned and would like to get cash back instead, we can do that. We did it more as a way to protect purchases, and cash in on some big moving expenses. I'm sure someone with more money, or making bigger purchases might have better card suggestions to rack up the miles more quickly, but for us, this one has been simple, easy, and effective.

Thanks for replying bikerider81. Looking at the Capital One Venture card it looks like it has a $59 annual fee. There is the VentureOne rewards card that has 1.25 miles per dollar spent and a 20k bonus and no annual fee. That one is also on my list as well.
We won't be doing much traveling at first while striving for FI but I'd like to have a nice bank of reward points amassed for a celebratory trip in ~5 yrs or so.

Thanks again. It looks like that Venture One card has decent reviews as well.

apoclater

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Re: Credit Card recs
« Reply #4 on: January 06, 2014, 07:38:27 PM »
If you don't want to get into the churning game, the Fidelity Rewards card is easily the best card.  You get 2% back on everything you buy and it goes straight into your retirement account. 

That being said, I think you should give the churning game one more shot if you even remotely enjoy traveling.  The process is simple:

1. Apply for 2-3 cards with big bonuses assuming your credit score is high enough (700 or above).
2. Meet the minimum threshold on each card to receive the points.
3. Cancel the card after 10 to 11 months so you avoid paying the annual fee.
4. Rinse and repeat 6-12 months later or as you are comfortable.

I've followed this process for 1-1.5 years and my credit score has slowly risen from 710 to 765 in one year.  I've also earned 250k miles this year.

Woodreaux

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Re: Credit Card recs
« Reply #5 on: January 06, 2014, 07:49:19 PM »
If you don't want to get into the churning game, the Fidelity Rewards card is easily the best card.  You get 2% back on everything you buy and it goes straight into your retirement account. 

That being said, I think you should give the churning game one more shot if you even remotely enjoy traveling.  The process is simple:

1. Apply for 2-3 cards with big bonuses assuming your credit score is high enough (700 or above).
2. Meet the minimum threshold on each card to receive the points.
3. Cancel the card after 10 to 11 months so you avoid paying the annual fee.
4. Rinse and repeat 6-12 months later or as you are comfortable.

I've followed this process for 1-1.5 years and my credit score has slowly risen from 710 to 765 in one year.  I've also earned 250k miles this year.

Wow apoclater. That's great. This may persuade me to put some effort into this.
But did you use the points for travel or take the cash back?  I'm confused as to how you hold onto the points and let them build up if you cancel the account.

apoclater

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Re: Credit Card recs
« Reply #6 on: January 06, 2014, 08:18:31 PM »
If you don't want to get into the churning game, the Fidelity Rewards card is easily the best card.  You get 2% back on everything you buy and it goes straight into your retirement account. 

That being said, I think you should give the churning game one more shot if you even remotely enjoy traveling.  The process is simple:

1. Apply for 2-3 cards with big bonuses assuming your credit score is high enough (700 or above).
2. Meet the minimum threshold on each card to receive the points.
3. Cancel the card after 10 to 11 months so you avoid paying the annual fee.
4. Rinse and repeat 6-12 months later or as you are comfortable.

I've followed this process for 1-1.5 years and my credit score has slowly risen from 710 to 765 in one year.  I've also earned 250k miles this year.

Wow apoclater. That's great. This may persuade me to put some effort into this.
But did you use the points for travel or take the cash back?  I'm confused as to how you hold onto the points and let them build up if you cancel the account.

Ok, the answer is it depends on the card, but it's not hard to avoid losing miles. 

Most airline or hotel co-branded cards (Citi American Airlines, Chase United MileagePlus) will have your miles in your frequent flyer account the statement after your meet your spend threshold.  I do not know of any particular co-branded cards that will take your miles away once you spend them, but that doesn't mean it never happens, especially if you do something odd such as cancel immediately following receiving the miles.  That also being said, your miles are subject to normal expirations with the airlines, so keep an eye on them if you decide to cancel.  As long as you're earning, using, or doing something with your miles your expiration normally gets pushed out.

Cards that give you points with banks (Chase Sapphire Preferred, AmEx Membership Rewards, etc) DO go away if you cancel the card.  An easy way to prevent this is just to transfer the miles over to a transfer partner.  For example, Chase Sapphire Preferred allows you to transfer points 1:1 to a ton of different partners such as United, Southwest, Amtrak, various hotel chains, etc.  Transfer them before you cancel and your points are yours.

I spent a couple months intermittently reading up on all of this before I dove into the game.  If you're really interested, spend an hour a night reading some of archives of Frequent Flyer blogs (Million Mile Secrets, View From the Wing, Frugal Travel Guy, etc) and spend some time on the FlyerTalk forums.  Not only will you learn how to earn points, but more importantly you'll know how to spend them efficiently.  For example, I may have 300k points right now, but I can spend 15k points through British Airways on a domestic roundtrip versus 25-50k through American or United on a domestic roundtrip to the exact same place.  Taking the same airlines for example, if I were flying to London I would absolutely choose United over British Airways or American for sheer amount of award seats and lower redemption point and dollar costs.  It all depends on the strengths and situations of each frequent flyer program. 

If anyone is actually interested in a longer tutorial or FAQ, I'd be happy to post one sometime if there's enough interest.  Flying can be really cheap or just flat out free if you're smart and have good credit, which is very moustachian.

Woodreaux

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Re: Credit Card recs
« Reply #7 on: January 06, 2014, 08:36:26 PM »
Awesome stuff. Thanks for taking the time to reply.
I have some time before we plan on taking the trip so it will give me some time to do more studying up and reading these forums and sites your recommended.

 

Wow, a phone plan for fifteen bucks!