|
Chase Sapphire Preferred? (pg. 3)
|
View this Thread in Original format
| EarnYourKeep |
| quote: | Originally posted by Silky Johnson
What a weird thing...the shuffling of debt and credit. Clearly I don't get it, lol. :o :o |
i still dont think i fully understand the whole thing, i don't think i ever will to be honest. i guess to boil it down, if you carry a debt on your cc, you have interest on that debt for not paying it off completely. this interest is APR and there are different APR's based on the standing of your account (variable apr based on subprime and penalty apr if you default payment).
new credit lines (new credit cards) that you apply for and are approved have these incentives baked in so you use their credit line, they are banking on you carrying debt so they can charge you APR but initially they're all offering 0% interest for the first year. the key here is to try and pay off all of your debt for new transactions on the new card.
transferring a balance from a different credit line (car loan, student loan, diff cc) is subject to different interest terms. you need to apply for the balance transfer but i'm hoping to show chase sapphire i'm reputable by spending 3-4k right off the bat (charge 3-4k and pay it off). gain some confidence with chase and then move 6k from amex to chase and pay it off gradually for the duration of the 1 year and hope they'll do the balance transfer at anything less than amex's 21%
i've got plenty of credit space i just want to reduce the interest/APR on the money I owe and try to reap the most benefits because my lifestyle has a lot of traveling involved. hope some of this makes some sort of sense, it does to me atleast lol |
|
|
| Silky Johnson |
| Yeahhhh see that's why I stick to only purchasing things with credit that I already have the cash for and don't ever really carry a balance. I am petrified of credit debt, lol. |
|
|
| EarnYourKeep |
oh definitely understood but the checks/balances between available credit and liquidable funds can leverage these 'reward' points.
like lets say i drop 8k on amex and remove 3/4 of my liquidable cash to prevent myself from paying this 21% APR, i can probably only yield like 8k additional points/rewards on my 80k total reward points. BUT a different program like chase, i could probably get 2x points for every dollar bringing me to an additional 16k in rewards which puts me close to a 20k free flight.
then again, i don't have to burn 3/4 of my cash right away by carrying the debt on chase that has a 0% interest rate for the first year. the key is get free travel without paying interest on current debt |
|
|
| Silky Johnson |
| Well isn't that like what IGK said though? What's the real point of those incentives if not to drive up consumerism? People love thinking they are getting a deal. At the end of the day, are you really getting a "free" flight? A "free" anything? I dunno, I'm perfectly content just throwing all my money down the tubes, lol. And I'm not against getting a deal, I just prefer getting one up front. ;) |
|
|
| EarnYourKeep |
i have 3 weddings, a bachelor party in costa rica and ibiza, and a trip to japan all next year...i could use a free flight somewhere and ontop of that i'm moving apartments right now at the end of the year during thanksgiving and christmas, money management and seeking out perks can really help at this point lol
-edit-
fact is im going to spend, that is without a doubt, but spending now will mean i'd have to spend less later on |
|
|
| Silky Johnson |
| Yeah, fair enough I suppose! |
|
|
| Lews |
| I seriously don't get how your AmEx APR is 21%. Have you missed payments or something? I'm at 14.5% ! |
|
|
| EarnYourKeep |
| quote: | Originally posted by Lews
I seriously don't get how your AmEx APR is 21%. Have you missed payments or something? I'm at 14.5% ! |
i think i might have defaulted earlier on during college, that is my only explanation but this does mean I need to talk to AMEX about bringing that down as I've more than met my monthly minimum and I'm carrying 8k of debt on 19k credit line which is less than half usage
i've only really used amex previously to book travel i don't use it to buy groceries or anything like that and clearly amex is not giving me the travel bonuses that I should be getting. |
|
|
| citric_acid |
what i hate about my amex is say i pay off all but $10 that month, logic says you get charged interest on $10 right? Nope! I get charged interest on my largest purchase that month even though my largest purchase was 2k and theres only $10 left unpaid. Only had to happen once
also anyone who says paying off your card every month hurts your credit is misinformed, at least it hasnt hurt mine one bit. for the last 8 years ive had only credit cards, not a single loan, I have always paid my cards off each month and my credit score is considered a perfect score. the only ding I have is length of time my accounts have been open because I am not old enough to have a 10 year account |
|
|
| billymadision |
| Misinformed? Try getting a loan. Banks don't care if you have money to reimburse them. It's all about behavior of handling loaned money. Remember, banks don't make any money if you pay them back immediately. |
|
|
| citric_acid |
| I am approved for a home loan. Didnt have any issues getting it. The bank said I had great credit and gave me no trouble |
|
|
| Lews |
| quote: | Originally posted by citric_acid
what i hate about my amex is say i pay off all but $10 that month, logic says you get charged interest on $10 right? Nope! I get charged interest on my largest purchase that month even though my largest purchase was 2k and theres only $10 left unpaid. Only had to happen once
also anyone who says paying off your card every month hurts your credit is misinformed, at least it hasnt hurt mine one bit. for the last 8 years ive had only credit cards, not a single loan, I have always paid my cards off each month and my credit score is considered a perfect score. the only ding I have is length of time my accounts have been open because I am not old enough to have a 10 year account |
You have an 850?
I don't believe I've been misinformed: I've had multiple conversations with extremely high up banking figures, and they've all said it's best for your credit to pay double the minimum every month, so long as you're under 50% of your limit. These are guys with AmEx Black Cards; I'm rather inclined to listen to them when it comes to credit building. |
|
|
|
|
