The cabela's card at this point is absolute garbage in my opinion. Rewards are poor and the sign-up bonus is beyond laughable compared to most every other option. If you're not a huge spender, make sure you look at the sign-up bonus, that's where a lot of the meat is at!
Chase Ink has 80k points if you spend 5k in the first 3 months (annual fee of 95 right away). The chase ink card is great if you own a business and the chase ultimate rewards points are even better if you transfer them to travel partners than booking through their portal. Example, flight to/from Cancun this spring I was able to transfer to Southwest and use only 18k points or 180$'s. That same flight through their portal would've costed 60k points. The travel partners are where you make a killing, same thing with transferring to Hyatt, 5-600$/night hotels can be had for 25k points or 250$s.
Chase Saphire preferred and saphire reserve are also excellent choices if you're not a business owner (although I have no idea how they'd ever check if you just opened a business card in a personal name) with great sign-up bonus's of 50k with 4k spent, the reserve has a 450$ annual fee but you get a 300$ travel credit (which most people would literally always use). the saphire preferred has 95$ annual fee waived the first year . I or any ink member who refer's a new member gets 20,000 bonus points if you sign-up and use them as a referral. Another great perk to the program, and if you decide to sign-up for ink please use someone at least so they get the points!
If you book through Chase's portal points get modified by 1.25% for preferred and ink and 1.5% for saphire reserve. However it is a much better option to transfer to a partner but their booking site works pretty slick.
CapOne venture has a 75k sign-up right now when you spend 5k in the first 3 months. CapOne's points aren't as good as Chase's, but they've begun opening options to travel partners as well which could help in future years. Extremely easy to use points however if you don't want to transfer to travel partners. You simply go on a trip and then use your points for a statement credit.
Alaska Airlines provides great value. You get a once/year companion fare good for anywhere they fly, you end up paying full price for one ticket and get the other for around 120 bucks. You can transfer the companion to friends/family. My wife and I didn't use ours this year so we let my parents use our companion fare to go to Hawaii in 3 weeks. There's a 75$/year annual fee, which I gladly pay. You also get 1 free checked bag (for everyone that books with you on your trip up to 6 passengers) and 2nd is 25$, 3rd is 75$. Last year flying home from Alaska I checked 4 50# coolers of fish and 1 75# cooler for a measly 125$'s, a fantastic value!
You don't have to get as complicated as I do, but it's silly not to open at least one new card a year to get the initial sign-up bonus. And if you're married you can really get crazy with the sign-on bonus's. I always just transfer all my rewards to a new account when I open and cancel the previous card before I ever get charged a dime for their card's annual fee. Ex. I have a chase saphire that once I get my 50k bonus for spending 4k I will transfer all of these points to my wife's card before a year is up and never pay the yearly fee. Even better you can get the initial sign-on bonus with Chase for the same card every 2 years. So I just simply cancel and re-sign up when the time comes.
If you guys aren't churning cards (especially if you like traveling) at least a little through the year you're missing out on some pretty significant travel rewards with sign-up bonus's. My wife and I gain close to 250k miles every year just in sign-up bonus's.
Feel free to reach out to me here or through PM on any of these rewards things, my wife and I have gotten pretty good at legally working the system on this front over the years to get some pretty nice trips. The credit card companies are basically betting that you won't pay off you card in full so they dish out the big bonus's. If you open up a million your credit may ding a bit, but mine is still north of 800 with 3-4 inquiries every year under my name as well as my wife's. Happy traveling!
Owning more than two means your not doing well financially and will have to work a long time.
Opening accounts has a bit of a higher effect on my score, it will occasionally dip into the 790-795ish range if I open two within a month or two of each-other, but great credit is great credit when you get to a certain point.
I don't get better rates on loans because I'm 805 compared to 795. In fact now that I look at it because I've done 2 in the last 3 months I'm now sitting at 797 (so I did lie that I'm right now at north of 800) and was at 809 last month so I did drop 12 points with two recent inquiries, but it's not like I've got a poor score with this strategy. Things that help "out-weigh" the negative is I'm 100% on-time with payments, my total credit usage usually stays below the 3-4% range, and my total credit line's are pretty significant (I use my cards for everything, but it still adds up to very little of my total credit lines).
I do keep my AK airlines card year-round as I'm legitimately too lazy to re-open it with the low annual fee and the sign-up bonus isn't worth the hassle with that card every couple years so I just pay the 75/year and take my companion fare. I also keep a BP card when I'm in that time period when I don't have a sign-up bonus I'm working towards to pay for gas to maximize what I'm getting (which isn't many times throughout the year)
I have a respectable net worth for a 29 year old with my real estate holdings and my credit score has only helped me get lower rates for my rental property loans. The positives of my credit card strategy have consistently outweighed small "dings" in my credit that I accrued through opening up future accounts. I hope that answers your question.
I'm just giving guys that are responsible with money more info, that's all, if it doesn't interest you you're free to move it along. If you don't have a budget and are dumb with money, then yes. I 100% agree with your statement. And no, I am not a Dave Ramsey fan but that is a completely different argument :)
You dont need to cancel the others, just put them in your safe and dont use them [ unless there is an annual fee ].
Thats what I do and keep my 840+ credit score
As long as you can control yourself, I think it's crazy to not take advantage of these offers.
I have several open that I don't even use that I just keep open to increase my overall credit limit that don't have an annual fee (which in turn helps my credit score). It'll be a cold day in hell before I ever close my Cabela's card, but I now spend less than 100$'s a year on it but the 15k credit limit looks great on paper. The only ones I cancel are the ones that have the annual fee (with the exception of Alaska air). The Chase points are the main card I prefer to open/close as they allow you to get the same sign-up bonus on the same card as long as you haven't opened the same one within the last 2 years. Their points are also the most valuable in my opinion if you know how to use them. With my real estate business I generally do one new card/year and transfer all points from business card to personal before I get charged the annual fee as well.
Many of the guys I grew up with earned really good money but always spent more than they earned due to easy credit and living only for the day. I always spent less than I earned and it did work out nicely.
I’m 65 and would only have one credit card if I wasn’t worried about the card getting hacked so that’s why I have two. I like to simplify things so I can put all my productive time preparing for bow hunts:)
One credit card for me, AA.
I am finally getting the Citibank double cash back card. (2% cash back on all purchases. 1 % at time of charge and 1% on payment) I like the idea of redeeming wherever I choose.
I was wondering what to do with my Cabelas CC. I have a $27.5K limit on the card, but I charged a whole $3.50 last month. (They have pissed me off) My currently plan is to shred the old card and replacement card. (I have other options if I get hacked on CitiBank) I wasn't going to close the Cabelas account though. Talk me out of that approach.
In terms of cash back vs the travel cards the cash back cards are generally a worse value than the travel rewards (that isn't to say they're a bad value), even though they likely accrue the same # of miles. For the same amount of miles, I can likely get greater value using that on an airline or hotel than just getting money back off of my account. Example would be flying to Cancun example (I just picked two random dates in February, if you're flexible on when you fly it helps), if I use my miles and transfer to southwest my wife and I can go to Cancun and back for 46k miles on pretty good dates plus 178$'s bringing the total "cost" of that flight up to 620 dollars, if I were to pay cash for that same ticket it is 850$'s, or if you were to book through the chase portal it is 76k points. So by utilizing my travel miles and transferring to partners compared to cash each mile is actually worth closer to 1.5 cents, which adds up. Another example would be to stay at a high end Hyatt in Cancun it costs 600$'s/night, or I can transfer my miles to Hyatt and book that exact same room for 25k-30k miles, so my miles end up being worth more than 2x than they would be with cash!
If you don't travel, I'd still likely open a new one or two every year to get some more cash back. But if you enjoy traveling this is a relatively easy way to maximize your points and get some significant perks for not really doing anything other than just having to keep your credit cards straight. Me personally, I keep my AA one year round, BP card for gas if needed, churn one business card/year after I get the bonus and transfer points to a personal card, and mix between CapOne, Chase, and Barclays (70k bonus right now) in my personal wallet. It sounds a lot more complicated than it is. For simplicity sake if you're married and you each open up one new card a year you'll likely get 150k points or so which is pretty damn good.
Matt, I think he travels more than you and I do. We just go up in the mtns! :)
I prefer the Chase cards as well, the points are just so incredibly versatile. I like the AlaskaAir for the companion fare but rarely actually use my rewards as they don't have as good of value as other airlines for where I personally live. If you live out west that's a different story. I have that card for the companion fare, not for the rewards.
I had another idea of selling monthly subscriptions for razor blades. What do you think about that idea?