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Old Yesterday, 12:39 PM
 
2,158 posts, read 505,856 times
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Quote:
Originally Posted by Lowexpectations View Post
3 cards per year wouldn’t work within Chase’s 5/24 rule
You will always be shorting yourself churning cards, leaving a big chunk of your score on the table by your AAoA (average age of accounts) never reaching past a few years).

You want to have a few cards you don't close, as a buffer to minimize any impact you might receive opening one new card and it pushing your AAoA down below, say, 3 years.

Chase quickly wised up to consumers opening new cards, getting the 50,000 points for charging $4,000 in 3 months, then doing it across several cards several times per year.
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Old Yesterday, 01:33 PM
 
529 posts, read 430,627 times
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Quote:
Originally Posted by Lowexpectations View Post
3 cards per year wouldn’t work within Chase’s 5/24 rule
I'm married when I said 3 cards per year is between both of us.
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Old Today, 01:23 AM
 
Location: Silicon Valley
3,212 posts, read 1,391,107 times
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Quote:
Originally Posted by lostsoul359 View Post
I think I'm close to "The King" actually. When I used to travel for work I'd use a different card for each trip. Assuming it was starting at 0 I could then pay it off with no interest, but I had to buy the ticket in advance and there was a relatively short delay in getting reimbursed. If I had a newbie on my team, there was a chance they weren't going to be able to swing for a business class international ticket, so I'd pick it up for them. Plus I had my own college debt to swing from card to card and avoid interest.

They came in handy for scrambling home downpayments together. Still, there's danger in them. They can change their rates at any time. I had several from one bank in particular. I was stuck carrying a balance for a bit and had it on theirs because I had a couple cards at 7.9%. Notice that they were moving it to 18.9%. I maneuvered and got mad at them, but paid them off and didn't use them for awhile. I had another opportunity come later. I told the person what had happened last time and got moved down to 8.9% "Fixed". Well, there's nothing fixed about it. As soon as I took the money after the free period, suddenly they were going to raise it to 20+%.

When you use credit cards, you need to realize you're juggling bombs with a fuse on them that's lit. You don't want to hold on to it very long, but the flexibility (and perks) can be rather useful. Perks didn't happen as much when I was younger.

But, as a younger man I was much more eager to get even. I'd say the short sales during the housing crisis that cost that one bank in particular about a $1M in write-offs....and I didn't feel one bit bad about it.

Now they're all on autopay in full. I think a few have cancelled due to lack of use. Some I cancelled because they didn't offer an autopay in full option. A couple I cancelled because they didn't give enough data history come tax time. Not sure which FICO is used, but my score on the Discover statement is 850 out of 850. Still, when I'm pushing the accounts, that score could easily plunge. If you're buying a house, you need to season that money in advance with the free time. Your score will pick back up and it will look like you're just a high debt person...though not as good as before. So long as the minimums don't fry your DTI ratio...you're golden.

And if you have enough of them, and you can get enough advances...you can buy the home in a cash deal and refinance it later. When I was buying a home for my sister, the banker wanted me in Chicago to sign the paperwork at closing. I reluctantly agreed, took the time off and bought my tickets. Then his underwriting got all upset about how I make my money. I quickly got it ok, but they needed another 4 days to complete. Closing was in 2 days. I couldn't even get stock sales to clear in that time frame. We'd already set a date with the seller. Credit cards were still good. Called enough to make sure I could do it...and advanced the entire sale. Called my broker and told them to make it an all cash sale...bank was out.

Just be careful when juggling knives.
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