Take advantage of a credit card offer then cancel the card?

[nsmall]

Sorry, this is a real question.  I am new here.  Love this site.  Amazing.

So I found this offer https://www.cardratings.com/details/credit-card/capital-one-savor-cash-rewards-credit-card.html?src=636824

Is it common practice to take advantage of the offer then cancel once you earn some benefits?

Again, I'm new here, please try to be nice :)

[secondcor521]

Welcome to the board.

It is quite common among people on this board and similar boards elsewhere on the Internet.

It is somewhat less common among the general population, for several reasons.  Some people will find that they like the card and decide to keep it.  Some people will continue to use the card just because they put it in their wallet and it became the default card to use.  Some will run up a balance and be unable to pay it off (yes, one can close a card with a balance on it; I've never done that).

[kpd905]

Yes, many of us do this.  My wife and I have made about $5,000 this year from credit cards, plus a couple hundred thousand miles.

Just realize that Capital One will pull your credit from all three bureaus.  It probably doesn't matter to you if you are just starting out, but as you open more it can be a pain.

If the spend for that card isn't a problem, you could grab Chase Sapphire Preferred, the Capital One card, and the Bank of America Premium card.  Those will each get you $500+ after hitting the minimum spend.

[Catbert]

Wait until the end of the first year to cancel.  You'll have at least 30 days after annual fee is charged to cancel and they will refund the fee.  Or consider downgrding to a no fee card.

[nsmall]

@Catbert Sorry, I am a little slow.  If I am understanding you, I have to wait until my 12 months is up, then cancel?  Why cant I cancel before 12 months?  I will read more, maybe I have to do this to get the benefits?

[nsmall]

The more I read about Capital One the less it makes sense.  I HAVE to spend 3k within 3 months to earn the benefit.  How many businesses actually accept Capital One?  That was a real question. 

I guess I am just used to visa and discover where I live.

Thanks again in advance.  I will check into the other cards mentioned.

[kpd905]

The more I read about Capital One the less it makes sense.  I HAVE to spend 3k within 3 months to earn the benefit.  How many businesses actually accept Capital One?  That was a real question. 

I guess I am just used to visa and discover where I live.

Thanks again in advance.  I will check into the other cards mentioned.

The Capital One Savor card is a MasterCard, it should be accepted pretty much everywhere.

[Michael in ABQ]

I have that card and as soon as the $500 credit posts I'll be closing it and moving on to another card that offers a big cash back bonus. It's been pretty easy to get to $3k in 3 months. Our grocery budget alone is $1,300 a month for a family of 8.

[kpd905]

I'd recommend keeping cards open until at least the 10-11 month mark, unless you want to risk getting blacklisted by the banks.  There is no reason to close it any earlier.

[nsmall]

Thanks everyone.  You are the best.

As for the 3k in 3 months, I would hope I dont spend extra money just to get $500, so I may look for something else.  I only get 1% back on my chase freedom card so hopefully I can find a 2% back card.

[nsmall]

@frugaliknowit   I noticed on another thread you signed up for citi double.

Is it that simple, 1% back on all purchases and 1% back when you pay your bill?

Plus there is no annual fee.  Great

What company are they connected too?  Visa, Mastercard?  Couldn't figure this out on their site.

Man, I feel like a dingbat thinking all these years my wimpy 1% and no annual fee was a good deal with visa.

[Nate79]

I would not do this with AMEX.  They may claw back the bonus.

Sent from my SM-G950U using Tapatalk

[nsmall]

Yeah, I have been reading about AMEX.  I've had my chase visa card for 10 years, I am going to go with another option that gives me more now that I know there are better options out there.

Thanks

[jojoguy]

In the last couple of months I`ve gotten two cards from chase. Honestly, the rewards are good enough and have no annual fee, that I want to keep them after the two intro rewards add up.
Sadly(or goodly :) ), I don`t spend enough in three months to get the big dollars that the Savor card offers. I can`t pay my house or my son`s home schooling with it. Maybe I would be able to
make extra spending to compensate, but that would force me to spend over budget. I gotta stay disciplined.

[kpd905]

Thanks everyone.  You are the best.

As for the 3k in 3 months, I would hope I dont spend extra money just to get $500, so I may look for something else.  I only get 1% back on my chase freedom card so hopefully I can find a 2% back card.

You can just accelerate your spending to make sure you hit the $3,000.  Buy gift cards for your grocery store or gas station.  Or see if you can prepay your utilities or cell phone bill with the card.  Last option would be to use something like Plastiq to pay rent/mortgage with a 2.5% fee.  The bonus on the card gives you over 16% back, so you'd still make a good profit.

[chuckster]

You can sign up, keep it for the year, then when you get hit with the annual fee, call in immediately and ask if they can do anything about it. Say "I really don't want to have a card with an annual fee, I'm a good customer, can you waive it?" They'll say no, 99.99% of the time. Then just ask if you can close it or downgrade it to a similar card with no fee. They'll do one of those for you without a problem (it's called a Product Change in the churning lingo).

[bacchi]

Thanks everyone.  You are the best.

As for the 3k in 3 months, I would hope I dont spend extra money just to get $500, so I may look for something else.  I only get 1% back on my chase freedom card so hopefully I can find a 2% back card.

You can just accelerate your spending to make sure you hit the $3,000.  Buy gift cards for your grocery store or gas station.  Or see if you can prepay your utilities or cell phone bill with the card.  Last option would be to use something like Plastiq to pay rent/mortgage with a 2.5% fee.  The bonus on the card gives you over 16% back, so you'd still make a good profit.

One can also pay income taxes for just under 2%.

[Catbert]

For anyone who plans on churning credit cards you should really spend a bit of time learning about the hobby.  If you know you're just going to get one new card a year then maybe you can skip the work and not get into too much trouble.  However, you don't want to be one of those people who get 4 random cards and then finds out about Chase 5/24, Amex claw backs or Citi card family rules and wish you'd skipped the mediocre sign up bonuses.

Spend a bit of time poking around  DoctorofCredit.com or thepointsguy.com.  Both have beginners guides as well as daily postings.  DoC is more unbiased since he doesn't accept any credit card affiliate links.  The Points Guy is now owned by a corporation (bankrate I think).  While good info is provided you need to keep in mind that the points guy makes tons of money on credit card affiliate links.  When they talk about how great or must have a card is, follow the money.

Flyertalkforums.com is another good source of info. 

[MDfive21]

FWF exile here.. between the wife and me, we have about 30 cards and total of 400k+ in credit lines.  i normally don't cancel cards until the annual fee hits if there is one.  there's no reason to close cards unless you are bumping up against the max credit that an issuer will give you or they are asking for the annual fee.

if they won't open a new card because you have too much outstanding credit limit, call and either transfer some credit limit to the new card or close one of the old cards. 
when closing due to annual fee, just say 'i'm not using the card as much as i expected.'  simple explanation.

[GetItRight]

I don't actively seek these out but any I happen across or they spam me that have no annual fee and an easy cash payout I'll take. Not interested in miles or any "preks" My go to cards for normal spending are Citibank 2% cash back on everything, Uber Barclaycard 4%cash back for restaurants/bars and 3% for hotels (travel for work). I'll do a card or few a year depending on what I stumble across, charge just enough for the reward then I never use it again, and never cancel it. I like when banks pay me for the inconvenience of dealing with them.

[kpd905]

I don't actively seek these out but any I happen across or they spam me that have no annual fee and an easy cash payout I'll take.

Most cards waive the annual fee the first year, so I wouldn't advise anyone to only consider no fee cards.  There is thousands of dollars per year out there in sign up bonuses, you just have to be willing to take it.

[MDfive21]

I don't actively seek these out but any I happen across or they spam me that have no annual fee and an easy cash payout I'll take. Not interested in miles or any "preks" My go to cards for normal spending are Citibank 2% cash back on everything, Uber Barclaycard 4%cash back for restaurants/bars and 3% for hotels (travel for work). I'll do a card or few a year depending on what I stumble across, charge just enough for the reward then I never use it again, and never cancel it. I like when banks pay me for the inconvenience of dealing with them.

the best deals are almost never spammed or offered to everyone.  if you check in with the card churning websites occasionally you'll see much better deals.  more points for less spend.

[nsmall]

Sorry to ask, but some are saying wait until the 12 months is up, call to cancel on the 13th month. Why not cancel on the 11th month?  I would hardly be signing up for these offers.  But the following card seems too sweet to pass up.....


  https://www.cardratings.com/details/credit-card/capital-one-savor-cash-rewards-credit-card.html?src=636824

I would rather not pay an annual fee.  Ive read some of you say call the company, cancel once the annual fee is assessed, why not cancel at the 11th month if you have already earned your "bonus" 3 months in?

[Catbert]

Looks worse to credit card company to have a history of cancelling in less than a year.  AMEX cites that as a reason to claw back points.

[secondcor521]

I typically cancel at the 11th month.  My experience may or may not be unusual, but I have never had a bonus clawed back after doing stuff like this for almost 12 years and about 80 cards.

The exception to this is if I think I can finagle another year of benefits somehow.  For example, I'm hoping to get an additional $300 travel credit then cancel my CSR before my next annual fee hits.  However, with the tight timing, I may need to wait until the annual fee is charged and then close it soon thereafter.

Do the credit card companies know what I'm doing?  If they look at me, sure they do.  My experience is they don't look at me that often or that carefully.  Even with that, after doing this for so long I'm really playing with the house's money, so I don't really worry about it.

[TomTX]

Sorry to ask, but some are saying wait until the 12 months is up, call to cancel on the 13th month. Why not cancel on the 11th month?  I would hardly be signing up for these offers.  But the following card seems too sweet to pass up.....


  https://www.cardratings.com/details/credit-card/capital-one-savor-cash-rewards-credit-card.html?src=636824

I would rather not pay an annual fee.  Ive read some of you say call the company, cancel once the annual fee is assessed, why not cancel at the 11th month if you have already earned your "bonus" 3 months in?

Conversely - why not wait? They won't actually make you pay the annual fee if you call in before the bill with the fee is due.