20+ Credit Cards and 800+ Credit Score? Is It Possible?

The Secrets of My Credit Score

First Published Date: November 3, 2016

The people I know and the employees at my banks almost have a fit when I tell them I have around 20 credit cards and a very high credit score, like above 800. For most people, more credit cards are associated with more debt and a lower credit score. More debt (for some people) I can agree with, but lower credit score? I could not disagree more.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

The general misconception about having more credit cards is that they lower your credit score. This assumption could not have been possibly further dispersed from the truth. Having a lot of credit cards is OK, as long you are paying your bills on time and keeping your Utilization Ration below 30 percent. However, 30 percent ratio is considered the highest limit you can go to keep a good credit score. Lower is better. For example, FICO and Experian data show that those who have the best credit score, such as 800 or higher, utilize only 7 to 8 percent of their credit. Your utilization ratio represents what percentage of your available credit you are using and makes up 30 percent of your credit score.

Now, how about having too many credit cards? Having too many credit cards and maintaining them properly actually gives you an advantage to achieve a higher credit score. It’s shooting up your available credit limit (meaning making your utilization ratio lower) and showing positive on your credit report because lenders view you as someone who can be trusted with credit (because you are maintaining them positively by not racking up balances and keeping them active paying on time). After all, payment history makes up 35 percent of your credit score. So when you score perfect both on payment history (35%) and utilization ratio (30%), you already have an advantage towards scoring higher on the overall credit score. The other 15 percent (length of credit), 10 percent (types of credit), and 10 percent (inquiries) will easily follow.

One of the maximum credit card holders with an almost perfect score recorded by Guinness World Record was Walter Cavanagh of California, who has 1497 credit cards and a staggering $1.7 million line of credit. Other examples: The Points Guy Brian Kelly has 30 credit cards and 805 credit score. Ben Schlappig of One Mile At A Time has 20+ credit cards and 837 credit score.

The point is, there is nothing wrong with having too many credit cards as long as you know how to manage money and credit cards. However, I must warn that it requires a lot of discipline and work and this is not for everyone. You have to be extremely detail-oriented and extremely excellent in handling credit cards and money. If you are one payment late your credit score will take a nosedive.

Everyone has different purposes of achieving a higher credit score. My purpose is the satisfaction that comes from a higher score and also to utilize the various perks that come from having lots of different credit cards. I will talk about these more in my next book, Credit Card Hacks: What Credit Card Companies Don’t Want You to Know. Stay tuned.

Which Credit Cards Give the Most Rewards Points or Cash Back?

How to Get the Most Credit Cards Rewards Points

First Published Date: November 11, 2016

Today, I will talk about maximum rewards points offered by annual fee credit cards in Canada. Keep in mind that I am not looking at introductory bonus points, insurance benefits or other perks offered by these cards. The cards that offer the most rewards may not be the best credit cards when it comes to extra benefits. For example, the American Express Gold Rewards Credit Card is one of the best cards in terms of rewards, but in terms of benefits it’s one of the worst cards. Why? Read my Amex Gold Review here.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

Best Proprietary Points Credit Card – The Scotia Bank American Express Gold Card offers the most proprietary rewards points (4 points per dollar) on 4 categories (grocery, gas, entertainment, restaurants). However, it offers a poor 1 point per dollar on all other spending.

There are three other credit cards that offer a flat 2 points per dollar on all spending across the board. These cards are: BMO World Elite MasterCard, MBNA Rewards World Elite MasterCard, and Capital One Aspire Travel World Elite MasterCard.

Best Airline Loyalty Points Credit Card – Both the TD Aeroplan Visa Infinite and the CIBC Aerogold Visa Infinite offer 1.5 miles on 4 categories (grocery, gas, pharmacy, and at AirCanada.com purchases excluding vacation). However, these cards offer a poor 1 mile per dollar on all other spending.

Best Hotel Loyalty Points Credit Card – The Starwood Preferred Guest (SPG) American Express Credit Card offers 1 Starpoint per dollar across the board on all categories. Although there are other hotel credit cards that offer more points per dollar, Starpoint is the most valuable hotel currency on the market (currently 1 Starpoint valued at 2.5 cents or more), and for that reason the SPG Amex credit card provides most value for every dollar spent.

Best Cash Back Credit Card – The Scotia Momentum Visa Infinite Card offers the most cash back return (4 percent on gas + grocery and 2 percent on pharmacy + recurring bills). However, it offers a poor 1 percent on all other spending.

The BMO CashBack World Elite MasterCard offers a flat 1.75 percent return on all spending across the board. Another no fee credit card worth mentioning is Tangerine Money-Back Credit Card. It offers 2 percent cash back in 2 categories of your choice and 1 percent on everything else.

Best Hybrid Points Credit Card – The American Express Gold Rewards Credit Card offers 2 points on gas, grocery, drugstore, and travel purchases and 1 point on everything else. These points can be converted to airline (Aeroplan, Avios, etc.) or hotel points (Hilton, SPG, etc.) or can be used as statement credit. The 2 points per dollar earning opportunity makes this card the highest Aeroplan (or other airline points) earner credit card in Canada.

Bonus Credit Card Points Tip – Although The Scotia Bank American Express Gold Card and MBNA World Elite Rewards MasterCard are proprietary points travel credit cards, its ability to redeem points for cash back (MBNA) and statement credit on any purchases (Scotia) make these cash back credit cards as well.

Last Word – Don’t pick any credit cards based on only rewards points they offer. There are many other elements to it, such as what types of insurance coverage provided, who is the insurance provider, if any concierge service is available, if the card provides anniversary bonus, and so on.

A Dawn Journal has lots of articles on credit card tips and unlike many other sites, I do not receive money, participate in any affiliate program, or promote any credit cards. So my opinions are honest and unbiased. Always do your research and make informed decisions before making your credit card selections.

The Scotia Momentum Visa Infinite Credit Card: Should You Keep It?

Scotia Momentum Visa Infinite Card Review

First Published Date: September 13, 2016

Disclosure: Information provided here may not be accurate and no longer valid. The mentioned card provider is not related to A Dawn Journal and neither monitor this site nor responsible for any inaccurate information. Contact the card company directly for accurate and updated information. A Dawn Journal or my YouTube Channel are not compensated by or affiliated with any credit card companies. All credit card articles are 100% unbiased and honest.

The Scotia Momentum Visa Infinite card is a cash back rewards credit card that lets you earn cash rewards for everyday purchases, which can be credited to your account balance at the end of each 12-month period once a year in November.

The Cost

Annual Fee = $99. Additional cards = $30

Minimum annual income required = $60,000 (or household income = $100,000)

Rewards Points Snapshot

– Earn 4 percent at eligible gas stations and grocery stores Canada.

– Earn 2 percent on eligible drug store purchases and recurring bill payments.

– Earn 1 percent on everything else.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

First Time Bonus

From time to time, Scotia runs a promotional $100 bonus. Also, the annual fee is waived for the first year.

Anniversary Bonus

None.

Features & Benefits

– Visa Infinite benefits, including Concierge Services.

– Emergency Medical Insurance (15 days <65, none if 65 or older, Amount: $1 million).

– Travel Accident Insurance (Up to $500,000 CAD)

– Auto Rental Theft and Collision/Loss Damage Insurance.

– Trip Interruption Insurance ($2,000 each, maximum $10,000)

– Flight Delay Insurance (After 4 hrs, $500 per trip).

– Lost and Delayed Luggage ($500 maximum)

– Purchase Security (For 90 days, up to $60,000 lifetime)

– Extended Warranty Insurance (1 additional year)

What’s Missing

Because this is not a travel rewards credit card, I can’t mention anything here like I do for a travel credit cards review.

My Take

It’s almost impossible to beat the high cash back return the Scotia Momentum Visa Infinite card provides. These days, investors are having a hard time generating 4 percent return from investments, so a credit card that provides 4 percent rewards on groceries is a big deal. However, if your grocery spending is not that high, but spending on another category (that provides 1 percent return) is high, this card won’t make sense and you should probably look for another card.

Although this is not a travel rewards credit card, it offers many travel insurances and provides the option to add Trip Cancellation Insurance, which is a good thing. But don’t forget that travel spending will attract a low 1 percent return.

The $99 annual fee is very reasonable, although Scotiabank could have charged a $120 annual fee – which is standard for Visa Infinite cards.

The only thing I can complain about is that the cash back rewards are awarded only once a year. I have seen other cash back cards that have done a better job at this. For example, some award cash back every month or when you reach a certain amount.

Never Settle for Cash Back Rewards Credit Cards Except for This One Reason

Maximize Rewards with Travel Credit Cards

First Published Date: June 8, 2016

Those who are for cash back credit cards will often tell you that cash back cards are the best rewards credit cards because they are simple to understand and easy to deal with. And you don’t need to spend endless hours mastering hotel points and flight miles. However, what many cash back credit card users don’t realize that even though you don’t want to deal with points and miles, there is no need to shy away from travel rewards credit cards, as they provide the best returns possible among all types of rewards cards.

So how is it possible to enjoy a travel rewards credit card without going into the hassle of miles and points? The answer lies on the types of travel credit cards you are dealing with. Proprietary rewards travel credit cards offer simple rewards points that are proprietary to the credit card company that just work like a cash back credit card. You will receive proprietary points that will offset your travel costs charged by your card. For example, The ScotiaBank Gold American Express travel rewards card provides 4 points per dollar spend on selected categories that translates into 4 percent return. The only difference here from a cash back card is that you have to use these points to offset travel costs, instead of getting cash back.

Cash back credit cards can never beat travel credit cards because of the benefits and rewards travel credit cards can provide. And you can choose a propitiatory travel rewards credit card if you don’t want to go into points and miles. That begs the question: what is the only reason you should not use travel rewards credit cards? The answer is when you do not travel at all and not planning to travel ever.

For most of the population, travel happens often or will happen at one point in our lives. So to get the most out of your credit cards, go with a travel rewards credit card and enjoy the highest return credit cards provide among with other wide array of perks that no other types of cards can provide.

Can This Possibly Be The Lowest Interest Rate Credit Card in Canada?

American Express Launches 8.99% Rate Interest Rate Card

First Published Date: September 20, 2016

American Express, or AmEx, is known for its upscale cards that usually target customers with heavy spending. The annual fee for some of its cards skyrocket to $700 or even $900. However, this time Amex seems to be targeting traditional consumers who carry a balance with its new low-rate American Express Essential Credit Card.

While you will find most credit cards charge 20 to 30 percent interest, the American Express Essential Credit Card charges only 8.99 percent interest with no annual fee. This low rate is not a promotional rate and is here to stay unless market conditions change.

A few other credit cards in Canada, such as BMO Preferred Rate, Scotiabank Value Visa, CIBC Select Visa, and RBC Visa Classic Low Rate also provide low-rate cards where the interest rate can run 12 to 17 percent, but they don’t come close to the new American Express offer.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

Another card worth mentioning is the MBNA Trueline Credit Card. This no annual fee credit card charges interest rate based on your credit score and it can range from 5.99 to 14.99 percent. What I like about this card is that on the MBNA website it will tell you what your interest rate will be by doing a soft credit check that does not affect your credit score even before you start the application process.

As more players are offering more low-rate credit cards, consumers are the winners from the competition. And there definitely will be more credit card companies entering the arena of low-rate cards following the American Express Essential credit card in the future.