Help from those running the CC/Points game and closing accounts (reducing debt)

[LilSweetPeaPhoto]

Hey all-

First off, thanks to this board I got into the points game. I think I'm doing okay. I might not be redeeming for some of the higher value options, but I've taken my kids on a few vacas now with points. And now as a single mom, it's likely the only way we WILL travel, LOL.

I'm rocking $8500 in debt I inherited from my divorce (we split the CC debt 50/50). He was NEVER good about paying off in full so we slowly racked it up over 22 years. Since I've been in charge of my own finances, EVERY SINGLE CARD, EVERY SINGLE MONTH is paid in full (minus the 0% one with this debt). I want to make that clear before I get a lecture on how I'm not a candidate to run the points game. I put all my monthly spending on cards and I pay them in full.

I'm well outside the CHASE 5/24 and will be for quite some time. I want the dang INK card but I think that won't be happening anytime soon. My 0% card is set to end in Jan. I have my eyes on the next 0% card out there I want.

My question is for those running this point game, do you know, if I close the current 0% card, would I be eligible for that offer again in say 2 years? It was a 0% APR and $0 transfer fee! So it was a good one. My credit score is good, like 780. But my age of credit is young since I basically have a lot of new cards in my name (mostly because of the divorce). I'm thinking I want to start closing out some of the cards I've got bonuses on too. I know with Amex you only get the bonus once. But I'm thinking of getting the biz version of some of the cards and closing out the personal one.

I know most churners close accounts out once they get the bonus as to possibly get it again later. I'm guessing it won't hurt me or my credit score too much, right? If I keep the lines of credit amount I have open to me, at, near or above what it is now, I should be okay too, right?

So I guess my question is, can you "re-earn" APR offers?
If I close out "newer accounts" but keep my available funds, my FICO shouldn't change too much right?
Is closing the personal cards for business ones a good idea?

To give you an idea of my portfolio I have:

Chase Sapphire Reserve - my go to unless I'm meeting a spend bonus
Chase IHG MC (newer one)
Hilton Amex Ascend (personal, looking to close and get biz)
SPG Amex Biz (had the personal as a joint card, closed with the divorce)
Delta Gold Amex (personal)
AA Aviator Red (barclay, personal...denied the biz w/ too young credit)
AA CitiBusiness MC
Also the Spirit MC, but after I use those miles, I'm closing it.

I'm thinking after I get the 0% new card, of doing the Hilton Ascend Biz, and if Amex runs a good promo on the Delta business one of those. Again, I'd love the Ink card, but I won't be under 5/24 for like 12 months or more, so I'm not worrying about that one sadly.

Sorry so long, LOL.

 

[trenty]

My question is for those running this point game, do you know, if I close the current 0% card, would I be eligible for that offer again in say 2 years?

It depends on the terms of the card.

 

[miztressuz]

If you are eligible for the bonus again will depend on what the terms at the time you want the card. So there's no way to know for sure right now. Check out what the current terms are and you can use that as a roadmap. Think about what happened with the Chase Sapphire cards, they had been 24 months between bonuses and then Chase changed the terms to 48. Unfortunately nothing is set in stone so all you can do is use what's out there currently as a guide and be flexible along the way.

AmEx has a BT offer on the Everyday card still, if you transfer the balance within 60 days no fee and 0% for 15 months. It has a sign up bonus and earns rewards points, so when you're done with the debt your all set to continue the game. It also has a 0% APR for that time too so if you are meticulous you could use it while paying down the debt to earn rewards points at the same time.

Most long term churners close the account after 1 year, as many of the terms of the bonus state the account needs to be open that long as a condition of the bonus; if you close it early they are in their rights to take it back. AmEx is known to do so, others YMMV on what's enforced. What can hurt the score is the utilization calculation changes by closing out an account without being able to shift that credit to another card. If you reduce your available credit your utilization will go up and can drop your score. Not much you can do about age of accounts, haven't figured out how to manipulate time yet. Closed accounts stay on your report for up to 10 years so they can still help with longevity.

 

[seashoreCM]

I do not think there is any urge to close out a card that is not being used for awhile, correct me if I am wrong.

I would first close cards that have annual fees.

I would close airline miles cards before closing cards that give points good for shopping in more different stores.

I would close cards whose points can only be used for things in their catalog as opposed to cards that give points good for credits towards the credit card bill.

You need to do math homework to help decide what cards to close first. It also depends on how much you have to charge on the card to get how many points and also how many points are needed to redeem for an item sold on Amazon or in an ordinary store for a given dollar price.

While some airlines let miles be used to buy gift cards to unrelated stores (such as Macy's or Home Depot) the exchange rate i quite bad, like three hundred miles towards one dollar's worth gift card value.

 

[barkley]

While some airlines let miles be used to buy gift cards to unrelated stores (such as Macy's or Home Depot) the exchange rate i quite bad, like three hundred miles towards one dollar's worth gift card value.

that's a terrible exchange rate. i'm not familiar with airline cards (never any desire to have one) but i didn't realize they 'paid' this terribly. i've got 2 cards that both pay triple points on anything travel related and both allow me to use the point's dollar value as statement credits so i will use one for the normal day to day stuff, build up points and then when i'm ready to travel i also use them to book everything (great travel protection and no monetary exchange rate fees when traveling outside the u.s.). when i get home i've earned triple points on the travel which with my point balance i then turn around and use as statement credit towards paying off the travel. with the other (insurance company card that pays triple points if i pay my premiums on it) i let the points build up and when we get back from vacation i use it to pay for incidentals so that part of my monthly budget money is diverted to paying off any remaining vacation balance.

 

[duffybear32830]

It depends, isn’t that always the answer! I close it if the annual fee doesn’t net me enough perks.

 

[LilSweetPeaPhoto]

I do not think there is any urge to close out a card that is not being used for awhile, correct me if I am wrong.

I would first close cards that have annual fees.

I would close airline miles cards before closing cards that give points good for shopping in more different stores.

I would close cards whose points can only be used for things in their catalog as opposed to cards that give points good for credits towards the credit card bill.

You need to do math homework to help decide what cards to close first. It also depends on how much you have to charge on the card to get how many points and also how many points are needed to redeem for an item sold on Amazon or in an ordinary store for a given dollar price.

While some airlines let miles be used to buy gift cards to unrelated stores (such as Macy's or Home Depot) the exchange rate i quite bad, like three hundred miles towards one dollar's worth gift card value.

I'm using my cards mostly for travel. My BF lives in NC and I'm in MI. So being able to book a flight to his tiny *** airports last minute and only pay $80 is a nice perk I've blown through 60k in AA miles, and I'm working on earning another 70k right now. The hotel points are used to vacation with my kids. They have grown to have "high" standards now, LOL.