sdifox
No Lifer
- Sep 30, 2005
- 95,208
- 15,234
- 126
Brainonska511
Lifer
- Dec 10, 2005
- 24,137
- 6,949
- 136
Yeah, I realize some offers could be better, but it was a kill two birds with one stone sort of thing: get a second card with no foreign transaction fee, and get some free money at the same time. And then also not have to worry about the phone call in a year to close/downgrade to avoid a yearly fee. Travel stuff could be nice, but my partner is in medical school, so not much time on the calendar for those adventures at the moment.
Plus, I don't have particularly high monthly spending - most stuff is groceries, which I just throw on a Blue Cash Preferred for the 6% back.
Red Squirrel
No Lifer
Not everyone is lucky to get rich, so the next best thing is to just avoid debt as much as you can. The only "good" debt is a mortgage, and that's because the alternative is to rent, and you'd be spending just as much per month on rent, than you would a mortgage payment. At least eventually you pay it off. You want to try to pay as much as you can though, especially at the start of the mortgage, since most of the money goes to interest.
Unfortunately all this is easier said than done though, as costs of living keep going up so it means we have less and less disposable income unless we want to work even harder and harder such as getting a second job, but there is a limit to how hard one can work.
Unfortunately all this is easier said than done though, as costs of living keep going up so it means we have less and less disposable income unless we want to work even harder and harder such as getting a second job, but there is a limit to how hard one can work.
Thump553
Lifer
- Jun 2, 2000
- 12,689
- 2,448
- 126
That's perfectly fine. IMO anything over 800 (maybe even 750) is just bragging rights. You're at the level where if you accidentally pay your electric bill late once you'll probably knock 20 points off your score.
ultimatebob
Lifer
- Jul 1, 2001
- 25,135
- 2,445
- 126
The system wants to keep you in debt. The only solution. GET RICH!!
There are people on YouTube who sell courses. Make $10k a day easily. How. Just by selling on Amazon.
Or, by their course on dogecoin. Millions await!
Much coin, very wow!
Although, I've heard that all the cool kids are buying Squid Games tokens instead. It's going to be next killer DeFi app... and it's gone
Some of them are pretty easy. For example with Chase I just send them a message from my Chase account and its closed within 24 hours. Takes like 2 minutes. You can either setup a calendar reminder or just wait till you get the bill with the annual fee on it and close it. All the banks give you ~30 days to cancel after that hits and they'll refund\waive the fee if you close in that window
JEDIYoda
Lifer
- Jul 13, 2005
- 33,982
- 3,318
- 126
Lost_in_the_HTTP
Lifer
- Nov 17, 2019
- 10,937
- 6,537
- 136
On card churning (opening cards to get bonuses, then closing)
www.thebalance.com
How churning can affect your credit
One of the major risks associated with credit card churning is the damage it can do to your credit. This is because the things you’ll have to do to get the best rewards — opening a lot of cards and spending on them regularly — can have a negative effect on your credit scores if you're not careful.
The number of recent applications
For example, a relatively small percentage of your credit scores is determined by the number of new credit accounts you’ve opened recently. Multiple applications in quick succession may suggest to lenders that you're in financial distress and thus a risky bet, so in general a good rule of thumb is to wait six months between credit card applications.
How banks put up guardrails against churning
While credit card issuers love having new customers, they would rather form long banking relationships with cardholders rather than acquire fleeting users. Many issuers have put measures in place to pump the brakes on churners:
www.nerdwallet.com
If you want and will genuinely use a new card, seek ones out with the best bonuses for your situation. Don't hunt cards with bigger bonuses just to get the bonus with no intent to really use the card. They're not trophies for your wall.
- It can damage your credit: Every time you apply for a credit card, the lender makes a hard inquiry into your credit report. Inquiries make up 10% of your credit score, and while a single one will typically only reduce your score by five points, you may see a more significant negative impact on your credit if you incur several in a short period of time. Opening new accounts can also lower your average credit age—a factor that's 15% of your credit score.3 4
- The odds of credit denial increase: If you've opened or applied for too many credit cards in the past 12 to 24 months, credit card issuers may deny your credit card application even if you have excellent credit. This is because lenders view excessive recent credit applications as a sign that you're in financial distress and are a credit risk.5
- It can increase your debt: Each card you sign up for will require you to meet a spending minimum to earn the welcome bonus. If you take out several credit cards, but can't afford the spending minimums, you could end up with more debt than you can repay, rendering moot any rewards you may have earned.
What Is Credit Card Churning?
Credit card churning involves frequently signing up for credit cards in order to take advantage of new card bonuses. Learn about its pros and cons.
How churning can affect your credit
One of the major risks associated with credit card churning is the damage it can do to your credit. This is because the things you’ll have to do to get the best rewards — opening a lot of cards and spending on them regularly — can have a negative effect on your credit scores if you're not careful.
The number of recent applications
For example, a relatively small percentage of your credit scores is determined by the number of new credit accounts you’ve opened recently. Multiple applications in quick succession may suggest to lenders that you're in financial distress and thus a risky bet, so in general a good rule of thumb is to wait six months between credit card applications.
How banks put up guardrails against churning
While credit card issuers love having new customers, they would rather form long banking relationships with cardholders rather than acquire fleeting users. Many issuers have put measures in place to pump the brakes on churners:
Should I Try Credit Card Churning? - NerdWallet
It's a way to quickly pile up credit card rewards, but doing it properly without damaging your credit requires great care. It's not for everyone.
If you want and will genuinely use a new card, seek ones out with the best bonuses for your situation. Don't hunt cards with bigger bonuses just to get the bonus with no intent to really use the card. They're not trophies for your wall.
nakedfrog
No Lifer
- Apr 3, 2001
- 58,215
- 12,394
- 136
It's never been listed as a "potential negative item" on any of my credit reports, and when I did end up carrying a balance, my score went down 4 points, so...
HAHAHAHHAAAAAAA YEAH RIGHT...
On card churning (opening cards to get bonuses, then closing)
- It can damage your credit: Every time you apply for a credit card, the lender makes a hard inquiry into your credit report. Inquiries make up 10% of your credit score, and while a single one will typically only reduce your score by five points, you may see a more significant negative impact on your credit if you incur several in a short period of time. Opening new accounts can also lower your average credit age—a factor that's 15% of your credit score.3 4
- The odds of credit denial increase: If you've opened or applied for too many credit cards in the past 12 to 24 months, credit card issuers may deny your credit card application even if you have excellent credit. This is because lenders view excessive recent credit applications as a sign that you're in financial distress and are a credit risk.5
- It can increase your debt: Each card you sign up for will require you to meet a spending minimum to earn the welcome bonus. If you take out several credit cards, but can't afford the spending minimums, you could end up with more debt than you can repay, rendering moot any rewards you may have earned.
What Is Credit Card Churning?
Credit card churning involves frequently signing up for credit cards in order to take advantage of new card bonuses. Learn about its pros and cons.
How churning can affect your credit
One of the major risks associated with credit card churning is the damage it can do to your credit. This is because the things you’ll have to do to get the best rewards — opening a lot of cards and spending on them regularly — can have a negative effect on your credit scores if you're not careful.
The number of recent applications
For example, a relatively small percentage of your credit scores is determined by the number of new credit accounts you’ve opened recently. Multiple applications in quick succession may suggest to lenders that you're in financial distress and thus a risky bet, so in general a good rule of thumb is to wait six months between credit card applications.
How banks put up guardrails against churning
While credit card issuers love having new customers, they would rather form long banking relationships with cardholders rather than acquire fleeting users. Many issuers have put measures in place to pump the brakes on churners:
Should I Try Credit Card Churning? - NerdWallet
It's a way to quickly pile up credit card rewards, but doing it properly without damaging your credit requires great care. It's not for everyone.
If you want and will genuinely use a new card, seek ones out with the best bonuses for your situation. Don't hunt cards with bigger bonuses just to get the bonus with no intent to really use the card. They're not trophies for your wall.
The 'damage' to your credit rating from churning is overblown if you already have good credit and don't do something dumb like pile on debt. Your score recovers in ~2 months from a hard pull esp with a new on time payment from your brand new credit issuer. My average age of accounts is ~2 years and I have 6+ hard pulls a year without issue (1 every 2-3 months year in and year out since 2012). Credit score is always around 800 (except for that one time where the reporting of my new mortgage got held up and didn't hit my credit report for ~7 months. So it ended up being the same month as I got a car loan. And, that month, since I had done my mortgage and car loan without issue I opened 2 new cards thinking '7 months since my mortgage should be enough'. Took me down to 762. But even then I was back in my normal range within ~5 months)
Some of the other points are a bit silly in that article. Like that missing payments while churning hurts your credit score. Well yeah - that happens if you're not churning too. And the 'if you take on too much debt because of churning thats bad for your score'. Again - true if you don't churn.
Also Mortgage companies don't care that much about opened accounts and even less about closed (as long as you didn't eff with your credit score) unless you really go off the deep end. We hadn't planned on moving and buying a house so my churning game was at peak game (and before more rules coming down so it was easier) when I suddenly wanted to get a mortgage. I'd had like 10-12 new accounts and closures in the last 12 months and they didn't care at all. The only real effect was all the extra paper needed to detail my recent credit history
They did, however, question a circular transaction where I opened a bank account with $15,000 in funding from a new credit card. Which, one month later, I sent that card the payment from said bank account (Ah the good ole days). I then closed the bank account and, not long after, the credit card. Just had to do a 5 minute explanation with my loan officer
They are right about one thing: It takes organization now. I have a spreadsheet where I've tracked all my applications since 2013 that includes bank, card product, date applied, bonus, and date closed. I decided to do that only for my own organization and record keeping early on and it's turned out to make for easy compliance with the various and changing issuer rules (And the article was somewhat wrong about Amex's rules. While they say its 'lifetime' in the Amex world the lifetime of that credit card record is 7 years).
Last edited:
to bad all the interest is a tax write off so there is no good reason to pay it off fast except less worries or no taxes to pay
Torn Mind
Lifer
- Nov 25, 2012
- 11,684
- 2,658
- 136
There's a lot of room to work with that most of the populace doesn't take. My mom was able to accumulate much money despite working at a job level no higher than 7-Eleven/Safeway bakery level of pay, despite a language barrier. Not to mention she got shafted early in life too, with the Cultural Revolution ending any educational path over there for well-to-doers.
IronWing
No Lifer
- Jul 20, 2001
- 69,130
- 27,074
- 136
Is this a Canadian thing because that's not how it works in the U.S.?to bad all the interest is a tax write off so there is no good reason to pay it off fast except less worries or no taxes to pay
maybe you have a bad accountant? you dont deduct interest from your taxable income? strange!
Torn Mind
Lifer
- Nov 25, 2012
- 11,684
- 2,658
- 136
Credit card interest usually isn't tax deductible, but if you're a small business owner, there are some exceptions
If you have interest fees for business-related purchases, you'd be able to deduct them. In the case of personal expenses, though, you're out of luck.
www.businessinsider.com
For most people in the U.S, we can't use CC interest as a tax deduction anymore.
IronWing
No Lifer
- Jul 20, 2001
- 69,130
- 27,074
- 136
Furthermore, even if we could, it would be a deduction, not a tax credit so we would still be out the difference between the interest paid and the reduction in taxes. It's much better to not pay interest.
waffleironhead
Diamond Member
- Aug 10, 2005
- 6,922
- 431
- 136
I think he was replying to Red paying down his mortgage as quick as possible, but still its only a deduction.
sdifox
No Lifer
- Sep 30, 2005
- 95,208
- 15,234
- 126
JEDIYoda
Lifer
- Jul 13, 2005
- 33,982
- 3,318
- 126
But your one person and as such thats not a very good sampling......it happens....opps...hahahaaaaIt's never been listed as a "potential negative item" on any of my credit reports, and when I did end up carrying a balance, my score went down 4 points, so...
HAHAHAHHAAAAAAA YEAH RIGHT...
nakedfrog
No Lifer
- Apr 3, 2001
- 58,215
- 12,394
- 136
Hm, what about... all the other people in this thread who said that paying off their credit cards didn't hurt their credit score?
IronWing
No Lifer
- Jul 20, 2001
- 69,130
- 27,074
- 136
You've been more than a bit vague in this thread. Which behaviors do you think help/damage one's credit score?
JEDIYoda
Lifer
- Jul 13, 2005
- 33,982
- 3,318
- 126
IronWing
No Lifer
- Jul 20, 2001
- 69,130
- 27,074
- 136
You are not the best judge of when you're being vague. Now you're doubling down.
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