Points, miles and cards

[Tyler_Rico]

@Neal.Mollen

But if you get and cancel these cards, what does that do to your credit score? I thought canceling accounts did a number on the score

Utilization and payment history are the big two for a credit score. Inquires and closed accounts will ding it a bit in the short term but not as much as you would imagine. My wife and I usally hover around 770-780, when we were churning exec cards from dec 2013 to when the bonus ended in May/June last year we never dipped to lower than the 750s. Utilization is key, 30% is good but we try to keep it less than 10%, always pay it off before the statement closes.

[Ethan_Abraham]

@M.Kaplan

@Ethan Abraham

@Dale Bowers

If you find yourself always flying a particular airline, you are best using their CC.

Wrong, wrong, wrong (usually) . It might make sense to have their cc for other reasons (free bags, lounge access, priority boarding, access to better miles inventory), but for EARNING miles, there are usually much better options. Indeed, even for redeeming miles it might make a lot more sense to use a partner (for example, if you fly AA around North America/caribbean a lot you will get a ton more value out of earning on a Chase Sapphire or Amex Plat and then transfering to British Airways).

But if you fly to/through LHR, which my wife and I do several times a year, you are better off on AA metal than BA, as BA’s LHR taxes and fees can be up to 4x AA’s…

Agreed. AA106 and I are long-time friends. In fact the only thing I use my AA points for is JFK-LHR tickets (+ connections). Any other AA flying I do on BA points.

[jordan_whitehead]

@Neal.Mollen

But if you get and cancel these cards, what does that do to your credit score? I thought canceling accounts did a number on the score

been playing the game for about 4 years now. Go through at least a dozen cards a year between the wife and I. Most recent check of FICO shows 800 for me and 830 for her. Highest it’s ever been for both of us.

[jordan_whitehead]

@Tyler Rico

@jordan whitehead

Citibank Exec card has a high annual fee.

I love the citi exec. Churn and cancel to avoid the annual fee. Citi doesn’t seem to mind, cancel within 37days of AF posting to have it refunded. Although the sign up bonus is 50K it’s an easy way to print points. There are reports of people doing this once a month and are already on card #20+.

careful as Citi is now adding this or a similar clause to their application T&C “American Airlines AAdvantage® bonus miles are not available if you have had a Citi® / AAdvantage® Platinum Select® Card opened or closed in the past 18 months.”

[ToddFrench]

@Tyler Rico

@jordan whitehead

Citibank Exec card has a high annual fee.

People actually pay the $450 fee on these?

I love the citi exec. Churn and cancel to avoid the annual fee. Citi doesn’t seem to mind, cancel within 37days of AF posting to have it refunded. Although the sign up bonus is 50K it’s an easy way to print points. There are reports of people doing this once a month and are already on card #20+.

Was even sweeter early last year when the bonus was 100K, between the wife and I we minted damn near 1 million AA miles.

How can you cancel, then re-apply and get the bonus? They’d obviously have your previous account shown, and you wouldn’t be listed as a new application anymore

[Barry_L_i_p_t_o_n]

They are whores, that’s why. Now it’s every 18 months, before they didn’t care. (18 month language also in the Executive Card).

Churning and cancelling to avoid the fee bothered my concience. But if I’m paying the fee (which was $250 net of the $200 credits they were offering), I didn’t mind getting a handful of cards at 100k miles each.

[jordan_whitehead]

@Barry L i p t o n

Churning and cancelling to avoid the fee bothered my concience. But if I’m paying the fee (which was $250 net of the $200 credits they were offering), I didn’t mind getting a handful of cards at 100k miles each.

Not sure you could get the bonus miles b4 paying the initial annual fee. Of course many cards waive the first year fee. AA executive platinum was not one of them. 100k for $450 minus the $200 statement credit was a great deal. A great deal even without the credit.

[ToddFrench]

So these bonus miles travel cards can be cancelled, and you can re-apply with the same SS#, and get them all over again?>?

[jordan_whitehead]

@Todd F r e n c h

So these bonus miles travel cards can be cancelled, and you can re-apply with the same SS#, and get them all over again?>?

yes. just gotta read the T&C as they of course vary from card to card and bank to bank.

Read last night on FlyerTalk that one guy is on his 19th Hilton Honors Reserve Credit Card. Based on Citibanks new terms, I have to assume that he won’t be able to get his 20th until 18 months after he closes his current one.

[Barry_L_i_p_t_o_n]

@jordan whitehead

@Barry L i p t o n

Churning and cancelling to avoid the fee bothered my concience. But if I’m paying the fee (which was $250 net of the $200 credits they were offering), I didn’t mind getting a handful of cards at 100k miles each.

Not sure you could get the bonus miles b4 paying the initial annual fee. Of course many cards waive the first year fee. AA executive platinum was not one of them. 100k for $450 minus the $200 statement credit was a great deal. A great deal even without the credit.

Definitely could get the AF refunded if cancelled within 37 days. For those that need to purchase Admiral’s Club access, this is a no brainer as it comes with it. (Ironically, my company will pay for the Admiral’s club, but not part of my personal credit card annual fee - oh well).

[jordan_whitehead]

@Barry L i p t o n

Definitely could get the AF refunded if cancelled within 37 days. For those that need to purchase Admiral’s Club access, this is a no brainer as it comes with it. (Ironically, my company will pay for the Admiral’s club, but not part of my personal credit card annual fee - oh well).

then of course you have to hit the spend requirement within the first billing cycle and hope the points post within the 37 days after activation. Never tried that route b4 as the points are always worth a lot more than the first year fee.

[Tyler_Rico]

@jordan whitehead

@Barry L i p t o n

Definitely could get the AF refunded if cancelled within 37 days. For those that need to purchase Admiral’s Club access, this is a no brainer as it comes with it. (Ironically, my company will pay for the Admiral’s club, but not part of my personal credit card annual fee - oh well).

then of course you have to hit the spend requirement within the first billing cycle and hope the points post within the 37 days after activation. Never tried that route b4 as the points are always worth a lot more than the first year fee.

For the exec churn the points would post with the annual fee on the first statement. As long as you met minimum spend before the first statement cut you would be golden. A quick 10K in vanilla reloads back then (Now dead) made this easy. Once the statement cuts and points posted at AA, secure message citi to close the card. 100K AA miles and $200 statement credit, I’m supprised citi let it last as long as it did which was 6+ months.

I didn’t do this with every card, we both have one open with annual fee coming due, will definitely be closing it.

[Tyler_Rico]

@Todd F r e n c h

So these bonus miles travel cards can be cancelled, and you can re-apply with the same SS#, and get them all over again?>?

At one point last year the wife and I both had two exec cards open, both applied for #3 and both were approved, bonus and all.

Citi was seriously trying to burn through those 1B+ points they pre bought from AA

[M.Kaplan]

@Tyler Rico

@jordan whitehead

Citibank Exec card has a high annual fee.

People actually pay the $450 fee on these?

I love the citi exec. Churn and cancel to avoid the annual fee. Citi doesn’t seem to mind, cancel within 37days of AF posting to have it refunded. Although the sign up bonus is 50K it’s an easy way to print points. There are reports of people doing this once a month and are already on card #20+.

Was even sweeter early last year when the bonus was 100K, between the wife and I we minted damn near 1 million AA miles.

I use the benefits, 10K elite qualifying miles, Admirals Club membership, and no forex fees, which are worth much more than $450 to me. Churning the cards isn’t worth my time or energy. YMMV

[Dan_Hammer]

@Neal.Mollen

But if you get and cancel these cards, what does that do to your credit score? I thought canceling accounts did a number on the score

It does if you’re 26 years old and have only had a couple of credit cards. For an older gentlemen like you (or me), and as Jordan mentioned below, it doesn’t matter. Only one FYI, if you’re planning on buying a house or car in the near future, lay low on opening lots of cards.

[Mark_Y]

@Tyler Rico

@Todd F r e n c h

So these bonus miles travel cards can be cancelled, and you can re-apply with the same SS#, and get them all over again?>?

At one point last year the wife and I both had two exec cards open, both applied for #3 and both were approved, bonus and all.

Citi was seriously trying to burn through those 1B+ points they pre bought from AA

pretty mind blowing Todd, once you get into the depth of the card/miles game…

[Neal.Mollen]

@Dan Hammer

@Neal.Mollen

But if you get and cancel these cards, what does that do to your credit score? I thought canceling accounts did a number on the score

It does if you’re 26 years old and have only had a couple of credit cards. For an older gentlemen like you (or me), and as Jordan mentioned below, it doesn’t matter. Only one FYI, if you’re planning on buying a house or car in the near future, lay low on opening lots of cards.

Not an issue; I have one Amex and one Visa. No balance on either

[Dan_Hammer]

@Neal.Mollen

Not an issue; I have one Amex and one Visa.

Just two?

[Neal.Mollen]

@Dan Hammer

@Neal.Mollen

Not an issue; I have one Amex and one Visa.

Just two?

And hardly ever use card #2

[JPWilley]

@Dan Hammer

@Neal.Mollen

Not an issue; I have one Amex and one Visa.

Just two?

Same here.