What kind of credit cards do you use? I have a couple but just was checking out on Amazon and they gave me $50 to sign up for their card ($50 off my order). I’m looking to cancel the card and didn’t read any of the details (I prefer to just talk to someone on the phone). Does anyone have this card and know cancellation procedures? I would presume there is a fee to cancel as they just handed me $50, but could keep it open for a length of time and make some charges to save a lil money. I try not to waste one penny. My main card is a cash back card with a pretty low percent cash back. It adds up over time but is much less than the rate of inflation. Still not baller enough to get the black card, but hope to get one at some point.
What kind of deals do you get on your cards - what are some good ones?
Unless there’s an annual fee that you just don’t want to pay, you really shouldn’t close a credit card. It hurts your credit score. The more credit available to you vs how much debt you owe is a major factor when calculating your score.
I’m looking at getting a new card too and it really depends on what kind of rewards you’re looking for. Check out either www.nerdwallet.com or www.creditcards.com for a good overview.
I like the simplicity of of the Citi Double Cash Card (1% on purchases and 1% when you pay it off). You can squeeze a bit more out of something like the Chase Freedom card but then you have to pay attention to their 5% cash back bonus offers and I’m too lazy for that.
oh ok wow I don’t want to hurt my credit score. thanks for the heads up. I guess I’ll keep this new Amazon card for a bit. I do order a lot off their site and it said it is 3% off purchases on their site with the card.
Service you get with Chase Sapphire Preferred is great and the cash back pays for the annual fee pretty much. If you don’t want to pay the annual fee blue cash with AMEX and chase freedom are both great.
I primarily use the Chase Sapphire Preferred card then I also have a Chase Freedom card I use to take advantage of their 5% points each quarter.
I went with the Sapphire for a couple reasons:
they gave me $500 if I spent $4k in the first 3 months and $50 if you add another user (fiancee).
You can redeem points for travel @ 1.25x what they’re worth for cash back (so that $550 now becomes $687.50 and the 5% back on the freedom card turns into 6.25% back).
2% back on all travel, including restaurants, which we eat out a lot so we can take advantage.
You can transfer point 1:1 to a bunch of their ‘Travel Partners’ which lets me take advantage of other point systems like United, SW, Hyatt, Marriot, etc.
The general thought is that cash back is the worst option you can use your points for, but if the card doesn’t offer any alternatives then you’re basically stuck with it. When I first got down here they would only give me a Freedom card which is either cash back or the equivalent in gift cards - obviously, I’ll take cash back and spend the money wherever I want rather than take a gift card for the same value. Since I’ve gotten the Sapphire card it give me more options. Sure it’s a little more complicated, but you can get some solid deals through it.
In general, I don’t like using cash back cards. I prefer earning points that can transfer to hotels/airlines with Amex/Chase/Citi because I like redeeming for things I wouldn’t otherwise pay for. I also have a Chase Freedom, but have a Chase Ink to pair with it. I also have a couple of Amex cards that earn SPG points and Amex points, as well as a Citi rewards card.
My credit card use strategy is admittedly more complex than most peoples but it works well for me.
As long as it works for you, it doesn’t really matter how complex or simple it is since you don’t have to explain it to anyone if you don’t want to. Personally, I bank with Chase which is largely why I use their cards because I like to have everything in one place. I find it easier for online banking purposes, etc.
So, like I said, I’m checking into it but haven’t done much research. Is it Visa or Mastercard? Something about Mastercard seems so…poor.
Edit: I will go on record as saying I really like my Discover card and that’s pretty cilivian. Would be my only card but not every place accepts Discover.
Discover was my very first CC. I almost never use it anymore, but keep it open for nostalgia. It also helps my credit score by making my average CC life longer and, as STL noted, keeping my % of available credit used lower.
I just use my bank’s credit cards (Wells Fargo and USAA).
I don’t know what the rewards/points/miles are. Frankly, I don’t really care.
Based on zero evidence, I believe that most people think they’re winning the credit card game, but they’re probably actually losing it. I don’t really have the time or desire to spend a significant amount of energy trying to get an extra .000005% cash back.
I don’t see how you can lose unless you change your spending habits in order to try to get more points. If I have the choice of 0% back or 2% back, I’m taking the 2% every day.
If you start spending more to get the points then you’re a sucker.
Basically this. I use my credit cards as I would cash or my debit cards. Pay the full balance off every month. I don’t rack up huge benefits but every few months I either get some cash back or points towards travel, clothes, etc… certainly beats paying it straight out of my checking account.
I agree I don’t have the energy either for “churning” or whatever the heck those nutbags on that subreddit do. Not to say I don’t respect the effort they put in. But no I don’t spend any extra. Whatever my planned expenditures are go to to CCs that are paid off on time each month with some nice perks, albeit small, every now and then.
I think at minimum people should be using a no annual fee cashback/points card in lieu of cash/.debit card. The Citi Double Cash is arguably the best for simplicity and 2% everywhere. Amex Everyday is a good card because you get 2x on groceries and I think Amex points are worth more than 1 cent each. I think the Chase Freedom is also a must have.
Once you get into credit card with annual fees the decisions become a bit more about your individual habits, what you plan to do with the points, etc. Like it makes no sense to have a credit card with an annual fee and then redeem the points for cash back or gift cards. I do have some cards that carry an annual fee, but if I do it’s because to me I get more value out of it than the fee costs. Also often times you can get them to waive the fee or give you something to offset it.
i used to use chase with 1% cash back, 5% rotating, but got annoyed like veryone else and went to the 2% cash back with fidelity for everyday purchases. i have an amazon prime visa 5% cash back on amazon purchases. and i got an orbitz card for 10% cash back on hotel bookings.