6 rules for chasing credit card sign-up bonuses (SUBs)

1062. Are massive credit card sign-up bonuses (SUBs) really worth chasing? Or do they actually hurt your credit? Host Laura Adams explains the real impact of opening credit cards for sign-up bonuses, closing accounts shortly after, and managing multiple cards. You’ll learn six strategies to maximize card rewards, control your credit utilization, and protect your credit scores.

Key Takeaways

Only chase a high-value sign-up bonus if you can reach the spending threshold with routine, planned purchases. Buying unnecessary items or carrying a balance with high interest charges wipes out the rewards.Applying for a card results in a temporary hard inquiry check, but adding a new credit line increases your total available credit, which lowers your overall credit utilization ratio and boosts your scores over time.Canceling a card shortly after earning and spending a bonus can cause your credit utilization ratio to spike.If you want to cancel a card with a high annual fee, consider downgrading to a less expensive one in the same card family to keep your credit limit intact.Inactive cards can be closed by issuers, or they can cut your credit limit. You can keep cards active with a small recurring charge or an occasional charge to preserve your credit.Episode 1040: Keep your cards active

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Email: Laura@LauraDAdams.com or leave a voicemail: (302) 364-0308.

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