Investing General Discussion

Falstaff · Dec 10, 2022

I have 4 "active" cards which is probably 1 too many... Amex Blue like Sanrith, Costco because they left Amex, Prime Visa because Amazon, and a Southwest Visa I use to pay my property taxes for all the free points. I've had a Lowes card for years that I only use for huge purchases, a Capital One that hasn't been used in 15 years, and a Wells Fargo that I did a 0% interest balance transfer on like 10 years ago.

The only one not paid off in full is the Prime but its bonus season soon and even though they are slashing them, I'll use some of that to pay it off.

Sanrith Descartes · Dec 10, 2022

The trick to credit cards, like everything else in the world, is using it correctly. Ie.. not carrying a balance.

Arden · Dec 10, 2022

My buddy has like 6 cards with different cash back options and keeps them with him at all times. He pulls out a different card depending on what he's buying. Obviously, he does better than me with cash back for the month, but frankly it's not worth keeping track of all that shit to me. He has a spreadsheet where he tracks everything lol.

I have 2 cards: my Chase Amazon Visa where I put every purchase I make and pay off fully every month. I also have a Discover card. The only things on my Discover are monthly auto deductions (Pandora, Spotify, gym fee, etc). Since the Discover card only has 6 or so charges on it each month, it's super easy for me to glance at the statement and make sure I'm not getting charged for something every month that I'm no longer using, or a trial I forgot to cancel, etc.

Years ago I missed one of those "free" trials that starts charging you and ended up paying for it for like 4 months. I was so pissed, I swore that would never happen again.

Jysin · Dec 10, 2022

Sanrith Descartes said:
The funny part is its not the number of accounts but the credit used ratio. So people tend to have more cards since each card adds to the available credit thus lowering the total credit used ratio. If you pay off balance every month your ratio used is effectively zero.

The ratio is absolutely true re credit scoring. However, you still only need 1 card to handle that. I think the limit on my Chase card is $50k. I remember buying my (used) Land Rover with my card some years back simply to collect the points. After the transaction posted to the card, I just paid the balance from cash. Point being, just get a high limit on one card and it helps keep that ratio low. Then, just pay the balance every month and never carry interest on it. Your credit score will be top notch.

Captain Suave · Dec 10, 2022

Kuro said:
I assume if you're using multiple cards it's to try to push past the 800 credit score hump

I never bother. My credit score is perennially 790 because, although my record is perfect, I don't utilize "enough" credit. But then again I don't utilize credit, so who cares? It doesn't make a material difference in mortgage applications, which is about the only credit I'd ever use.

TJT · Dec 10, 2022

Sanrith Descartes said:
I am 100% on the Amex Blue Cash Rewards. No annual fee and 1.5% back on everything. Pay it off every month. Just cashed in about $900 in rewards last week. Amex also occasionally has some really nice, specific cash back offers each month.

I've been using the chase sapphire preferred for like 7 years now. Should I reconsider something else?

Rais · Dec 10, 2022

Blue Cash has a higher grocery return as example. It really is a good card. I have Sapphire myself, but to min/max things Blue is a great one to have. I'm looking for a house so I can't get one right now, but once I close I will.

Gravel · Dec 10, 2022

Captain Suave said:
I never bother. My credit score is perennially 790 because, although my record is perfect, I don't utilize "enough" credit. But then again I don't utilize credit, so who cares? It doesn't make a material difference in mortgage applications, which is about the only credit I'd ever use.

I think over 750 is all that matters.

Wife and I both were up in the 820s. I ended up getting a medical collection I never knew about it and it tanked me a ton. Was still able to get the lowest rates on our mortgage (I was able to get the collection expunged midway through and it didn't impact our rate at all).

Chase Sapphire was the shit though. We paid for a two week vacation to Kauai for the flights, lodging, and rental car, via one of those 100k things they did years ago. Still use it as our main card where we've got like $1-2k in rewards sitting on it from regular purchases.

Sanrith Descartes · Dec 10, 2022

Jysin said:
The ratio is absolutely true re credit scoring. However, you still only need 1 card to handle that. I think the limit on my Chase card is $50k. I remember buying my (used) Land Rover with my card some years back simply to collect the points. After the transaction posted to the card, I just paid the balance from cash. Point being, just get a high limit on one card and it helps keep that ratio low. Then, just pay the balance every month and never carry interest on it. Your credit score will be top notch.

Thats what I was alluding to. Early on in someone's life getting multiple cards can increase their credit max if all their xards are lower limit cards. I have cards from earlier in my life that I syont use and wont cancel since it would only lower my max credit.

Sanrith Descartes · Dec 10, 2022

Captain Suave said:
I never bother. My credit score is perennially 790 because, although my record is perfect, I don't utilize "enough" credit. But then again I don't utilize credit, so who cares? It doesn't make a material difference in mortgage applications, which is about the only credit I'd ever use.

There are actually varying credit scores (versions of FICO). Your normal FICO isnt the same FICO as a mortgage FICO. The mortgage FICO runs lower and is much harder to break above 800 on.

Sanrith Descartes · Dec 10, 2022

TJT said:
I've been using the chase sapphire preferred for like 7 years now. Should I reconsider something else?

Its really personal preference. If you are happy with the sapphire rewards then stick it. I personally like straight cash over points. i have a Fidelity card thst gives 2% cash back that you drop into any of your Fidelity accounts. Its ky backup when someone doesnt take Amex. I keep meaning to shift over to it for the extra .5% and just drop it into my brokerage account.

Sanrith Descartes · Dec 10, 2022

Rais said:
Blue Cash has a higher grocery return as example. It really is a good card. I have Sapphire myself, but to min/max things Blue is a great one to have. I'm looking for a house so I can't get one right now, but once I close I will.

View attachment 447118

Remember there are two blue Amex. One gives points and one gives a straight 1.5% cash back.

Sanrith Descartes · Dec 10, 2022

One last note on thia derail. If your credit is really good dont stop shopping for new cards and look for great new member benefits. I got my chase Ink cash back card when they offered 75000 points (750$) for new cards when you spent $5k in the first 6 months. I took the card and the free $750 bucks.

TomServo · Dec 10, 2022

Sanrith Descartes said:
There are actually varying credit scores (versions of FICO). Your normal FICO isnt the same FICO as a mortgage FICO. The mortgage FICO runs lower and is much harder to break above 800 on.

My 3 credit agency score is pegged at exactly 850. Bet my mortgage one is over 800.

Jysin · Dec 11, 2022

Step it up you 800s scrubs.

(UK credit scores are scaled differently. I am 820 in the US)

Sanrith Descartes · Dec 11, 2022

Jysin said:
Step it up you 800s scrubs.

View attachment 447214

(UK credit scores are scaled differently. I am 820 in the US)

I need to tank mine so I can hit 666.

Sludig · Dec 11, 2022

So I have close to 200k still liquid in brokerage and savings. Any opinion on continuing long term just S&P500/other funds mentioned before. Or if I can get the money out without any loss, I'm kinda debating if it might be worth trying to snag more acres w/ a house on it around here. Neighbor with 5 and a smallish house is a scosh under 200. Shit house, but I'm just thinking if I can put 200 out of 250/300k on a property and dodge most of the current loan interest rates if that wouldn't be better with hopefully rental income to cover taxes / costs. (I dont think I'd be really renting at a profit unlike owning some duplexes)

Sanrith Descartes · Dec 11, 2022

Sludig said:
So I have close to 200k still liquid in brokerage and savings. Any opinion on continuing long term just S&P500/other funds mentioned before. Or if I can get the money out without any loss, I'm kinda debating if it might be worth trying to snag more acres w/ a house on it around here. Neighbor with 5 and a smallish house is a scosh under 200. Shit house, but I'm just thinking if I can put 200 out of 250/300k on a property and dodge most of the current loan interest rates if that wouldn't be better with hopefully rental income to cover taxes / costs. (I dont think I'd be really renting at a profit unlike owning some duplexes)

Gravel · Dec 11, 2022

Sludig said:
So I have close to 200k still liquid in brokerage and savings. Any opinion on continuing long term just S&P500/other funds mentioned before. Or if I can get the money out without any loss, I'm kinda debating if it might be worth trying to snag more acres w/ a house on it around here. Neighbor with 5 and a smallish house is a scosh under 200. Shit house, but I'm just thinking if I can put 200 out of 250/300k on a property and dodge most of the current loan interest rates if that wouldn't be better with hopefully rental income to cover taxes / costs. (I dont think I'd be really renting at a profit unlike owning some duplexes)

Too hard to answer without knowing your personal risk tolerance, your time horizon for needing the money, and general feelings about the future.

If you're high risk tolerance, believe the US as a country will continue into the future, and don't need the money for a decade or longer, equities are hard to beat.

Real estate might be right at a peak right now. The Fed is still raising rates, but a lot of people think we're a few smaller hikes from hitting neutral FFR. And it sounds like interest rates on houses are at the peak or just starting to fall. If it were me I wouldn't be looking at buying real estate, but if you think shit is about to hit the fan, it might not be the worst idea.

Mist · Dec 11, 2022

Arden said:
My buddy has like 6 cards with different cash back options and keeps them with him at all times. He pulls out a different card depending on what he's buying. Obviously, he does better than me with cash back for the month, but frankly it's not worth keeping track of all that shit to me. He has a spreadsheet where he tracks everything lol.

I have 2 cards: my Chase Amazon Visa where I put every purchase I make and pay off fully every month. I also have a Discover card. The only things on my Discover are monthly auto deductions (Pandora, Spotify, gym fee, etc). Since the Discover card only has 6 or so charges on it each month, it's super easy for me to glance at the statement and make sure I'm not getting charged for something every month that I'm no longer using, or a trial I forgot to cancel, etc.

Years ago I missed one of those "free" trials that starts charging you and ended up paying for it for like 4 months. I was so pissed, I swore that would never happen again.

I have binders full of credit cards and I'm constantly minmaxing all the bonuses.

Speaking of which, I'm really considering moving to Delaware, it's like getting 7% cashback on everything!

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