Author Topic: Opening Credit Cards for Infrequent Purchases  (Read 514 times)

KYFIRE

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Opening Credit Cards for Infrequent Purchases
« on: December 11, 2020, 10:27:20 AM »
I've tried to search but not much luck finding specific response.

Need tires on two cars.  Can get $250-$350 cash back on the purchases if open another credit card.  Being such an infrequent purchase would you consider doing?  I would think between buying now and getting next ones the account might even close from inactivity.

Currently have 9 cards now, of which probably 50% of them were opened for promotional activities (0% to pay for large purchases, big kick back on travel costs [for work travel], all never occurring interest).  How many do you have, would you open to get a big savings like this? 

I can't see any real downside, just requires more organization.  No big purchases/loans coming up for foreseeable future (just did a refi).

Thanks,


therethere

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Re: Opening Credit Cards for Infrequent Purchases
« Reply #1 on: December 11, 2020, 10:33:55 AM »
I plan to open 4-5 credit cards for bonuses every year. It nets me ~2k (low estimate of $500/card) of travel expenses annually. It's allowed me to take my vacations on holidays when otherwise I would not be willing to book a plane ticket at 3x the normal cost. This year, with no international travel anytime soon, I cashed out over $3,500 from my Chase cards.

I wouldn't open a best buy credit card to get 10% back on the first purchase or whatever. But $500 for migrating my spending to a new card every 3-4 months is worth it in my book. You do need to be organized though.

It's called credit card churning. And a decent amount on the forum then parlay this into Tradeline sales when their credit ages to get some relatively passive income.

ixtap

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Re: Opening Credit Cards for Infrequent Purchases
« Reply #2 on: December 11, 2020, 10:41:56 AM »
I look for new credit card bonuses whenever I am planning a big purchase. If they are annoying (hello, Capital One), I cancel the card after I receive all my benefits.

I would open a Best Buy to get 10% back if I were already planning to make a big purchase. However, I used a continuing customer bonus from Fidelity for my Switch, instead.

KYFIRE

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Re: Opening Credit Cards for Infrequent Purchases
« Reply #3 on: December 11, 2020, 10:44:37 AM »
I never heard of the tradeline process.  Seems.......kinda sketchy but only scratched the surface so far.

Thanks for feedback.

ixtap

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Re: Opening Credit Cards for Infrequent Purchases
« Reply #4 on: December 11, 2020, 10:54:17 AM »
I never heard of the tradeline process.  Seems.......kinda sketchy but only scratched the surface so far.

Thanks for feedback.

Oh, it is totally sketchy and there is anecdotal data of people using this to get credit, then getting themselves into trouble. But it is a popular sideline around here.

therethere

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Re: Opening Credit Cards for Infrequent Purchases
« Reply #5 on: December 11, 2020, 10:59:53 AM »
Oh it's sketchy, and personally I only have one card enrolled. It has been paid out reliably though. I don't feel it is worth it doing it for small payouts (<$75) because of taxes. But that's just me.

I also wouldn't open a credit card for <$200 benefit. My target benefit is $500 per card. Which is doable if you're only sticking to a few cards per year.

Sibley

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Re: Opening Credit Cards for Infrequent Purchases
« Reply #6 on: December 11, 2020, 03:17:16 PM »
My preference is to keep things simple. Which means, I'd use one of my existing credit cards. I also don't have 9 credit cards. For me to open a new credit card is a careful decision.