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Recently my wife & I took advantage of a credit card bonus offer we got in the mail where we got $100 payment for signing up and using the card. We quickly paid off the balance and then requested the check which we received without a problem. Seems like a good deal and I was thinking about doing this frequently. We have excellent credit and we would always pay off the balance immediately so as not to accrue any interest charges (many of these offers we are getting are offering 0% APR for a year or more).
Just this past weekend, we got 2 offers in the mail (same offer, but one for me and one for her). The offer was for a $300 bonus. I read the details closely and it appears there is no catch--you simply need to sign up for the card and make one purchase and you will get the bonus. I was considering trying to apply for a card for each of us to get $600, but I suspect that won't work. But we should be able to take advantage of at least one of the offers.
Is there any reason not to do this? Again, the balance would be paid off immediately so we wouldn't accrue any interest. We currently use an Amex Blue Cash card exclusively, which we also pay off in full each month, and generally get $600 back for the full year. But if I can play this game and keep signing up for these cards just for the bonuses, I think we can make much more than that. Any thoughts on this? Would this cause problems with our credit rating? Thanks.
Reason against it is the hit on your FICO. I do not worship the FICO score and do not care myself, but I do care when my Auto and HO insurance is not as cheap as it can be. Your insurance score uses elements of your credit score, it is a slightly different algorythm.
I used to play the game, yeah you can make a few bucks at it but, for me, it did not offset the savings in insurance. Now I simply use a 1% cash back on every purchase on each statement. No frills, just cash. Go to www.penfed.org to sign up. You DO qualify for membership, read the details of membership.
My fico scores are 790+ and I pay off the credit cards every month.
Some of these credit card deals are great. The one that really has me thinking is 50000 marriott points, $150 credit card credit, and a free night.
Seems to be a good return on my investment of zero and about 20 minutes of filling out the application.
I guess my only thoughts are this. It seems like it could be a slippery slope if you are not careful. I would also want to limit the credit they give me. I signed up for a card and they wanted to give me a 10k+ limit. I asked them if they could just do 1000 or 2000 which they did.
But honestly, we worked hard to earn our good credit and I see nothing wrong with getting a few rewards for it.
It doesn't affect your FICO negatively, unless the rules have changed dramatically. You get a minor hit because you have applied for more credit, but if you have tons of credit available and keep low balances, your score shouldn't change much at all. What MIGHT happen is a really stupid bank officer asking you to close some accounts to get a mortgage from them.
The credit card companies are again looking for really creditworthy people. Those coffers are beginning to open back up to lending again.
I recently received $1000 to open a credit card. That one was definitely worth it!
You will receive a small hit caused by the inquiry. Your average age accounts will take a hit also. Depending on your score, file thickness and "bucket" you are in, the hit is temporary and probably only 10 points or so.
And yes, I do this all the time. Just manage your credit (allow it to recover) and have fun.
Oh, Why did the one poster ask to reduce their credit line? You never want to do that. Part of your score is based on utility (balances to limit ratios). Even if you pay off your bill before the due date, the lender will generally report your balance when the statement cuts, so unless you pay it before that time you will likely take a hit. The higher your limit, the less this hit. Also, higher limits beget higher limits!
Chase Sapphire Preferred. 50k points ($500 or even more in airline tickets) with your first purchase and 50k more when you reach $3k in spend (there are ways to spend... without really spending )
The 100k deal is dead right now, but a 50k deal is still alive.
Another thing you can do is open checking accounts for a signup bonus. Chase is great for this. $125 or $150 all the time. There are timing limitations (one per calendar year) and some requirements to avoid a monthly fee (minimum balance of $1500 or direct deposit). Just read the fine print and mark your Outlook when it's time to close and when it's time to open a new one.
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