[BayMoWe335]

Originally Posted by BMW F22

I must ask: what is the use for such high CL? I can't imagine buying anything more than $10k on a card and paying it off at month end.

This is my new go to card. I wanted more CL on this one than my other cards, but didn't want to close those. Chase is good about moving them, but there is some arbitrary $35k rule that requires another hard pull.

There are rare occasions where a high CL is nice to have and if you're spending a lot, you might as well get the points.

[John Tanglewood]

Originally Posted by Flying Ace

But I agree with your point that, those who churn these points like us, the golden rule is: NEVER EVER EVER EVER EVER Carry a balance. EVER.

AMEX is purely a charge card, meaning you owe that amount at the end of the month or you're suspended, and it goes into delinquency and/or collections and have adverse hits on your credit, even if you're $1 delinquent.

Okay, so this may be the dumbest question of the day but here goes.

The card has an APR. Are you saying if I make a purchase (say for $600), then the next morning I log into my chase account and pay that $600 directly from my checking account with some bank, I won't be charged the APR?

The APR is only charged at the end of the month if you're holding a balance? Is that correct?

If so I've been unaware of this for way too long. And yes I realize my AMEX is a charge card, but I guess I am not well-versed in how to avoid APRs. I am fine with paying for things as I go, I don't carry balances on any of my credit cards.

[BayMoWe335]

Originally Posted by John Tanglewood

Okay, so this may be the dumbest question of the day but here goes.

The card has an APR. Are you saying if I make a purchase (say for $600), then the next morning I log into my chase account and pay that $600 directly from my checking account with some bank, I won't be charged the APR?

The APR is only charged at the end of the month if you're holding a balance? Is that correct?

If so I've been unaware of this for way too long. And yes I realize my AMEX is a charge card, but I guess I am not well-versed in how to avoid APRs. I am fine with paying for things as I go, I don't carry balances on any of my credit cards.

A credit card has a billing cycle. After the billing cycle, you generally have 30 days to pay balance in full. If you don't pay in full, the balance is subject to the insane interest (usually around 20%).

If you ever get a credit card and can't pay balance in full, you are screwed, particularly if you don't have money to knock it out. Once they get you, it's hard to get out.

[John Tanglewood]

Originally Posted by BayMoWe335

A credit card has a billing cycle. After the billing cycle, you generally have 30 days to pay balance in full. If you don't pay in full, the balance is subject to the insane interest (usually around 20%).

If you ever get a credit card and can't pay balance in full, you are screwed, particularly if you don't have money to knock it out. Once they get you, it's hard to get out.

Yup thank you - I just did some very quick research and can't believe I didn't figure that out sooner. If you pay off your balance in full every month you don't incur an APR fee. Wow. Going to check this card out!

[Flying Ace]

Originally Posted by John Tanglewood

Yup thank you - I just did some very quick research and can't believe I didn't figure that out sooner. If you pay off your balance in full every month you don't incur an APR fee. Wow. Going to check this card out!

haha, you clearly have very simplified and good control on your own finances. It appears you only spend what you have, and the purposes of credit cards to you is simply a convenience tool.

Good for you, that's how it should be. Sadly this isn't the case for many Americans. Otherwise, you wouldn't get so many credit card offers in the mail.

The general credit card business runs this way:

- The industry is split between transaction processors and credit:

- Visa and MasterCard are pure transaction processors. Every time you swipe your card, the merchant pays around 1% to 3% of the transaction amount, or a fixed fee, and most of that money goes to Visa and MasterCard. So they're incentivized to get you to swipe your card for almost every possible transaction. They partner with financial institutions to issue cards:

-Chase, Wells Fargo, Capital One, etc etc etc, are financial institutions (doesn't even have to be a bank), are on the credit side. They take credit risk with each card holder. If the card holder defaults on a $25,000 credit card bill, these financial institutions eat it. However, there's a sweet spot in the business where they want you to carry a credit balance b/c they can charge 13%+ on outstanding balances. That's why you're getting these bonus offers to run your bill up $3000 in 2 months to get your points or to do a credit balance transfers from another card. Not everyone can pay off a $3000 bill in 2 months, sadly.

- Discover and AMEX are the largest ones that are both transaction processors and credit. They get a cut out of both swipes and interest balance carried on their cards. Sometimes, you'll see them offer better consumer cards b/c they see more on consumer spending habits. They also will take more risks and extend ridiculous credit limits to more consumers, hence the Platinum type cards.

[John Tanglewood]

Man thanks a bunch for the breakdown. Honestly I'm embarrassed not to have known more of this already, but I appreciate the information.

And yes I LOATHE debt of any kind! I see APR's and I run the other way, but I didn't realize that's only when you carry a balance. Amazingly simple. Thanks!

[Z K]

Originally Posted by Supra2k6

i get this you can make your points go a long way here if you are a frequent flyer.

but wouldn't this work for the person traveling once twice a year?

$300 reinbursted every year for travel. so essentially making the Yearly fee $150. BTW i'm no expert.

Yeah, if I go international, even in one yearly trip, it would pay for itself... assuming I use it for normal transactions as well throughout the year. Otherwise the reward points won't overcome the discounted $150 (450-300) yearly fee.

[Flying Ace]

Originally Posted by Z K

Yeah, if I go international, even in one yearly trip, it would pay for itself... assuming I use it for normal transactions as well throughout the year. Otherwise the reward points won't overcome the discounted $150 (450-300) yearly fee.

most people don't keep these cards after the first year. So the math is actually $450-$300-$300-$100. They hit the bonus, extract all the benefits and then cancel after year 1

In this case, you come out ahead with this card. You're getting 100,000 points (minimum value of $1000) and then you get $1600 of direct benefits on top of it by paying $450 up front. You pay to play.

The golden rule of any of these cards is, only get it when you see a need to use the points, never collect and horde, b/c over time, things can happen that can erode your points, such as devaluations, etc.

[Flying Ace]

Originally Posted by David70

I am a Mariott Rewards member and have thought about getting this card.

Couple of things - $85 a year, 80,000 points, one free night is after the first year so 1st year the points, 2nd year free night. Only way you are staying anywhere close to 6 nights is not at a Mariott but maybe one their cheapest brands if you book way in advance and stay rural.

If you have a Marriott Rewards balance, it's probably a good idea to have the card. Mostly so you can keep the points alive. I got my card in 2014. So on my card, I got the bonus points and the 1 free night in the first year. I know for sure, b/c I redeemed that free night in a Bellevue, Washington Courtyard. This year is my year 2, and I redeemed it last month in La Jolla, CA.

Also, you can easily get Courtyards and Residence Inns for 15,000 points. Rural? Sure, maybe at the airport or in business parks, but our hotel needs (location, quality, etc) are clearly not the same. I was using it for road tripping in Washington state, not sure why I need to stay at a Marriott full service location when I just need it for 7 hours to sleep. Recently, I used it to redeem in La Jolla near the mall/business park. Did I need to be on the beach or golf course? No, I was heading out of town 6 hours after check in that night.

Nevertheless, you CAN get 6 nights if you're frugal and not picky on 75,000-80,000 points. Redemption value of about $900 worth of stays ($150 per stay). Oh btw, most Courtyards have been renovated. In the last two years, I've stayed in at least 5 Courtyards, and only 1 was not renovated.

[BayMoWe335]

Originally Posted by Z K

Yeah, if I go international, even in one yearly trip, it would pay for itself... assuming I use it for normal transactions as well throughout the year. Otherwise the reward points won't overcome the discounted $150 (450-300) yearly fee.

If you fly 1 time in America, take a cab, or stay at a hotel, that would all count toward $300.

I would think most people have $300 in travel expenses per year. You don't at all have to travel internationally. If you're worried you're not going to use it, you can stay in a nice hotel in your city and get a $300 credit or fly to Vegas for an afternoon.

[Flying Ace]

Originally Posted by BayMoWe335

If you fly 1 time in America, take a cab, or stay at a hotel, that would all count toward $300.

I would think most people have $300 in travel expenses per year. You don't at all have to travel internationally. If you're worried you're not going to use it, you can stay in a nice hotel in your city and get a $300 credit or fly to Vegas for an afternoon.

on AMEX plat, the travel credit was good for United Airlines App purchases of amazon gift cards. What a racket!

[fecurtis]

Originally Posted by BMW F22

I must ask: what is the use for such high CL? I can't imagine buying anything more than $10k on a card and paying it off at month end.

Improves your credit score since it'll lower your credit usage ratio, all other factors equal.

[David70]

Originally Posted by Flying Ace

If you have a Marriott Rewards balance, it's probably a good idea to have the card.

I think they may have just introduced a new Marriott Rewards credit card, the name appeared to have changed. So on my card, I got the bonus points and the 1 free night in the first year. I got this card in 2014.

Also, you can easily get Courtyards for 15,000 points. Rural? Sure, maybe at the airport or in business parks, but our hotel needs (location, quality, etc) are clearly not the same.

If I got the credit card for every hotel club membership I was part of I would be carrying around a stack and I mostly stay at Hilton brands (Hampton to Hilton). Again, depends on how much work you want to put into getting a benefit, I'm in sales, the system is the same.

I see the "staying at a Mariott for 6 nights on 75k points misleading" reality is one of their properties, probably not where you really want to be and hopefully for 5 nights. I have 30k points and wanted to stay near downtown Indy, 30k will get me one night or I can stay out by the airport at a Courtyard, nothing wrong with it, just need to understand the benefit to points and they are often not what they seem on the surface.

[David70]

Originally Posted by BMW F22

I must ask: what is the use for such high CL? I can't imagine buying anything more than $10k on a card and paying it off at month end.

In my case no point. One credit card keeps going up automatically and it is ok but I don't care. The other says I should call them to get it raised but I don't care enough to bother.

My credit score is good, I only owe on my house and got the best rate possible on it.

I think part of it is to make you feel good with their hope that you will use it.

[Flying Ace]

Originally Posted by BMW F22

I must ask: what is the use for such high CL? I can't imagine buying anything more than $10k on a card and paying it off at month end.

it's not about usage at all. It's about credit utilization. Basically, you want your utilization to be low, i.e., you want a high credit limit headroom, but use less of the credit on a percentage basis.

So if you want to improve your FICO, one way is to work towards a high credit limit, but actually not use the credit, i.e. pay off your balances monthly, so that the snapshot they take shows minimum current balances across all revolving credit lines.

[Flying Ace]

Originally Posted by David70

If I got the credit card for every hotel club membership I was part of I would be carrying around a stack and I mostly stay at Hilton brands (Hampton to Hilton). Again, depends on how much work you want to put into getting a benefit, I'm in sales, the system is the same.

I see the "staying at a Mariott for 6 nights on 75k points misleading" reality is one of their properties, probably not where you really want to be and hopefully for 5 nights. I have 30k points and wanted to stay near downtown Indy, 30k will get me one night or I can stay out by the airport at a Courtyard, nothing wrong with it, just need to understand the benefit to points and they are often not what they seem on the surface.

agreed, also the points are dynamically changing based on demand pricing. So you do have to book early and you're staying at non-ideal locations. I can see where Courtyard also costing 30k of points in Indy on certain dates.

Here's a crazy one for you, I have about 50k left over, and I can stay at a full service Marriott in Honolulu for 2-nights...25k each night. Indy business hotel vs Honolulu full service hotel. Go figure.

[Supra2k6]

Originally Posted by BimmerRookie

^ If you eat out a ton and take big, once-a-year trips it would still be worth it.

FWIW, yesterday I went to my bank and was instantly approved for one. So I'll post up some pics when it arrives. Apparently, it comes in a leather bound box with some nice presentation.

define big trips? my airfair is usually $500 $900 once a year would it still be worth it? I wanted to replace my Chase sapphire preferred with this i got instant approval so card should be on the way.

[KingOfJericho]

I applied online for the card yesterday and was approved in about 5 seconds. The weird part is that two of my coworkers are Chase Private Client customers and they are still waiting for approval. How weird is that!? It's been a couple of days already.

I promptly canceled my Amex Platinum just before I was to be hit with another $450 annual. I still plan to use my Amex Everyday Preferred card as my main card due to the 50% points multiplier on all categories.

[Z K]

Originally Posted by BayMoWe335

If you fly 1 time in America, take a cab, or stay at a hotel, that would all count toward $300.

I would think most people have $300 in travel expenses per year. You don't at all have to travel internationally. If you're worried you're not going to use it, you can stay in a nice hotel in your city and get a $300 credit or fly to Vegas for an afternoon.

I was thinking more of the spend $4000 in 3 months to get the bonus. On an international trip, you can hit that. I don't normally spend that much on credit cards in 3 months.

[KingOfJericho]

Originally Posted by Z K

I was thinking more of the spend $4000 in 3 months to get the bonus. On an international trip, you can hit that. I don't normally spend that much on credit cards in 3 months.

Sheesh... I think I'll hit that halfway through month 1. I literally put every bill, online order, and every in-person transaction on my Amex. I've racked up a TON of points that we'll be able to use for a free vacation this summer. I literally just put a $9k au pair agency fee on my Amex this afternoon which netted me $135 in points. I haven't paid a penny of interest in years.

[Flying Ace]

Originally Posted by KingOfJericho

I applied online for the card yesterday and was approved in about 5 seconds. The weird part is that two of my coworkers are Chase Private Client customers and they are still waiting for approval. How weird is that!? It's been a couple of days already.

I promptly canceled my Amex Platinum just before I was to be hit with another $450 annual. I still plan to use my Amex Everyday Preferred card as my main card due to the 50% points multiplier on all categories.

they should call the Chase reconsideration line, they usually can expedite the process. Usually, they're backed up on fraud verification part of the approval process.

Last week, I applied for the Chase Hyatt card. Applied at 11pm. Next day, called the reconsideration line, asked about it, they said I was approved, but needed to check in whether it was a fraudulent application and that "they were going to call me".

[Supra2k6]

Originally Posted by Z K

I was thinking more of the spend $4000 in 3 months to get the bonus. On an international trip, you can hit that. I don't normally spend that much on credit cards in 3 months.

i think the smart responsible way would be to pay shit you already have to pay. I easy hit 3-4k a month in expenses. Car rent mortgage utilities shit even pay in advance. Why accrue more unnecessary debt IMO. Once you hit your goal and u actually get 100k points use that to travel.