New to the credit card churning game - Advice?

Discussion in 'Newbies' started by alvarez16, Jan 6, 2014.  |  Print Topic

  1. alvarez16

    alvarez16 Member

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    Hey all,

    I've been a member of these forums for a while and want to start taking advantage of all these bonus credit card offers. I fly weekly for work so I have about 50K miles on each of the major airlines (Delta, US Air, American).

    About me:

    1. I'm in my early 20's.
    2. Have had 1 personal (Citi Forward, gives me 4x points on food which is my main spend) and 1 corporate/company credit card (Amex) for the past few years that I've always paid fully and on-time (carry $0 balance).
    3. I spend about $2,000 a month on my personal credit card.

    My main questions are:

    1. How does applying to new credit cards affect your credit score? I've read it reduces your score 5-10 points but does that vary depending on how many cards I have?
    2. Based on currently just having one card, what sort of approach should I take? Open a new card today, wait 6 months to open the next, and so forth?
    3. How long do/should I keep each card open? Ideally, I open it, spend whatever is required the first 3 months and then close it but I can only assume this hurts your credit score.

    I've done a lot of reading through the forums but haven't been able to find the answers I'm looking for BASED on my habits / credit history.

    I'd really like to hear your thoughts.

    P.S - If this has already been discussed, I apologize for posting again, please link me to thread.
     
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  2. jwsky
    Original Member

    jwsky Silver Member

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    I will answer question #3 for you. Keep the card open till they ask for a fee. Then, call and ask if they will drop the fee.

    Generally, it helps your credit to keep the cards open for a long time.
     
    mapenn and MX like this.
  3. mrx900
    Original Member

    mrx900 Silver Member

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  4. mapenn

    mapenn Silver Member

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    I started by getting familar with a couple of blogs - Million Mile Secrets and Frugal Travel Guy. There are hundreds of other blogs. But after you understand the basics, they all start to pretty much repeat the same info.

    I think it depends on your travel goals. What do you want to accomplish? My wife and I travel primarily domestically. So, we started out by acquiring as many Southwest airline points as possible, and even earned the Companion Pass (working on that again right now!). Chase Bank has 4 versions! The also have the Membership Rewards program, which very easily converts into Southwest and United airline miles.

    The most important advise is to never pay late. In fact, I would never advise a friend or family member to get involved in my "hobby", because I have been on the other side of credit card debt; and it took years and years to pay them off. If you are starting in your 20's -- start small, build slowly, and absorb all the info you can!
     
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  5. alvarez16

    alvarez16 Member

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    Thanks for the tips so far.
     
  6. davef139

    davef139 Gold Member

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    1. Yes inq will effect score, usually only for 6months or so. Although too many reguardless of time on report can have adverse effects rejection based solely on that.
    2. Don't dive into things espcially if limited history, you will likely get denials based on lack of history.
    3. Generally you want a few long standing cards this should help overall rather then seeing accounts for 1year then closed.

    I can't give good examples as I had the most accounts in the glory days of credit being issued to anyone (pre 08). At a time I had 25lines and could indebt myself about 20x of what I made in a year. If you get too aggresive there are adverse actions banks can and will take. I had 3 chase accounts closed without notice.
     
  7. gconnery

    gconnery Silver Member

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    Pick some credit cards you are going to keep for a long time. I'd suggest something like a Chase Sapphire Preferred, maybe an Amex SPG. Apply for those first.
     
  8. satman40

    satman40 Gold Member

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    Keep one card, as your hold card,
    I use Credit Karma or something to follow your score.
    Stick a sticker on each card, spend, point plus, month to end.
    Every 3 months works for me,
    Go for the one's that you can use, it is about ROI,
    A small bite every day will add to your weight,
    Open a checking account I like Chase, INK GIVES 5 X
    Alway pay in full...CC Auto Pay...
    Never done this before...
     
  9. Zomby Woof

    Zomby Woof Silver Member

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  10. Free2travel

    Free2travel Silver Member

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    Sorry for a newbie question but what's the advantage of opening a chase checking account?
     
  11. gconnery

    gconnery Silver Member

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    They generally have offers for $200 in cash for opening a Chase Checking. Not sure what else.
     
  12. servo

    servo Silver Member

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    The deeper your relationship with Chase, the more cards they will approve you for. I have a friend with 9 different Chase cards because he has almost all of his banking relationship (including mortgage) with them. I have 5 personally, but I doubt I could get more without having to close one of my existing ones, since I don't have any other business with Chase. Churning the Chase checking bonuses isn't recommended.
     
  13. gconnery

    gconnery Silver Member

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    Not sure how you're counting. I have three personal currently and three business. No Chase checking.
     
  14. satman40

    satman40 Gold Member

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    Chase is starting to ask for the average balance of your business checking.

    My last CC I called the recon line, I ask them to check my balance, and I got the card

    I think it shows stability, and they are checking.

    At some point the banks will tighten up.
     

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