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LOL credit score just dropped 43 points from all the charges I made to qualify for the chase card bonus. I'm doing home renovations so I knew this was the time to open the card to generate the spending to qualify for the bonus. It'll be back to normal in a few months after I pay it off at the end of this billing cycle.
Yeah my credit just took a dump for no good reason whatsoever, basically the same thing, but mine went down 84 points in a month because I ran up $30K on my cards. Of that 1/3 was the honeymoon, which I wasn't out a dime because guests made donations to cover the cost in lieu of gifts, a bunch more was on my business card, and some personal. I just find it unbelievable the algorithms these idiots use to calculate the scores. I don't know anyone else whose credit is as low as mine, yet I've paid off 3 home mortgages, an auto loan, never had a balance on any card when payment was due for 19 years running, and 1 late payment 7+ years ago on accident for a balance of $200 that was paid 3 days late, they had already reported it.
So I guess I'm going to have to resort to paying these cards the second a big expense hits one of them (though I don't foresee many more) to avoid this mid-cycle brutalization they like to pull. They need to figure out a way to differentiate an actual balance from just "using the card during the month." If I have $30K on my cards but none of it is past due, then the balance is $0. Period. The balance will be $30K if and only if the payment date comes and goes and it's not paid. What's so hard to understand about this? It's like they have no idea that people have different spending power and since you're never actually required to verify income or net worth in any meaningful way besides just entering some fields, then they'll continue to act like it's appropriate to destroy your credit rating for what they have arbitrarily decided is a big balance.
Yeah my credit just took a dump for no good reason whatsoever, basically the same thing, but mine went down 84 points in a month because I ran up $30K on my cards. Of that 1/3 was the honeymoon, which I wasn't out a dime because guests made donations to cover the cost in lieu of gifts, a bunch more was on my business card, and some personal. I just find it unbelievable the algorithms these idiots use to calculate the scores. I don't know anyone else whose credit is as low as mine, yet I've paid off 3 home mortgages, an auto loan, never had a balance on any card when payment was due for 19 years running, and 1 late payment 7+ years ago on accident for a balance of $200 that was paid 3 days late, they had already reported it.
So I guess I'm going to have to resort to paying these cards the second a big expense hits one of them (though I don't foresee many more) to avoid this mid-cycle brutalization they like to pull. They need to figure out a way to differentiate an actual balance from just "using the card during the month." If I have $30K on my cards but none of it is past due, then the balance is $0. Period. The balance will be $30K if and only if the payment date comes and goes and it's not paid. What's so hard to understand about this? It's like they have no idea that people have different spending power and since you're never actually required to verify income or net worth in any meaningful way besides just entering some fields, then they'll continue to act like it's appropriate to destroy your credit rating for what they have arbitrarily decided is a big balance.
It's your utilization. Over 30% on any one card or of your total available balance is a big hit. It will go back up next month. It's not a big deal unless you are under the gun to apply for something RIGHT NOW.
OK for the sake of argument, you have great credit and ALWAYS pay off your credit card balances on time.
Would it be better to just put all your spending on one credit card, or have multiple cards where you put targeted spending to maximize the reward points/cash back?
I have two cards that are both issued by Bank of America. One is a Visa and the other an Amex. Because both use the "WorldPoints" system, reward points can be transferred between the two at any time. Previously, the minimum amount of points able to be transferred was 2500, but recently they removed that requirement and now you can transfer as few points as you want. Comes in handy if I am only a couple hundred points shy of having enough for a particular reward.
I also have a third card (from Chase.) But I only use that card for the three automatic recurring fixed-amount monthly charges that I have, so points accumulate slowly in that one. I redeem those points for a statement credit at the end of the year.
I've had those same three cards for ages: the Chase card since 2001, and the Bank of America cards since 2004. The B of A cards are actually "older", from the 1980s in fact, because they were originally issued by Fleet Bank which Bank of America acquired in 2004. After the acquisition, all Fleet Bank cardholders were sent new Bank of America credit cards as a replacement. All the credit cards I've ever owned were no-fee.
Last edited by BBCjunkie; 02-29-2020 at 08:21 AM..
Just got the 60k reward points bonus on the Chase Sapphire Preferred. Going to take a break for a little while and decide on what card to get the next bonus. Maybe the capital one venture? I have 5 cards currently with 820 credit score.
You're not getting dinged for inquiries?
I sort of want the $300 bonus only. Meaning I wouldn't get anything else out of the card. I'd sign up, spend the required amount, take my $300, and close it. (Would have to close due to annual fee).
I sort of want the $300 bonus only. Meaning I wouldn't get anything else out of the card. I'd sign up, spend the required amount, take my $300, and close it. (Would have to close due to annual fee).
There is a ding, maybe 7-10 points for a few months and it recovers. When I was opening these cards I still had a credit score above 800. It recently dipped under 800 after I charged 12k of renovation costs on a card. It'll get paid off at the next bill and the score will recover. I had a big drop the last time I put a 5k vehicle down payment.
Some of them have specials from time to time. One of mine right now if I spend $1500 on it by the end of May, they will give me $50. I will buy gas, groceries and pay bridge tolls with that card and just pay it off the same day. Not much effort and i am sure I can put and extra $50 to good use. Next quarter it may be a different card with a special.
LOL credit score just dropped 43 points from all the charges I made to qualify for the chase card bonus. I'm doing home renovations so I knew this was the time to open the card to generate the spending to qualify for the bonus. It'll be back to normal in a few months after I pay it off at the end of this billing cycle.
2/24/2020 My score took a hit after I charged several thousands in home renovations. 4/6/2020 my score jumped back up 46 points to 826 after the credit card was paid off. I'm going to see these swings for a bit as I have another round of renovations to pay for.
Side note a question to the group. I found Bank of America has a credit card that is doing zero fees for balance transfers and 15 months of 0% intro APR. I have about $9000 of renovations coming up and I have the money to pay in cash for it, though I pay in credit cards (no fee from contractor) and then pay it off. With all that's going on in the world, I'm considering wanting more cash on hand would be better. So what I'm considering is charging the renovations on a credit card to get the reward points, and then doing a balance transfer to this BOA card. Then paying whatever minimum for 14 months to have more liquidity, then just paying off whatever balance is left. Close the card a few months later.
I really don't NEED to do this for liquidity as I have about 16 months of expenses in cash if I don't change my spending levels, but this would give me another buffer. Is worth jumping through the loops of opening another credit card? I already have 5 with about 94k in credit limit. I only really open up new cards for reward bonuses. I don't charge anything I can't pay off at the next billing cycle so never incur any finance charges.
2/24/2020 My score took a hit after I charged several thousands in home renovations. 4/6/2020 my score jumped back up 46 points to 826 after the credit card was paid off. I'm going to see these swings for a bit as I have another round of renovations to pay for.
Side note a question to the group. I found Bank of America has a credit card that is doing zero fees for balance transfers and 15 months of 0% intro APR. I have about $9000 of renovations coming up and I have the money to pay in cash for it, though I pay in credit cards (no fee from contractor) and then pay it off. With all that's going on in the world, I'm considering wanting more cash on hand would be better. So what I'm considering is charging the renovations on a credit card to get the reward points, and then doing a balance transfer to this BOA card. Then paying whatever minimum for 14 months to have more liquidity, then just paying off whatever balance is left. Close the card a few months later.
I really don't NEED to do this for liquidity as I have about 16 months of expenses in cash if I don't change my spending levels, but this would give me another buffer. Is worth jumping through the loops of opening another credit card? I already have 5 with about 94k in credit limit. I only really open up new cards for reward bonuses. I don't charge anything I can't pay off at the next billing cycle so never incur any finance charges.
It doesn't really cost you anything, except some of your time to arrange this and keep your cash handy. With 16 months of expenses already on hand though, it doesn't sound necessary. If anything I'd personally invest that 9K for the 14 months and then pay off the new card.
It doesn't really cost you anything, except some of your time to arrange this and keep your cash handy. With 16 months of expenses already on hand though, it doesn't sound necessary. If anything I'd personally invest that 9K for the 14 months and then pay off the new card.
I had thought of that, but too "risk averse" to pull that off without loosing some sleep. My mind would race too much towards "What if I lose money?" Which sounds dumb considering my brokerage is 100% in stocks and my work retirement account is 95% stock/5% bonds so I'm OK with risk. I don't mind the risk when it's for a long term, but 14m is too short term and feels like I'm investing with "borrowed money."
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My mind would race too much towards "What if I lose money?" Which sounds dumb considering my brokerage is 100% in stocks and my work retirement account is 95% stock/5% bonds so I'm OK with risk. I don't mind the risk when it's for a long term, but 14m is too short term and feels like I'm investing with "borrowed money."
