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If you are a loyal user with the same card for years, over time your credit limit grows exponentially and you get offered upgraded cards with better rewards.
I don’t have credit line issues with new or old cards and that’s not a reward anyhow. Upgraded cards? Like what? And what better rewards?
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If you constantly churn cards I doubt your credit limits would increase much with any one card. Although what do I know because according to the posters here it doesn't matter.
A credit line isn’t a reward so it seems the goal post may be moving. I don’t have a personal card opened new or old under 20k credit line so if I got a loyalty bump to 40k it would be irrelevant. Fwiw credit lines aren’t raised because of loyalty
It’s not a free ride and I already pointed out the reasons why. Just because you have the means does not mean it is a smart idea. You only get cash back if you spend, so it really depends on whether the spending is necessary. If you plan on spending the money either way then it may be worth it. If you are creating unnecessary spending in order to get back the $200 then it is not very wise.
An earlier poster mentioned someone getting back $3000 per year by opening a bunch of accounts. The problem is they would need to open like 10 different cards and spend $2000-3000 per card in order to get back that type of cash.
If you stick with 1-2 good rewards credit cards and do most of your spending on those you will find that over time the rewards can far exceed $200.
you have no business commenting on this topic as someone giving advice. you should be commenting as someone asking for advice.
I don’t have credit line issues with new or old cards and that’s not a reward anyhow. Upgraded cards? Like what? And what better rewards?
A credit line isn’t a reward so it seems the goal post may be moving. I don’t have a personal card opened new or old under 20k credit line so if I got a loyalty bump to 40k it would be irrelevant. Fwiw credit lines aren’t raised because of loyalty
Not sure what you mean by "credit line"? I said credit limit. Are those two the same? Higher credit limits are a reward for having good credit history. Higher limits lowers your utilization rate giving you better credit. This helps when applying for a loan. Do you disagree with this too?
This is very relevant to the OP's question about what the downsides are to taking this deal. You are trying to move the goalposts and have an argument on your own terms.
The rewards points/cash back alone for my top cards greatly exceeds the $200-500 cash back being discussed here.
my wife has store credit cards that seem to give her automatic credit line bumps and upgraded cards for loyalty reasons. i dont believe it has happened to me on any of my standard credit cards.
you have no business commenting on this topic as someone giving advice. you should be commenting as someone asking for advice.
Do you have any advice to offer besides personal attacks? So far nobody has explained why my original advice was wrong. They have only insulted me based on my perceived tone.
Do you have any advice to offer besides personal attacks? So far nobody has explained why my original advice was wrong. They have only insulted me based on my perceived tone.
i dont really see that as an attack. some people should be asking for advice and some should be giving it. you should be asking it.
my wife has store credit cards that seem to give her automatic credit line bumps and upgraded cards for loyalty reasons. i dont believe it has happened to me on any of my standard credit cards.
Perhaps it never happened to you because you subscribe to the ideas of the other posters here.
Where did I backtrack? Please describe. I said the same things from my first post. The joke post was just that, a joke.
Every post you wrote was about the "pitfalls". However, the "pitfall" information you provided was largely inaccurate. This has already been pointed out to you multiple times by multiple people.
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Originally Posted by Nolefan34
All I did was answer the original poster's questions of downsides of the credit card deal. Then I was attacked by multiple posters including you. If you disagree with the facts, then state your case and move on. All you do is personal insults.
You have not been attacked or personally insulted. Your bad information was corrected, that is all. Do you need yet another person to go over it again? OK:
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Originally Posted by Nolefan34
Yes. It is a bad idea for a few reasons.
1. You are creating unnecessary debt. The money has to be paid back in full at some point. The balance will continue to grow each month as long as you continue spending on the card. What if you don't have the money to pay it off in full a year from now?
Incorrect. No unnecessary debt is being created. OP has stated the spending will occur with or without this new card. OP has the money to pay in full.
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Originally Posted by Nolefan34
2. You still need to make minimum monthly payments. The larger the balance the higher the minimum due. The more credit cards you have at once the higher your monthly obligations.
Correct, but irrelevant. Again, OP has stated s/he has the money on hand to pay in full. Therefore, the minimum payment due does not create a hardship.
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Originally Posted by Nolefan34
3. Your credit will take a hit. Constantly opening and closing credit card accounts and carrying large balances will hurt your credit.
A ding of a few points does not harm people with high credit scores. As previously mentioned, "excellent" is a range of 110 points (740 to 850). 5 or 10 points are meaningless.
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Originally Posted by Nolefan34
4. The $200 cash back is usually contingent upon spending a certain amount ($2000-3000 in first 3 months). The credit card companies give you nothing. The $200 cash back is simply passed on from merchant fees for processing your card.
Incorrect. The credit card company will give the customer $200. It is irrelevant that the merchant processing fees offset the credit card company's expenditure as the customer does not pay them. (Yes, you can make the case that merchants merely pass on the processing fees by increasing prices, as they do with every other cost. And it is true, BUT, you are going to pay that higher price whether or not you pay with a credit card, making this point irrelevant).
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Originally Posted by Nolefan34
In order to "take advantage" you need to spend thousands on each card in short time periods. Most people only need 2-3 credit cards max. Most cannot handle or keep track of more than that.
Correct, but irrelevant. OP has already considered whether or not s/he will be spending this amount in the time period and has determined yes, s/he will.
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Originally Posted by Nolefan34
Only take advantage if you really need a new credit card or if your current cards pay lousy rewards. Only do the 0% financing if you need to to pay off other debts.
Why? Wanting the $200 bonus seems like a good reason to me.
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