Advice needed for credit card benefits.

[Kramerica]

So, this might be a bizarre question to ask on a Disney website, but this is the Chit Chat forum and I think anything goes, so long as it's not inappropriate.

So I'm 26, and have for the majority of my adult life used debit cards for day to day spending. A couple years ago I switched over to credit cards for my daily card. I like the rewards and benefits they can offer, and if it helps improve my credit then that's a good bonus. I typically will pay off my balance in full each month, or if not then, I will before my promotional introductory zero percent APR period runs out. I did this with my first card, and right as my introductory period on it was running out, I paid it off, cancelled the card and moved the line of credit to a new card.

My question for you guys is, what is to stop me from doing this indefinitely? Getting a new card, collecting all the signing benefits and introductory APR offers that it has and then just moving onto the next card to do it all over again once it runs out. Given the fact that I do all the standard responsible things (don't live beyond my means, never carry a balance over, don't use price gouging balance transfers, etc) Is there anything wrong with this tactic?

 

[CAPTAIN HOOK]

Is there anything wrong with this tactic?

The simple answer is NO, there is nothing wrong with doing this.

On a slightly more technical side, your 'credit score rating' will be negatively affected by you constantly applying for credit cards on an annual basis. If you stick with the same card company your score will increase as you will be able to show a positive history of repayments etc

 

[officialtom]

I've been using an aeroplan (flight and rewards points) visa for the last few years and loved it until this year. Now the flight black out dates are showing up too often so I just switched to a cash back Mastercard (4% back for 3 months, then 2% on gas, restaurants, and hotels and 1% on everything else). Giving it a shot. I figure that since I pay for pretty much everything with it, it'll work out the same or better than what I was saving on flights with the aeroplan visa.

I don't see any harm in trying different cards as long as you keep up with payments and don't switch too often. Applying for new cards every once in a while has a very minimal impact on your credit score.

 

[flynnibus]

Holding a card for a short period and canceling will hurt your credit. You should just leave the account open and not use it.

Too many credit checks will also impact you but if this every year or so shouldn't be too bad.

People open new lines of credit to get benefits all the time. Same as cash deals, etc

Eventually the amount of outstanding credit out there will hinder how big of limits people will give you... But that depends a lot on your income

 

[mkt]

Nothing wrong with this - some issuers are more averse to inquiries/new accounts (CHASE!), but others are happy to take your business.

But... as a card churner, I opt for cards that give me some sort of benefit. My primaries are my Barclays Jetblue card and my Citi Double Cash Card. I have other cards for specific things (like Syncrony's Marvel card for 3% cash back on entertainment expenses - including theme parks; an Amex Blue Cash everyday for 3% back on groceries, and a BoA Cashback for 3% on gas. Also an Amex Plat for travel benefits like lounge access), but my regular day-to-day expenses go on the Citi or the Jetblue card.

In today's age where you can get cash back or miles for just your daily spend, using cash is subprime.

 

[21stamps]

It will negatively impact you. Stop cancelling the cards. Get a new one if you want the new rewards or special APR, but just leave the other one open and don't use it. Or- use it for very minor purchases and pay it off, or almost off every month, that way you aren't paying interest/very little anyway, but the account will show "open" with a low balance to limit on your credit- which is a good thing once you've had them for several years, and will allow you to get the higher limits as well as show responsibility.


There really isn't a need to have more than 3 major credit cards, so try to limit it to that.