credit cards: worth the bonus offers?

contrary1 · #1 (**permalink**) 06-09-2006, 12:39 PM

I have been receiving a couple of offers a week now, and the latest this morning caused me to stop & think............rather than direct the entire thing to the trash.

I joined the Barnes & Noble members club, to get a better deal on a recent purchase, using mypoints, etc.......... So, today the Members Club is willing to give me a $25.00 G/C for Barns & Noble if I sign up for their cc.

What's the verdict? How many cards make it look odd on my credit report? I am more than able to sign up for the cards & never use them, so charging on the accounts isn't an issue.

I would like the free G/C however, but not in trade for a lower score overall. I realize one card isn't going to do much, but as I said..........there are some attractive offers I'm noticing here.......at least one a week across my desk.

Opinions?? Discussion?? Experiences??

slimcustomer · #2 (**permalink**) 06-09-2006, 12:53 PM

I think applying for credit cards to take advantage of account opening bonuses can be a good source of free gift cards, cash, and travel as long as you are credit savy and don't abuse your cards. My wife and I got the equivalent of 6 nights worth of hotel nights stays just by applying for two cards earlier this year. Its like getting a vacation for free.

Albies5 · #3 (**permalink**) 06-09-2006, 01:41 PM

I too always want to take advantage of credit card offers. I never plan on using them though. Does anyone know what the deal is for credit ratings and stuff if you open alot of credit cards and either cancel them a few weeks/months later after you got what you wanted and never using them?

Albies5 · #4 (**permalink**) 06-09-2006, 01:41 PM

Also im new to this site, and like it alot- can someon tell me what the deal is with these points i see- how do you get them,what do they do, and what are they for? thanks again!!

Ima saver · #5 (**permalink**) 06-09-2006, 03:09 PM

My husband got an offer from american express last year about getting 1% back on purchases. He used it and got over $300 last year and so far he is getting back over $500 this year. I just signed up for a new master card that will give me back 1%, but I don't have to wait a whole year to get the money. I will be able to get a check everytime I rack up $100 in money back.
I don't think I would open and close accounts, that might look bad on your credit score.

veronak · #6 (**permalink**) 06-09-2006, 03:50 PM

I say if you really don't need then don't bother

Bookie · #7 (**permalink**) 06-09-2006, 10:19 PM

A possible reason to pass on the bonus offers is that many applications for credit will negatively impact your credit rating. That can have implications in different areas of your financial life. Just a thought.

msnln · #8 (**permalink**) 06-10-2006, 12:37 AM

I think the best thing is to stick with one or two cards with bonus that works best for you and not to bother signing up for too many cards. What I have seen is basically $20 worth of bonus for signing up for a new card and 1% back in spending in form of cash or other rewards.
The best card and only card I use is American Express Business CashRewards card which has tiered cash back bonus program. Cash back starts at 0.5% but if I spend over $7500 a year, I get back 2%. I have linked upromise to this card so when I go to upromise affiliated merchants or buy products, I get extra cash back from upromise.

#9 (**permalink**) 06-10-2006, 07:11 AM

to each their own (although you will see opinions posted in your thread that do not necessarily espouse that)

for me personally, no, it's not worth it. I am way too concerned about my susceptibility to overspending while using the card anyway compounded by the justification that "well, I AM getting a reward!"

also, quite frankly, I just don't spend enough each year to make good use of the rewards.

I have considered it, even started a thread once for advice on which might be the best but in the end, it just wasn't worth the headache vs. the small amount I would get back anyway.

that said, maybe if I made more and spent more, it would be worth looking into but for now, I like my life simple and no debt with one regular old card fits that bill nicely.

#10 (**permalink**) 06-10-2006, 08:08 AM

and a note about the credit score effect

something I learned as I "cleaned up and closed out" last year.

one of the factors they use that I hadn't heard much of is "average age."

near the end I had three cards with a total $17,000 credit line, the oldest was 6 years, the middle about 3 and the youngest just at a year.

that gave me about 3.3 years active credit age (this was mentioned on my FICO report)

I closed out the youngest and the middle and on the next report, the score had gone up and the average age was of course now 6.

I still have just the one, its age is now 7, I don't use it much so my ratio is always just 1 or 2 percent and my score has increased further to where it is now (knocking on 820 but I just can't quite seem to get through!)

oddly enough, my most recent FICO report (based on Experian) mentioned nothing about the average age of my active credit, so go figure.

ymmv

Ima saver · #11 (**permalink**) 06-10-2006, 10:59 AM

I noticed something about average age too. Since I have applied for and receive new cards to get the 1% cash back, I suppose that will hurt me. By my score is almost 820, so it can't hurt too much.

jmjj215 · #12 (**permalink**) 06-10-2006, 12:19 PM

Quote:

Originally Posted by Albies5

Also im new to this site, and like it alot- can someon tell me what the deal is with these points i see- how do you get them,what do they do, and what are they for? thanks again!!

You get points by posting and by others donating their points to you.

Albies5 · #13 (**permalink**) 06-12-2006, 07:41 AM

Thanks-JMJJ- but what do you do with the points? Are they for anything?

jmjj215 · #14 (**permalink**) 06-12-2006, 09:09 AM

You can purchase upgrades to your name... Just click on the "Store" link at the top of every forum page and browse around

slimcustomer · #15 (**permalink**) 06-12-2006, 09:52 AM

I think anyone who is considering flying should take a look at this account opening bonus - 25,000 AAdvantage Card Bonus Mile offer

Ima saver · #16 (**permalink**) 06-12-2006, 01:30 PM

I think making an extra $500 a year is worth having these "pay back" credit cards.

RJB1180 · #17 (**permalink**) 06-13-2006, 05:34 AM

Ima,

look at other cards especially thosse with 5% back on groceries, drugstore and gas, it can make a big difference.

Also, Im sure you go to HD and lowes alot so look at the Chase Home Improvement (3%@hd, etc.)and the Home AdvantageSM American Express® Card from MBNA (5%@hd but higher limit to get 1to1 cash reward

poundwise · #18 (**permalink**) 06-13-2006, 07:08 AM

Quote:

Originally Posted by slimcustomer

I think anyone who is considering flying should take a look at this account opening bonus - 25,000 AAdvantage Card Bonus Mile offer

Annual Membership Fee: $85.00

This sort of thing is certainly something to look out for with 'cash back' or bonus rewards cards.

b4freedom · #19 (**permalink**) 06-13-2006, 07:37 AM

Quote:

Originally Posted by RJB1180

Also, Im sure you go to HD and lowes alot so look at the Chase Home Improvement (3%@hd, etc.)and the Home AdvantageSM American Express® Card from MBNA (5%@hd but higher limit to get 1to1 cash reward

I wish I new about the Chase Home Improvement card a year ago when I redid my kitchen. I would have received about $180 back.

slimcustomer · #20 (**permalink**) 06-13-2006, 09:28 AM

Quote:

Originally Posted by poundwise

Annual Membership Fee: $85.00

This sort of thing is certainly something to look out for with 'cash back' or bonus rewards cards.

25,000 AAdvantage miles are certainly worth more than $85. Sometimes this card come with an offer that waives the annual fee for the first year. Regardless of what the current offer is, however, if you have a Citigold relationship with Citibank, the annual fee is waived for this card.