Need help picking a credit card

So, I'd like to get my first credit card. I'd like to only have one and I'm looking for one with a really good rate and rewards program.

Currently I'm considering the Amazon card since I shop there a lot.

The only problem is that I currently have NO credit. You pull up my name and nothing shows up. So I would like some more information on what cards would work for me. Does anyone have any knowledge on this?

Do you have a job? Can you provide consistent proof of employment for a reasonable period of time (i.e. pay stubs)? If so you should be set to get a credit card without having prior credit history.

Find a card with a low or no annual fees. You don't really have to worry about rates as long as you plan to pay off the card in full on a monthly basis.

I know Discover offers cash back on purchases, but not all businesses accept Discover. I don't know about the Amazon card specifically, but I'd assume there are some kind of perks associated to using your card while shopping on Amazon? Some people like to use cards that have airline miles benefits.

If you pay off your card monthly your card will essentially be working for you via the rewards. Plus you'll be building up a good credit history.

If you don't plan on paying off your card monthly, then you should probably just do your own research on rates and what you think you can afford. Not to mention penalty fees, etc.

DO NOT pick one because it has a good rate. That will tempt you to charge things you cannot afford. Don't get caught in that trap. Get one with a good intro deal ($100 statement credit after $500 spent or $40 off your first purchase) and good rewards. The amazon card is awesome.

Can you get someone to cosign with you?


Having no credit at all will make it hard for you to get one.

I originally began building credit when my dad cosigned with me so I could get a Circuit City credit card and I got a TV with the 12 months no interest promotion and paid it off in two or three months.

I am currently employed and have been at the same place for over a year, pretty close to 2. I can provide paystubs so that's not an issue.

I plan to pay it off every month and only charge it for things I can pay for. I've read up on tips like that so I should be okay. I'm just a little confused on the percentages and which rewards programs are better.

I don't fly often enough that flyer miles would be good for me.

Sadly, I don't have anyone I can cosign with. My mother lives too far away. I'm old enough to get one on my own, just no credit to speak of. I was supposed to get some credit through T-Mobile when I first got my phone but nothing.

I have the Amazon card and love it.

Triple points at Amazon, double points on gas, dining and pharmacy and single points everywhere else.

I order from Amazon pretty much at least once a week so I get a lot of points and the credit is great. Especially since it just gets added to your account each month (every 100 points=$1) rather than having to wait to hit 2,500 to get a $25 GC like before.

I use it for pretty much every purchase and pay it off in full each month so the reward points are just free cash.

[quote name='EnvyNeko']I am currently employed and have been at the same place for over a year, pretty close to 2. I can provide paystubs so that's not an issue.

I plan to pay it off every month and only charge it for things I can pay for. I've read up on tips like that so I should be okay. I'm just a little confused on the percentages and which rewards programs are better.

I don't fly often enough that flyer miles would be good for me.

Sadly, I don't have anyone I can cosign with. My mother lives too far away. I'm old enough to get one on my own, just no credit to speak of. I was supposed to get some credit through T-Mobile when I first got my phone but nothing.[/QUOTE]

If you have consistent employment you should be able to find a company to give you a card without a co-signer.

Since you plan on paying off your card in full every month, you don't need to pay attention to percentage rates. So, just look for what you want rewards-wise. Do you want cash back, gift cards, airline miles, purchase points, etc. I use mainly AmEx and some Visa. My rewards programs involve cash back, hotel rewards, or airline miles because I travel a lot.

The Amazon card is good. Pretty much everyone takes Visa, no annual fee, points don't expire, and you shop there often, so that's a no-brainer for you.

Be on the lookout for annual fees. Check the card's perks. For example, some AmEx and Chase Signature cards will double a manufacturer's warranty; great for electronics purchases.

Good luck and kudos to you for researching this and not signing up for every credit card so you can get a free t-shirt or mug.

Alright. I'll give the Amazon card a shot. I think that one would work the best for me.

[quote name='EnvyNeko']Alright. I'll give the Amazon card a shot. I think that one would work the best for me.[/QUOTE]

You should be getting like $40 off your purchase. Look for a promo. That's how they got me to bite.

[quote name='parKer']Be on the lookout for annual fees. Check the card's perks. For example, some AmEx and Chase Signature cards will double a manufacturer's warranty; great for electronics purchases.[/QUOTE]

AmEx charges an annual fee for some cards and it isn't accepted everywhere, but it is a good card. They bought me a new iPad when it was stolen from my apartment, just because I had bought it on my AmEx card recently.

I was trying to get one a few months ago but kept getting denied. I am going to try getting one again now that I have been at my job longer. I basically just want one to put things like gas and going out expenses on. I plan to pay it off every month as well.

[quote name='Access_Denied']AmEx charges and annual fee and it isn't accepted everywhere, but it is a good card. They bought me a new iPad when it was stolen from my apartment, just because I had bought it on my AmEx card recently.[/QUOTE]


Wrong.

Although all of my AmEx cards have an annual fee, AmEx's Clear card has no annual fee, yet it still has some of the purchasing perks that the other AmEx cards have, such as the doubling of manufacturers' warranties. AmEx's Blue card also has no annual fee. There are at least 5 AmEx cards without annual fees.

[quote name='Access_Denied']AmEx charges and annual fee and it isn't accepted everywhere, but it is a good card. They bought me a new iPad when it was stolen from my apartment, just because I had bought it on my AmEx card recently.[/QUOTE]

Your ignorance is outstanding.

Blue Cash Everyday = No annual fee.
Hilton HHonors = No annual fee.

Those are just two of four cards I have from AMEX.

OP go to:
-http://creditcardforum.com/
-myfico forums
-credit boards

Ignore all the terrible advice in this thread.

I'll throw my 2 cents in for a finisher. Chase Freedom. Good starter card and even people like me who have almost $100k in available credit still appreciate it's bonus catagories each quarter.

[quote name='EnvyNeko']Alright. I'll give the Amazon card a shot. I think that one would work the best for me.[/QUOTE]

I have the amazon visa and it's a worthless pile of crap. I'm going to keep it open only because of no annual fee and to extend the age of accounts on my credit reports.

Everyone needs to start somewhere. Getting in with Chase and Citi early helps you further down the line when you want Amex (they require some credit history *clean history* to get in with them). Make sure to make all payments on time. One late payment can hurt your credit something fierce and will cause lenders to avoid you.

Feel free to PM me. I'm a bonus churner and it took years to clean my credit up. I trashed it at 19 years old and it took an incredibly long time to repair it.

[quote name='Calipso']Your ignorance is outstanding.

Blue Cash Everyday = No annual fee.
Hilton HHonors = No annual fee.

Those are just two of four cards I have from AMEX.

OP go to:
-http://creditcardforum.com/
-myfico forums
-credit boards

Ignore all the terrible advice in this thread.

I'll throw my 2 cents in for a finisher. Chase Freedom. Good starter card and even people like me who have almost $100k in available credit still appreciate it's bonus catagories each quarter.



I have the amazon visa and it's a worthless pile of crap. I'm going to keep it open only because of no annual fee and to extend the age of accounts on my credit reports.

Everyone needs to start somewhere. Getting in with Chase and Citi early helps you further down the line when you want Amex (they require some credit history *clean history* to get in with them). Make sure to make all payments on time. One late payment can hurt your credit something fierce and will cause lenders to avoid you.

Feel free to PM me. I'm a bonus churner and it took years to clean my credit up. I trashed it at 19 years old and it took an incredibly long time to repair it.
[/QUOTE]

Sending a virus now!

Amazon card will be good.

Yeah, it's kind of pointless to have a bunch of different rewards card. It's good to have a lot of available credit as that can help your credit rating. But for rewards you want to find one, maybe two, that really fit your spending habits and usages so you maximize the amount of awards you earn, and are earning rewards that are useful to you. i.e. a frequent flyer reward card is a waste on someone that doesn't travel much as most of the point multipliers are earned through travel and free plane tickets aren't as useful as cash back or store credit etc. if someone hates travel. But for someone who travels a ton for work, that may be the best option as they'll rack up points quickly (especially if they can buy their own airfare for work and get reimbursed) and get a lot of free flights for personal travel.

[quote name='Calipso']Your ignorance is outstanding. [/QUOTE]

Jesus ing Christ people, calm down. I accidentally said "Amex charges fees" instead of "Amex charges fees for some cards". It's not that big of a deal. Simply correctly me and saying that there are only fees for select cards would have worked. No need to be a dick about it.

[quote name='fatmanforlife99']Sending a virus now![/QUOTE]

Meh. I pull my reports daily with USAA and the joke that is CreditKarma. Not too worried about identity theft. Now messing with all the porn I have on my D and E drives in my desktop......yea I would be butthurt over that.

[quote name='Calipso']
[/QUOTE]

Are you saying those are all cards you have currently open?

If you get denied for the Amazon card, try your local bank- the one that you deposit your paychecks into. That is how I got my first card with no credit history. They were willing to give me a $1000 limit and a rewards card with no annual fee because they had my cashflow history on hand.

[quote name='Dead of Knight']If you get denied for the Amazon card, try your local bank- the one that you deposit your paychecks into. That is how I got my first card with no credit history. They were willing to give me a $1000 limit and a rewards card with no annual fee because they had my cashflow history on hand.[/QUOTE]
This.

It's tougher to get a card today than it was about 5 years ago. My local credit union was where I got my first card. In my opinion, the people I've dealt with for the past 10 or so years were always there for me in a credit card or car, soon to be a home.

You guys realize credit card reward points are one big scam, right?

The credit card companies charge merchants fees to process credit cards. These fees get passed to the consumer as reward points. But in order to pay the processing fees, the merchants have to raise the price charged for their goods.

[quote name='Morrigan Lover']You guys realize credit card reward points are one big scam, right?

The credit card companies charge merchants fees to process credit cards. These fees get passed to the consumer as reward points. But in order to pay the processing fees, the merchants have to raise the price charged for their goods.[/QUOTE]

Merchant fees are a tax deductible cost of doing business just like paying salaries, rent, etc. The merchants are not being forced to accept credit cards. It is up to them to decide whether the extra sales they get from accepting credit cards is worth paying swipe fees. If they do accept cards, these costs are built into the price of goods regardless of whether you use rewards cards or not, so you might as well use them and get rewards for stuff you were going to buy anyway rather than use cash and get nothing.

[quote name='Morrigan Lover']You guys realize credit card reward points are one big scam, right?

The credit card companies charge merchants fees to process credit cards. These fees get passed to the consumer as reward points. But in order to pay the processing fees, the merchants have to raise the price charged for their goods.[/QUOTE]

unless they charge a different amount between cash and card, then why pay with cash?

[quote name='Morrigan Lover']You guys realize credit card reward points are one big scam, right?

The credit card companies charge merchants fees to process credit cards. These fees get passed to the consumer as reward points. But in order to pay the processing fees, the merchants have to raise the price charged for their goods.[/QUOTE]

uh... you're.... wrong.

It's not like gas stations where you pay a different price cash vs credit.

If I'm gonna spend $100 at a retail store, should I:

1. Pay $100 cash
2. Pay $100 credit and get nothing
3. Pay $100 credit and get $1 back

seems like an easy choice to me.


[quote name='Calipso']

I have the amazon visa and it's a worthless pile of crap. I'm going to keep it open only because of no annual fee and to extend the age of accounts on my credit reports.
[/QUOTE]

Sorry, what? I can see if you don't shop amazon a lot that it wouldn't be that useful but how is it a "worthless pile of crap"? Talk out of your hat much? Tell me, for someone who does spend a lot at amazon, who else is going to give me more than 3% on amazon purchases?

[quote name='Morrigan Lover']You guys realize credit card reward points are one big scam, right?

The credit card companies charge merchants fees to process credit cards. These fees get passed to the consumer as reward points. But in order to pay the processing fees, the merchants have to raise the price charged for their goods.[/QUOTE]

I haven't paid for a flight in 2 years.

Currently I have:
-67,000 Southwest Points
-35,000 Delta Skymiles
-30,000 UR Points (Chase Sapphire Preferred transfers)
-15,000 Jet Blue Points.

Huge scam there eh? What a boob.


[quote name='kodave']Are you saying those are all cards you have currently open?[/QUOTE]

Yes. 90% of them are pointless, but I make one charge per six months to keep them open. Age of accounts and available credit + utilization are the reasons I havent' closed them. I churn credit card bonuses.

[quote name='confoosious']uh... you're.... wrong.

It's not like gas stations where you pay a different price cash vs credit.

If I'm gonna spend $100 at a retail store, should I:

1. Pay $100 cash
2. Pay $100 credit and get nothing
3. Pay $100 credit and get $1 back

seems like an easy choice to me.




Sorry, what? I can see if you don't shop amazon a lot that it wouldn't be that useful but how is it a "worthless pile of crap"? Talk out of your hat much? Tell me, for someone who does spend a lot at amazon, who else is going to give me more than 3% on amazon purchases?[/QUOTE]

I buy Amazon giftcards at $100 a pop for 5% back with my rewards cards. 3% is pointless. The Amazon Visa is one of the low tier cards that really offers nothing of value. If you have the Blue Cash Preferred from Amex you get 6% back. Buy some amazon gift cards at a grocery store and there you go. Discover had Amazon.com at 5% for Q4 2012.

Thanks for playing.

[quote name='burritoman']This.

It's tougher to get a card today than it was about 5 years ago. My local credit union was where I got my first card. In my opinion, the people I've dealt with for the past 10 or so years were always there for me in a credit card or car, soon to be a home.[/QUOTE]

50% right/50% wrong. If you have crap credit it's tougher. Cards now are still easy as cake to get. My g/f had almost ZERO credit and got approved for Citi Foward (before discontinued it) and AMEX Blue Cash Everyday.

If you don't have anything negative on your credit reports, getting credit or building credit is easy. I always recommend getting in with a local credit union and Citi. Citi is good with giving first timers cards.

[quote name='Calipso']Yes. 90% of them are pointless, but I make one charge per six months to keep them open. Age of accounts and available credit + utilization are the reasons I havent' closed them. I churn credit card bonuses.[/QUOTE]

How do you churn credit bonuses if you make one charge per six months on most of them? Making one gigantic purchase on them every 6 months?

Also, I'm surprised no one has flagged you as a liability for having that many cards open all at once. Maybe you got in before they had to start caring about that stuff again?

[quote name='Calipso']
I buy Amazon giftcards at $100 a pop for 5% back with my rewards cards. 3% is pointless. The Amazon Visa is one of the low tier cards that really offers nothing of value. If you have the Blue Cash Preferred from Amex you get 6% back. Buy some amazon gift cards at a grocery store and there you go. Discover had Amazon.com at 5% for Q4 2012.

Thanks for playing.
[/QUOTE]

Ooooh discover had it for a quarter?! WOWOWEEEEEWA!

And your 6% blue cash preferred is a annual fee card that only gives you 6% on the first $6000 of purchases.

To say 3% is "pointless" shows what a smug blowhard you are. The guy is asking about his FIRST credit card. He could do a lot worse than the amazon rewards visa.

We're just trying to help this dude figure out his first card, not playing biggest card penis, okay?

Thanks for playing.

We use a chase freedom for everything except costco - where we use our costco amex. I like the freedom because they offer discounts on redeeming your points towards certain gift cards. I usually pick up amazon or home depot when they are discounted. they also offer bonus 5% categories which we tend to max out each quarter (max is pretty low forget what it is though.) I've thought about switching back to the amazon card (I had it years ago) since we make so many purchases there.

The comment about the credit union/local bank is also a good one. If no one else will - they will likely get you started with a card. I started out at a credit union an still have a checking account with one and had great experience with them.

Biggest ... card ... penis?

I too was interested in getting a credit card, but it all sounds so confusing. I thought credit unions were good for savings accounts but I never heard anything about having a credit card through them.

Do any of you guys have any experiences with Capital One?

[quote name='kodave']How do you churn credit bonuses if you make one charge per six months on most of them? Making one gigantic purchase on them every 6 months?

Also, I'm surprised no one has flagged you as a liability for having that many cards open all at once. Maybe you got in before they had to start caring about that stuff again?[/QUOTE]


It doesn't seem like you understand what credit card churning is. Churning is all about the sign-up bonuses. It's not about what card gives you the most rewards for your money. In the past, cards used to limit sign-up bonuses to once per cardholder per lifetime. Now, cards are offering sign-up bonuses in full (meaning they forget about your first sign-up bonus and don't pro-rate your bonus) every few years. No more once in a lifetime stuff.

So whether he spends $1 or $1000 every 6 months doesn't matter. He just has to prevent the card from going dormant by making a charge every so often. The catch with churning is you have to pick the right cards and you must meet the minimum purchasing requirement that are of the "spend X dollars in Y amount of time to get Z bonus points" type.

If done correctly, you are able to net hundreds of thousands of points without ever getting on a plane. However, I am surprised at his "stats." A LOT lower than what I'm used to seeing from churners as well as frequent flyers.


[quote name='confoosious']Ooooh discover had it for a quarter?! WOWOWEEEEEWA!

And your 6% blue cash preferred is a annual fee card that only gives you 6% on the first $6000 of purchases.

To say 3% is "pointless" shows what a smug blowhard you are. The guy is asking about his FIRST credit card. He could do a lot worse than the amazon rewards visa.

We're just trying to help this dude figure out his first card, not playing biggest card penis, okay?

Thanks for playing. [/QUOTE]


If you compare him to the average credit card churner, he has a significantly smaller card penis, presumably because he effed up his credit at 19. So, his compensatory mechanism kicks in and compels him to post his average credit card limits on a gamer forum. Not only is that sad, it's tactless.

what is the point of keeping cards open once you've received the sign up bonus? (and kept it around sufficiently long.) Just to pad the length of credit stats?

I have a credit card that I've had forever. Like 17 years. Wouldn't keeping that one open be sufficient? If I were to start churning (and I wouldn't really, just curious), wouldn't I be able to ditch the 2 and 3 year old cards?

Lately, I've decided to get one of every type of credit card just to take advantage of the deals each one has. I loved the amex sync deals over the holidays. I figure I could get 1 of discover, chase, citibank, amex, capital one just to take advantage of whoever has the best deal at the moment. I might be missing a few obvious ones. I have everything already but the capital one I listed.

[quote name='parKer']It doesn't seem like you understand what credit card churning is. Churning is all about the sign-up bonuses. It's not about what card gives you the most rewards for your money. In the past, cards used to limit sign-up bonuses to once per cardholder per lifetime. Now, cards are offering sign-up bonuses in full (meaning they forget about your first sign-up bonus and don't pro-rate your bonus) every few years. No more once in a lifetime stuff.

So whether he spends $1 or $1000 every 6 months doesn't matter. He just has to prevent the card from going dormant by making a charge every so often. The catch with churning is you have to pick the right cards and you must meet the minimum purchasing requirement that are of the "spend X dollars in Y amount of time to get Z bonus points" type.

If done correctly, you are able to net hundreds of thousands of points without ever getting on a plane. However, I am surprised at his "stats." A LOT lower than what I'm used to seeing from churners as well as frequent flyers.[/QUOTE]

I keep my oldest cards open for the reason you stated.

My numbers are low also because I haven't paid for a flight in two years. I go to Vegas three or four times a year and my points pay for my g/f and I to fly out there. I also have close to 80,000 points on Hilton HHonors. I don't hoard points, I just use em as I get em. I also churn based on avaliblity.

I just used almost all my jetblue points on our Vegas flights in June/July 2012, Nov 2012. I used old Southwest Awards on the last superbowl trip (2013) to Vegas. I have 33 available credits on Airtran with two free business class upgrades that I'll be using in the next few weeks.

If you compare him to the average credit card churner, he has a significantly smaller card penis, presumably because he effed up his credit at 19. So, his compensatory mechanism kicks in and compels him to post his average credit card limits on a gamer forum. Not only is that sad, it's tactless.

Click to expand...

My income is around $30,000 per year. Having triple your income in available credit isn't exactly bad.

I'm posting my limits and my cards because it shows some validity in my statements. What exactly do you have for flights available?

/shrug

If you have a PS3, grab the PlayStation card. Make a single purchase of any amount, and you'll receive a $50 PSN code and a year of PS+. Sweet deal. Plus 10% back on anything you spend on the PSN Store, 3% on fast food, and 1% elsewhere. I've racked up probably another $50 or so in the past ten months by putting all of my bills and everything on it.

[quote name='confoosious']what is the point of keeping cards open once you've received the sign up bonus? (and kept it around sufficiently long.) Just to pad the length of credit stats?

I have a credit card that I've had forever. Like 17 years. Wouldn't keeping that one open be sufficient? If I were to start churning (and I wouldn't really, just curious), wouldn't I be able to ditch the 2 and 3 year old cards?

Lately, I've decided to get one of every type of credit card just to take advantage of the deals each one has. I loved the amex sync deals over the holidays. I figure I could get 1 of discover, chase, citibank, amex, capital one just to take advantage of whoever has the best deal at the moment. I might be missing a few obvious ones. I have everything already but the capital one I listed.[/QUOTE]

http://en.wikipedia.org/wiki/Credit_score_in_the_United_States

[quote name='confoosious']what is the point of keeping cards open once you've received the sign up bonus? (and kept it around sufficiently long.) Just to pad the length of credit stats?

I have a credit card that I've had forever. Like 17 years. Wouldn't keeping that one open be sufficient? If I were to start churning (and I wouldn't really, just curious), wouldn't I be able to ditch the 2 and 3 year old cards?

Lately, I've decided to get one of every type of credit card just to take advantage of the deals each one has. I loved the amex sync deals over the holidays. I figure I could get 1 of discover, chase, citibank, amex, capital one just to take advantage of whoever has the best deal at the moment. I might be missing a few obvious ones. I have everything already but the capital one I listed.[/QUOTE]


Edit: Regarding closing accounts, totally forgot, but this will describe credit utilization ratio better than I can.
http://www.myfico.com/crediteducation/questions/credit-cards-and-score.aspx


I've seen people do it different ways. Some people will keep a card if they like the perks enough and if it's a card where a bonus is given again (I want to say there was a high-annual fee AmEx card that did that), but most will close it and restart later. The people over at a travel forum that I frequent have made churning into an art.

When looking at the cards, you have to pay attention to the issuing bank. Each bank will only give you so much credit and churners take advantage of that numbers game. For example, they will do an app-o-rama, applying for a Chase Southwest, Citibank American Airlines, and a third airlines card that isn't issued by Chase or Citibank, all at the same time. Look at Calipso's list. He has several cards issued by the same bank and his credit limit totals per bank are about the same range. I'm guessing he did several app-o-ramas at different times.

Sorry to keep referring to you, Calipso lol. And, I was only slamming you for posting your actual amounts, as it's like discussing your salary with co-workers, socially inappropriate. But, I now see your point at needing data to prove your point. Also, kudos that you've dug your credit rating out of the hole. It was probably not easy and required diligence and self-control.


[quote name='Calipso']
/shrug
[/quote]


Hey, now. No hard feelings.

[quote name='parKer']Edit: Regarding closing accounts, totally forgot, but this will describe credit utilization ratio better than I can.
http://www.myfico.com/crediteducation/questions/credit-cards-and-score.aspx[/quote]
This is exactly why you shouldn't close your cards with at least a little forethought into utilization ratios and the need for long term financing in the immediate future.

I've seen people do it different ways. Some people will keep a card if they like the perks enough and if it's a card where a bonus is given again (I want to say there was a high-annual fee AmEx card that did that), but most will close it and restart later. The people over at a travel forum that I frequent have made churning into an art.

When looking at the cards, you have to pay attention to the issuing bank. Each bank will only give you so much credit and churners take advantage of that numbers game. For example, they will do an app-o-rama, applying for a Chase Southwest, Citibank American Airlines, and a third airlines card that isn't issued by Chase or Citibank, all at the same time. Look at Calipso's list. He has several cards issued by the same bank and his credit limit totals per bank are about the same range. I'm guessing he did several app-o-ramas at different times.

Sorry to keep referring to you, Calipso lol. And, I was only slamming you for posting your actual amounts, as it's like discussing your salary with co-workers, socially inappropriate. But, I now see your point at needing data to prove your point. Also, kudos that you've dug your credit rating out of the hole. It was probably not easy and required diligence and self-control.

Click to expand...

Actually, this is a myth that was perpetuated by capital and management as a way to pay their workers less and fight unionization/collective bargaining. There's really no harm in knowing how much people make in their jobs or how else would people know how much to negotiate for their wages?

Back on topic. I wrecked my credit when I was like 18 too and neglected it for years. Made a mistake when cleaning it up which hurt my score and went with a credit union with a super low limit($300) just to build history. Now, I have a Discover card that increases my limit every 6 months and I must've racked up at least $1000 cashback bonus over the past 5 years and paid maybe $50 in interest because I usually pay off the balance every month. When I was shopping Amazon a lot, free one day shipping and 5% back was the bee's knees.

[quote name='parKer']Edit: Regarding closing accounts, totally forgot, but this will describe credit utilization ratio better than I can.
http://www.myfico.com/crediteducation/questions/credit-cards-and-score.aspx

[/QUOTE]

Yeah but if you don't carry a balance, it doesn't matter right?

I mean I charge a couple grand every month so I'm sure my balance when the credit companies pull my record isn't $0, which I believe is a good thing. But if I'm not really concerned about my ratio, it shouldn't matter.

My oldest card (the 17 yo one) gives me basically no rewards. I just keep it around because it's old and I know that's good.

I'm just saying if I have a 2-3 year old card, what's the harm in canceling it if it doesn't offer any rewards. Or that I've used up the sign-up reward.

[quote name='parKer']It doesn't seem like you understand what credit card churning is. Churning is all about the sign-up bonuses. It's not about what card gives you the most rewards for your money. In the past, cards used to limit sign-up bonuses to once per cardholder per lifetime. Now, cards are offering sign-up bonuses in full (meaning they forget about your first sign-up bonus and don't pro-rate your bonus) every few years. No more once in a lifetime stuff.[/QUOTE]

Ah okay, thanks for clearing that I up. I thought he was in it for the "earned" rewards rather than the sign-up bonuses. I didn't know signing up for so many multiple cards like that is even a thing, and again, I'm surprised they let people get away with it. For example, he has triple his income in credit (and not even a high income to begin with) and he had bad credit history in the past - I'm shocked none of the companies see that as a red flag. With that high of a credit limit and with that many cards he could do some real damage if he wanted to. But I'm not in the credit industry so obviously I don't know what their standards are.

I always just shake my head at people who do crazy things to get money--be it credit card churning, flipping games etc.

If people had put half as much effort into education/job training/their career they'd make a decent income and not have to resort to such crap to afford games, plane tickets etc.

[quote name='dohdough']Actually, this is a myth that was perpetuated by capital and management as a way to pay their workers less and fight unionization/collective bargaining. There's really no harm in knowing how much people make in their jobs or how else would people know how much to negotiate for their wages? [/QUOTE]


Haha, yeah I know where you're coming from, but I'm talking more about how topics like that among strangers can be a touchy subject, where there's a fine line between information sharing and bragging.


[quote name='confoosious']Yeah but if you don't carry a balance, it doesn't matter right?

I mean I charge a couple grand every month so I'm sure my balance when the credit companies pull my record isn't $0, which I believe is a good thing. But if I'm not really concerned about my ratio, it shouldn't matter.

My oldest card (the 17 yo one) gives me basically no rewards. I just keep it around because it's old and I know that's good.

I'm just saying if I have a 2-3 year old card, what's the harm in canceling it if it doesn't offer any rewards. Or that I've used up the sign-up reward.[/QUOTE]


But, you should be concerned about your utilization ratio though as it can affect your FICO?

If you don't like that particular card because of the lack of rewards, you could go to the issuing bank's website and see if there is a rewards card that you do like better. Then, call the issuer and see if they will upgrade you to that new card without resubmitting an application and without running a credit check again.

As far as harm is concerned, you'd really have to look at your cards' ratios and decide from there. Lol that's why I haven't been answering your question - it's because it's one of those "it depends" answers and I am not a professional in the field. Sorry if I gave that impression; I just really came back here to explain the churning, which looks weird now that I've been typing that word so much.


[quote name='kodave']Ah okay, thanks for clearing that I up. I thought he was in it for the "earned" rewards rather than the sign-up bonuses. I didn't know signing up for so many multiple cards like that is even a thing, and again, I'm surprised they let people get away with it. For example, he has triple his income in credit (and not even a high income to begin with) and he had bad credit history in the past - I'm shocked none of the companies see that as a red flag. With that high of a credit limit and with that many cards he could do some real damage if he wanted to. But I'm not in the credit industry so obviously I don't know what their standards are.[/QUOTE]


I'm not in that field so I can't comment on that either.

But, I don't do any churning myself. Too much work and I don't have the need to do so. I earn enough mileage points on my own. I just learned about the practice from being on that travel forum for years. It's interesting to see how many hoops people will jump through and risks they will take for bonus miles.

I'm fairly well versed in fico scores. The reason I'm not concerned is because my ratio is 0% depending on when they pull the report.

I just didn't understand the justification for keeping old cards arounds by "churners."

[quote name='confoosious']I'm fairly well versed in fico scores. The reason I'm not concerned is because my ratio is 0% depending on when they pull the report.

I just didn't understand the justification for keeping old cards arounds by "churners."[/QUOTE]


Ah, gotcha. It looked like you were asking about yourself. I have no clue. Like I said before, as far as the travel forum goes, some churners keep cards for the travel perks not related to the sign-up bonus. I'm not a churner, but I have a card that most of those people like and keep. The AmEx Gold Delta SkyMiles card. One free check-in for you and your travel companions, priority boarding, Sky Club access perks, etc.

[quote name='dmaul1114']I always just shake my head at people who do crazy things to get money--be it credit card churning, flipping games etc.

If people had put half as much effort into education/job training/their career they'd make a decent income and not have to resort to such crap to afford games, plane tickets etc.[/QUOTE]


The funny thing is that a good majority of people who do the credit card churning are actually people who do make a decent income and those with advanced degrees, business people and high-income professionals. It isn't a small-time thing at all like game flipping or mediocre churning to get a few plane tickets or an upgrade to first class here and there. These people spend tens of thousands of dollars in a matter of a couple of months in order to get hundreds of thousands of miles (some try for the million mark) because of the minimum purchasing requirements for their selected cards. So, their credit limits and accompanying bonuses are way beyond those of people like Calipso. And, most importantly, they know how to do it without significantly affecting their FICO.

I'm not saying that churning is right, but it is intriguing and shouldn't be dismissed like a Slickdeals/games hoarder or classed at that level. You see it as crap and they would probably view our video game forum as crap. :lol:

Fair enough I guess. I'm just not a big fan of people wrapped up in money making schemes regardless of level. I'm just not one that's much concerned with money and consumeristic shit in general. I like my job, make a decent salary that supports the things I like to do while also building savings and beyond that I don't worry about things like bargain shopping (don't really come to cag for deals any more), having the best credit cards or making the most of investments (I just picked a decent mutual fund for my retirement accounts and otherwise pay no attention to it). Much less schemes to rack up reward points, frequent flyer miles etc.

But to each their own of course.

I'm not either.

I wouldn't mess with my credit score to do it but I'd like to know how they do it.

I'm happy just rotating my rewards cards. That's about as involved as I can get.

I visit the fatwallet finance forums every once in a blue moon. There's tons of folks there playing with credit cards. I remember 0% apr balance transfers (no fee) were a big deal a long time ago to get sign up bonuses and such. I think there are bt fees now though on most cards. It's a complex thing for sure. I've always been slightly curious but not really interested enough to do an app-o-rama or anything. It just doesn't seem that fun to me and I think for some it's just tons of fun. It's sort of a hobby for them. But for some, just the idea of making money is fun. I don't really get a thrill out of making money.

Yeah, I mean other than the problems inherent with rampant consumerism, there's nothing wrong with making a hobby out of finding deals or making money by flipping etc.

Just not my cup of tea as I hate shopping and dealing with money in general. I don't buy that much frivolous stuff these days as I work a lot and spend a lot of free time doing stuff with the girlfriend, running/exercising etc. that doesn't cost a lot of money outside of eating out, going to movies/concerts etc. Combine that with being fortunate to have a good job and make a decent salary and I just don't have to worry much about money as I'm able to save a good bit each month without paying much attention to expenses.

It's smart to be frugal and save money. But I don't think most people flipping games, abusing reward systems etc. are saving much money. They're just finding more ways to buy shit they don't really need or even want half the time. Case in point, all the CAGs who have huge backlogs of games they'll never play from buying shit just because it's a deal.