Well the truth is that redeeming for points and miles instead of cash back gives you a higher redemption rate usually.

That can lower your credit score since it's partly based on the average length of your accounts.

 

I’ve been using this for over a year as well and have been very happy. I don’t recall all the details at this time but I believe Apple and Goldman Sachs will be parting ways in the near future. Not sure what this will mean for the cash back and high yield savings account.

 

Nobody should worry about credit score unless you plan to borrow money and then 700 is more than enough.

 

so, lots of people should worry about credit scores?

 

The impact to credit is over stated unless you are churning through a new card every month. When the dust settles after a few months, you might even have a higher score. I was in the high 700s, churned through several cards and ended up in the low 800s. The sign up bonus churn management got to be too much hassle, so I stopped chasing it.

Airline rewards seem to be the best redemption value and sites like point.me or daily drop help maximize the return. I find myself using hotel points more than airline miles thanks to our employee benefits though. The 4% cash back US Bank or 3% Robinhood card are appealing since it exceeds the hotel points value. The 3-4% cash back rate also provides some arbitrage opportunities by paying property taxes and income taxes by credit card even though CC payment incurs a service fee. At the risk of perpetuating the cheap pilot stereotype, you can lower W2 withholding and make estimated IRS tax payments by CC. The IRS charges 2% CC fee and you also get the float from the CC grace period.

*Its not as bad as it sounds, honest. I already have to make estimated tax payments otherwise I'd never have found CC loophole.

​​​​​
​​​​​

 

you guys are about to get the Dave Ramey people so worked up they will probably end up in the loony bin.

 

What is the point of a good number unless you use it? Which will lower it. I don’t care because it’s not in a frame on the wall. It is a tool lender use to grade risk. Timing and 0% temporary credit (furniture etc.) deals have saved me more than a score ever has. If you’re borrowing for a purchase, shopping a rate is part of the deal. 75 points on a credit score either way won’t move the needle. It is what it is, it will change when earnings and debt and behavior changes. Worries about grade that doesn’t affect you is silly.

 

I agree completely. The point of having good credit is to use it in a way that provides benefits. If you insist at worshipping at the FICO altar, pay your balance down to zero every week and watch it juice the score by 5-25 points within a month.

When I applied for a few cards to get the sign up bonus, my score took a hit. After the dust settled my score actually increased because I was using a lower percentage of available credit. Even when paid in full monthly, a $10k balance on a $20k card looks bad because you have tapped 50% of available credit. If you have $10k but 5 cards with a $20k limit, you are only using 10% which for some reason is a better risk.

​​​​​​

 

Yes.

Especially in our income bracket.

Jeepers. Credit Score is control.

"Boy, I'd sure like to get into a whole lot of consumer debt!!"

 

I’ll add that if you plan to travel more internationally, go with VISA or MASTERCARD. AMEX is not as widely accepted as the other 2.