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DansDeals Forum => Credit Cards => Topic started by: steroplasma on January 21, 2014, 09:42:23 PM

Title: Is it really worth the points/rewards
Post by: steroplasma on January 21, 2014, 09:42:23 PM
If i'm in the market for a new house anytime between now and the next 2 years is it really worth to play the  points game and then risk the mortgage costing an extra  triple or quadruple more than my reward over the next 30 years given the lowering of my fico score? i mean even if my rate is just affected by a few decimal points that could add up to way more than the price of a couple free RT tickets ?
Title: Re: Is it really worth the points/rewards
Post by: avremie on January 21, 2014, 09:52:07 PM
Your own answer in NO.
Unless you were just trying to bring this to the attention of others that may not realize the consequences.
Title: Re: Is it really worth the points/rewards
Post by: sky121 on January 21, 2014, 09:58:04 PM
Maybe he just wanted confirmation. No, not worth it IMO.
Title: Re: Is it really worth the points/rewards
Post by: Ergel on January 21, 2014, 09:58:42 PM
And what if you raise your credit score and save yourself some money in the process?
Title: Re: Is it really worth the points/rewards
Post by: sky121 on January 21, 2014, 10:02:02 PM
And what if you raise your credit score and save yourself some money in the process?

One or two pulls yes but AFAIK having many pulls on your credit report is not helpful when it comes to applying for a mortgage. Is that not correct?
Title: Re: Is it really worth the points/rewards
Post by: Ergel on January 21, 2014, 10:03:00 PM
Dunno. I had no issues but my mortgage was in Canada (although they did pull my US report
Title: Re: Is it really worth the points/rewards
Post by: steroplasma on January 21, 2014, 10:07:54 PM
Your own answer in NO.
Unless you were just trying to bring this to the attention of others that may not realize the consequences.
I just want to know is there a reasonable possibility that by playing the points  game  I will perhaps have short term gains on the expense of long term losses by my mortgage being more expensive.
Title: Re: Is it really worth the points/rewards
Post by: ilherman on January 21, 2014, 10:19:38 PM
Dan always keeps on reminding us, he haves a score of almost 800 IIRC, you just have to know how to play safe.
Title: Re: Is it really worth the points/rewards
Post by: Ergel on January 21, 2014, 10:20:58 PM
Repeat after me ein meviim raayah miDan
Title: Re: Is it really worth the points/rewards
Post by: alpicone on January 21, 2014, 10:24:37 PM
Credit score is one thing but not every bank will be okay with a letter of explanation for 10 inquiries in the last 6 months.
Title: Re: Is it really worth the points/rewards
Post by: shmooz on January 21, 2014, 10:26:25 PM
i was able to refinance without a problem. But that's my bank and others may be different. And if I couldnt refinance its not the end of the world. I agree with above posters that's its not worth the risk if you're looking for a house.
Title: Re: Is it really worth the points/rewards
Post by: steroplasma on January 21, 2014, 10:35:12 PM
Thanks guys I think i'll hold off.
Title: Re: Is it really worth the points/rewards
Post by: ilherman on January 21, 2014, 10:42:14 PM
Credit score is one thing but not every bank will be okay with a letter of explanation for 10 inquiries in the last 6 months.
True. But doing a  3BM now wouldn't bother him in 2 years from now if he is handling everything Kehalucheh.
Title: Re: Is it really worth the points/rewards
Post by: ilherman on January 21, 2014, 10:52:11 PM
Repeat after me ein meviim raayah miDan
;D True... He always finds Saver award's etc.....
Title: Re: Is it really worth the points/rewards
Post by: Baruch on January 21, 2014, 10:53:41 PM
For many ppl this game has highered their credit scores.
Title: Re: Is it really worth the points/rewards
Post by: Centro on January 21, 2014, 11:03:55 PM
Repeat after me ein meviim raayah miDan
;D
Title: Re: Is it really worth the points/rewards
Post by: avremie on January 21, 2014, 11:15:00 PM
no one here is saying not to go for 1 CC
Title: Re: Is it really worth the points/rewards
Post by: shimino1 on January 22, 2014, 12:11:40 AM
For many ppl this game has highered their credit scores.
?
Title: Re: Is it really worth the points/rewards
Post by: Freddie on January 22, 2014, 09:03:29 PM
I took out my mortgage a year before I started playing the miles game so I cannot speak from experience on that. HOWEVER... I can attest that my score has gone from a mid 700 to a high 700 / low 800 in ten months. That's with at least ten pulls and it still shot up 50 points or more.

For me, taking out lines of credit was a huge boost because it gave me a bigger credit line and thereby lowered my utilization. Every situation differs though, I guess.
Title: Re: Is it really worth the points/rewards
Post by: daganster on January 22, 2014, 09:10:49 PM
When I refinanced my home my mortgage broker kept telling me to hold off and not open new CC's. At first I listened to him, but when it kept dragging out I applied for cards like a real churner. The only issue I had is that they questioning me about the new credit lines and needed to verify that I didn't accumulate more debt other than that it wasn't a big deal.
Title: Re: Is it really worth the points/rewards
Post by: michael on January 22, 2014, 09:18:32 PM
Did not have an issue when I refinanced last year. My broker told me that the best rates required a 740 which I had. No one asked about cc's. 
Title: Re: Is it really worth the points/rewards
Post by: ushdadude on January 22, 2014, 09:18:38 PM
For many ppl this game has highered their credit scores.

I'm assuming a bank will look at more than just a number before lending someone 6 figures.
Title: Re: Is it really worth the points/rewards
Post by: daganster on January 22, 2014, 09:29:09 PM
I'm assuming a bank will look at more than just a number before lending someone 6 figures.
Yes, they are more concerned in regards to your debt than your inquiries.
Title: Re: Is it really worth the points/rewards
Post by: Baruch on January 22, 2014, 10:36:33 PM
I'm assuming a bank will look at more than just a number before lending someone 6 figures.
So they'll see a bunch of ccs with no balance - Big Deal!

The credit score goes up with more cards because the debt to credit ratio goes down.
Title: Re: Is it really worth the points/rewards
Post by: Baruch on January 22, 2014, 10:37:45 PM
Did not have an issue when I refinanced last year. My broker told me that the best rates required a 740 which I had. No one asked about cc's.
According to the Mortgage Professor, anything higher than 720 is usually just as good as 720.


ETA: actually he now says the the financial crisis has caused a need for a higher score - 760 - and even higher.

http://www.mtgprofessor.com/a%20-%20credit%20issues/does_the_mortgage_market_reward_virtue.htm

That was written about 2009, it could be that it went back down. Maybe the new number is 740?