Archive for the ‘Credit Report’ Category

Switch Over to WordPress Today

Howie is attempting to move the blog today to WordPress so service may be interrupted. We are still here, just trying to improve the look of the blog.

 The question of the day seems to be:


I applied for a Chase card in December and February and really want the 100,000 miles from the British airways card. Can I apply for this and expect success?

Here is an email I just got:

Thanks again for your help!

Scott”

This proves that the Chase six-month rule is bunk. I knew it was, as I got five cards in six months from Chase. But here is the same result from another reader. You need high scores and few inquiries and the ability to lower the limits on your existing cards with the same card issuer, or be willing to close an older account. Your Mileage May Vary, but don’t believe that six-month rule line you get on the phone sometimes.

Every inquiry costs your credit score two to five points. That’s the amount you’re risking. If you are denied for a card, it does not go on your report as a negative factor. There is no drop in your score for a credit card denial.

This offer is large enough that if you aren’t sure of the outcome, it may still be worth the try, particularly if you have another Chase credit card you can cancel to earn the approval. Don’t cancel anything before applying. Wait until you get the denial if you do and then call the reconsideration phone number.

Reader emails are really providing valuable information to you, the readers. Several days ago we heard an example of a Premier Rewards credit card producing another sign-up bonus in the short term. Last month another reader email indicated that a Platinum Card from American Express, closed at least two years, could be applied for again and the new application would produce the points. I personally verified that one with my account at two years and three days since I closed my first Platinum Card.

This British Airways card has plenty of positives as a long term card for many people. It can be a terrific compliment to those carrying the Starwood Preferred Guest American Express credit card where Amex is not accepted.

1.25 miles per dollar spent
$30,000 spend to earn a free companion pass
No foreign transaction fees

I wish I hadn’t closed mine this year. Although I am not a fan of the fuel surcharges that British Airways charges on awards using their own metal to Europe, there are plenty of other options for using the miles with OneWorld partners. I also wish the companion pass provision was good on all OneWorld partners, but that is way too much to expect.

BTW: The 100,000 frequent flier mile offer is scheduled to last until May 6th.

Chase has really stepped up as the primary issuer of great credit card offers for travelers. Look at the offers we have recently seen.

100,000 Mile British Airways Card Offer. Limited time only.

On our trip to Hawaii, our first outbound flight — MIA to ORD — went mechanical and they wanted to delay our flights by a full day, getting us into Honolulu 24 hours later, missing our connecting flight to Lihue, our hotel reservation in Honolulu, and our trip to the U.S.S. Arizona Memorial.

I waited until we got back as I had hoped to talk a United Airlines agent into allowing us to fly directly back to Savannah instead of the roundabout trip to Miami. The agents all tried hard to accommodate us, but they couldn’t sincewe were not asking for a reroute in the state of Florida.

At that point, I wrote my customer service complaint regarding the mechanical issue and Katy missing her chance to see the Arizona Memorial. True to form, United was very generous and gave us each a $350 customer service voucher for the delay.

United takes care of its customers and we remain loyal for that reason. Our tickets MIA-HNL were originally $460 all-in round-trip. Seems like they made it right by Katy and me.

Thanks United!

From a reader:

Phoenix to London $460 All In

Long time follower (of The Frugal Travel Guy blog) — thanks for what you do! I just booked a flight PHX-LHR RT via Iberia website on BA Metal for $460 round trip all-in for April 1st.

I believe Iberia is not charging fuel surcharge. Let your readers know. DO NOT CALL THE AIRLINE.

Thanks,
David B

(Consider yourselves informed, readers!)

Seems like the kids are fighting again and the hub cities are in play. Look for United flights and prices out of CVG, SLC and ATL and Delta flights our of SFO, IAD and maybe ORD.

Sub $200 roundtrips and Delta has already pulled thier fares so hurry.

It seems that some of the Skyteam members ala Continental, Northwest and Delta are now in the mix offering $$500+- til October. The following cities have been added and some with same day turnaround if you need a few miles to qualify before year end:

Pittsburgh, Atlanta, Charlotte, Philadelphia, Washington, Miami, Chicago, St Louis, Minneapolis, Memphis, Cincinnatti and Detroit are all around $500+- now in additon to the original three cities of Cleveland, Houston and Newark.

Continental is protecting its turf and Delta and Northwest have joined the fray.

Hawaii anyone?????

Everyday from August 10th through the 16th we will be talking about credit cards. Read all 7 days for a good starting point on earning miles with credit cards.

Early returns from our blog readers indicate that most of the churners, are getting there sign up bonuses and then cancelling their new credit cards. Let me give you another train of thought that will help with your miles accumulation and credit score.

By cancelling your credit card right after obtaining your sign up bonus you are not allowing your credit to age. All your credit history will show, new short term accounts without any history with that particular bank or lender. After getting your sign up bonus consider putting the card in the drawer until the renewal is due. And remember some cards don’t have a renewal fee so they will be really aging if you just leave them alone.

But if you are faced with a renewal fee and have made your payment or payments (hah, I know you used the card one time) call and ask for a retention bonus or waiver of the first annual renewal fee. At worst, they will give you another year for free if you tell them you forgot the card, or now need it as your flying plans have changed and you’ll be using their airline.

Even better, they may give you miles to keep the card for another year. My last example was with the Citi Aadvantage card that I had not used at all in the last year. I got 7500 AA miles for paying the $50 renewal fee. Would I do that again? Every day of the week, month and year.

So now, with this new strategy you will be aging your credit to improve your credit score and possibly be picking up a retention bonus to fatten your account balance.

Let me know how your next retention call goes.

If you have more questions, please don’t hesitate to email me at ingy104@gmail.com.

And if you are considering applying for additional cards, I’d appreciate you using one of the links on my website or blog. Thank you.

Your credit is one of your most important assets. Treat it with care, and do not abuse your credit.

To continue with the idea of maximizing your airline and hotel bonuses, I thought I’d give you a look at my credit card portfolio and my success rate. Remember I’m the “olde guy” and have had some time to accumulate these cards, but did not really start using credit cards for sign up bonuses until 2000. So the history is primarily in the last 8 years.

To date I have had 65 different credit cards and presently have 25 open credit card accounts according to the latest check of Truecredit monitoring service. The majority of these cards have been airline and hotel cards that I acquired for sign up bonuses. My largest credit card line is %51,500 and smallest is $1,000 after moving most of that cards line to some other card I needed more credit on.

It did obtain about 12 cards last July for the purpose earning interest income on 0% interest balance transfer cards by depositing the money drawn on those cards in interest bearing savings accounts. It was a profitable experience and I’ll do it again when saving rates rise again.

My credit profile also shows that I have never had a late payment or derogatory comment on my credit reports. I did have one derogatory comment, from a medical bill in 2006 but was able to have that removed after some additional documentation, effort and persuasion.

In August of 2007 just before I took out the 12 new credit cards, my credit scores on the day of those applications were 726, 737 and 693 at the three credit reporting agencies, TransUnion, Experian and Equifax. The lowest they dipped to were one month later in August when I had borrowed heavily against those cards and the new balances were showing on my credit file. The scores had dropped to 717, 678 and 674, where they basically remain today.

Since applying for 12 cards in July of 2007 I have had 22 additional inquiries to my credit, primarily from banks as I open new checking or savings accounts to take advantage of cash sign up bonuses. There have also been about 4 credit card approvals for sign up bonuses and promotions.

My credit scores will all rebound into the mid to upper 700′s and possibly 800′s within the next 30 days as the credit inquiries from July of 2007 age past one year and have less significance on my credit score. In addition all the cards but two are now paid off and will show $0.00 balances by September. I will have a $2400 balance remaining on a Discover personal card that I have 0% on for life as long as I make two purchases per month ( I donate $1 each to the Humane Society and American Cancer Association) which each count as purchases and preserve the 0% rate. I also am carrying a $9000 balance on a card for my son while he is in Australia at school. It more sense for me to carry his car debt as I could get a 0% rate for him with low monthly payments. When he gets back in the states, and employed he’ll refinance that into either another 0% card, auto loan or sell the car. It was just one of those Dad things we do sometimes.

In the years I have been churning cards, I have turned down twice. Once by Citicards just recently as I have about 9 open cards with them and was carrying significant balances during the App o Rama. As mentioned those balances have been paid off and I have reduced credit lines on two cards I don’t use ( I hate reducing credit lines). I expect to be churning Citicards again within 30 days when the payoffs post. I don’t remember the other card actually, but do remember being turned down once previously.

I don’t mean to say that I have only been turned down twice, I mean I have only been unable to have a rejection letter reversed twice. I probably have been initially rejected 5 or 6 times but have been able to state my case for approval in letter form or reduced existing credit lines to gain approval for the card I was looking for and the attached sign up bonus.

I’m providing this information as background for you to compare your present credit card inventory and ability to use your credit for future bonuses.

Three key things to remember:

1. I have never been late.
2 I very rarely carry a balance where I am charged interest on my credit cards. Sure I have had balances on my 0% interest cards, but I consider those profitable opportunities.
3. There are very, very few sign up bonuses that have a value greater than the interest you will pay on a credit card in a very short frame of time. If you can’t pay off your credit cards in full every month, you should not be opening new accounts.

And lastly, Your credit is one of your most important assets. Don’t mess with it if you have major purchases contemplated in the near future.

I offered yesterday, to help you look over your current card portfolio and potential for future sign up bonuses. I hope this synopsis of my past credit card success will spur you into taking advantage of the opportunities in front of you.

IF, you can control yourself and preserve one of your most important assets.

Between now and October 27th, Houston, Cleveland and Newark all seem in play for discounted fares to Honolulu in the low to mid $500′s

Delta, United, Northwest and Continental are offering these fares out of these Continental hubs??? Some appear to have a 3 day minimum. Watch for a spread to other hub cities like:

Atlanta, Salt Lake City, Cincinnati, Memphis, Detroit, Minneapolis, Chicago, Washington and San Francisco. I just have a feeling a shot has been fired across somebody’s bow.