Should I consolidate my credit cards into one account?
Author: milavant
Joined: 11 Nov 2003
Posts: 37
Posted: Sun Nov 21, 2004 3:52 pm
Post subject: Chase Perfectcard
I already have the Chase Freedom Mastercard from Chase. I also have an AARP Rewards Visa from Bank One. The Freedom Card pays 3% on ALL gas and 1% back on everything else. This is paid monthly, on your next statement. With AARP rewards, you get 1% back on everything, but you have to reach 2500 points (one point for every dollar charged), and then call them for a $25 check. I was thinking of converting the AARP Rewards card to the Chase Perfectcard Visa (when this is permissable) in order to still have a Visa. There is no other Visa currently offered by Chase which is better than the AARP Visa at this time. The Chase Freedom Mastercard and the Chase Perfectcard Visa doe the exact same thing, except one is a Mastercard and the other is a Visa. Is it stupid to have both, or should I wait until a Visa I like gets offered by Chase, and convert then?
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Author: stevejk
Joined: 22 Sep 2004
Posts: 8
Location: Florida
Posted: Tue Nov 30, 2004 8:14 am
There was a thread earlier wondering about the difference between MasterCard and Visa. IMHO, I don't see a difference as I have not found a merchant that accepts one but not the other, although one post said that Visa is more widely accepted outside the U.S. If those are your only two cards, IMHO, you should keep both, but make one the primary and the other the emergency backup. But make an occasional purchase on the backup card to keep it active. Whether, after Chase and Bank One merge their CC divisions, you can make a straight conversion from AARP to PerfectCard, is not known. Once upon a time, I asked First USA (a.k.a. Bank One) to convert a Waldenbooks card to the Buy.com card, but they said it could not be done; I would have to apply for the Buy.com card separately. They may say the same thing to you. If the AARP card is similar to their Cash Rewards card, the points expire after a period of time. What you can do is make the AARP your primary card so that you redeem the points before they expire, but use the Chase Freedom as your backup and gasoline card since the rebate is paid right away.
Steve
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Author: milavant
Joined: 11 Nov 2003
Posts: 37
Posted: Tue Nov 30, 2004 10:28 am
I should have mentioned that my primary card is AMEX cashback, for everything except gas, where I use Chase Freedom MC, including for other than gas, where they don't accept AMEX . What would you do with the AARP Visa , based on this fact? Thanks for your opinion. It is appreciated.
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Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 420
Posted: Tue Nov 30, 2004 10:47 am
There are advantages to having several cards, even if you don't plan to use them. The obvious advantages are the added credit, which improves credit scores and can be handy for emergencies or hardship. Here are some less obvious advantages:
1) Special offers and discounts from one card and not another. These change time to time. Rates and fees change too.
2) Flexibility. Sometimes things are coded by the credit card you use. For example, you can get a 2-month subscription to PrivacyGuard for a buck. After the subscription expires, you can sign up again--if you use a different credit card. The same credit card can't be used.
3) Loss and theft. Leave one card at home. If the main card disappears, you'll have a card to use until you get the replacement.
4) Separate payment dates. Often you can set those. Make one payable on the first and one on the fifteenth--might be helpful at times.
5) Separate accounting. Use one for deductible expenses, the other for expenses where you won't gain by breaking down what you've bought for tax purposes.
6) Avoid the "gotchas." A gotcha is a little trick the banks use. Get a low balance transfer offer and continue to use the card for purchases, and all of your payments are used to reduce the low-rate transfer. Your purchases are not considered paid and they're charged at the normal purchase rate. But if you had two cards, you could do a balance transfer on the first and continue do purchases with the second. Your payments towards the second go completely towards the purchases, so if you pay that card off each month you never get socked with this gotcha.
These are reasons for NOT combining cards. There are a few reasons to combine as well--simplicity, convenience.
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
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Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 420
Posted: Tue Nov 30, 2004 10:51 am
And, by the way, it's not an "either-or" situation. I have six current cards from Chase--5 Visas and one MasterCard. As long as there's no fee, why close any account?
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
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Joined: 11 Nov 2003
Posts: 37
Posted: Sun Nov 21, 2004 3:52 pm
Post subject: Chase Perfectcard
I already have the Chase Freedom Mastercard from Chase. I also have an AARP Rewards Visa from Bank One. The Freedom Card pays 3% on ALL gas and 1% back on everything else. This is paid monthly, on your next statement. With AARP rewards, you get 1% back on everything, but you have to reach 2500 points (one point for every dollar charged), and then call them for a $25 check. I was thinking of converting the AARP Rewards card to the Chase Perfectcard Visa (when this is permissable) in order to still have a Visa. There is no other Visa currently offered by Chase which is better than the AARP Visa at this time. The Chase Freedom Mastercard and the Chase Perfectcard Visa doe the exact same thing, except one is a Mastercard and the other is a Visa. Is it stupid to have both, or should I wait until a Visa I like gets offered by Chase, and convert then?
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Author: stevejk
Joined: 22 Sep 2004
Posts: 8
Location: Florida
Posted: Tue Nov 30, 2004 8:14 am
There was a thread earlier wondering about the difference between MasterCard and Visa. IMHO, I don't see a difference as I have not found a merchant that accepts one but not the other, although one post said that Visa is more widely accepted outside the U.S. If those are your only two cards, IMHO, you should keep both, but make one the primary and the other the emergency backup. But make an occasional purchase on the backup card to keep it active. Whether, after Chase and Bank One merge their CC divisions, you can make a straight conversion from AARP to PerfectCard, is not known. Once upon a time, I asked First USA (a.k.a. Bank One) to convert a Waldenbooks card to the Buy.com card, but they said it could not be done; I would have to apply for the Buy.com card separately. They may say the same thing to you. If the AARP card is similar to their Cash Rewards card, the points expire after a period of time. What you can do is make the AARP your primary card so that you redeem the points before they expire, but use the Chase Freedom as your backup and gasoline card since the rebate is paid right away.
Steve
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Author: milavant
Joined: 11 Nov 2003
Posts: 37
Posted: Tue Nov 30, 2004 10:28 am
I should have mentioned that my primary card is AMEX cashback, for everything except gas, where I use Chase Freedom MC, including for other than gas, where they don't accept AMEX . What would you do with the AARP Visa , based on this fact? Thanks for your opinion. It is appreciated.
View our latest credit card ratings!
Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 420
Posted: Tue Nov 30, 2004 10:47 am
There are advantages to having several cards, even if you don't plan to use them. The obvious advantages are the added credit, which improves credit scores and can be handy for emergencies or hardship. Here are some less obvious advantages:
1) Special offers and discounts from one card and not another. These change time to time. Rates and fees change too.
2) Flexibility. Sometimes things are coded by the credit card you use. For example, you can get a 2-month subscription to PrivacyGuard for a buck. After the subscription expires, you can sign up again--if you use a different credit card. The same credit card can't be used.
3) Loss and theft. Leave one card at home. If the main card disappears, you'll have a card to use until you get the replacement.
4) Separate payment dates. Often you can set those. Make one payable on the first and one on the fifteenth--might be helpful at times.
5) Separate accounting. Use one for deductible expenses, the other for expenses where you won't gain by breaking down what you've bought for tax purposes.
6) Avoid the "gotchas." A gotcha is a little trick the banks use. Get a low balance transfer offer and continue to use the card for purchases, and all of your payments are used to reduce the low-rate transfer. Your purchases are not considered paid and they're charged at the normal purchase rate. But if you had two cards, you could do a balance transfer on the first and continue do purchases with the second. Your payments towards the second go completely towards the purchases, so if you pay that card off each month you never get socked with this gotcha.
These are reasons for NOT combining cards. There are a few reasons to combine as well--simplicity, convenience.
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
View our latest credit card ratings!
Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 420
Posted: Tue Nov 30, 2004 10:51 am
And, by the way, it's not an "either-or" situation. I have six current cards from Chase--5 Visas and one MasterCard. As long as there's no fee, why close any account?
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
View our latest credit card ratings!
posted by CardRatings.com at 1:45 PM
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