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Unsure what to do with maximizing credit card benefits - advice needed

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Deal Addict
Jul 6, 2005
4451 posts
2140 upvotes
Toronto

Unsure what to do with maximizing credit card benefits - advice needed

I'm hoping to get some advice on how to better make use of various cash back/rewards/points/etc credit card products. I have a THREE PART QUESTION below:

I currently have a CIBC Platinum Dividend card ($79 Annual Fee). I really don't think I use this card to it's full potential because I only received about $60 in cash back for 2014 on my November statement (annual pay out) and has been around that amount for the past several years. I've had this card for about 8 years now. I guess my biggest mistake was not realizing that it is a tiered divdend system and only pays 2% when you've spent >$35,000 on the card (LOL, not happening)

Admittedly, I usually pay cash/debit for everything (gas, restaurants, groceries, entertainment) and only have used my credit card for online transactions where paypal is not accepted. I'm willing to change my spending habits to use a credit card for on things I spend most frequently: gas, restaurants, public transit and larger purchases to take advantage of some of the various rewards.

For instance, I recently applied and got approved for the Chase Amazon.ca VISA which is no-fee card and actually works very well for what I would consider to be a "second card" for all my online purchases (which I do quite a bit of), especially with stuff purchased in USD or from amazon.

QUESTION 1:
So, I'm looking to replace my CIBC Platinum Dividend "primary card", with something that will better suit my spending habits (at most $20,000 per year on a credit card) for gas, restaurants, public transit, etc. I'm not opposed to a card with an annual fee but a no-fee is obviously preferred (however the features/benefits of these seem rather limited). I don't do much traveling right now so airmiles/aeroplan/travel insurance don't mean much to me. My banking institution is with CIBC, but don't feel like I need to keep my credit card with them either and would consider other institutions.

QUESTION 2:
What's the best way of getting rid of my current CIBC platinum dividend card? I know for sure that I no longer want this card and there must be a better solution/product for me. Can I cancel any time (as long as the balance is paid off) or do I have to wait until the expiry (this year) to cancel before the expiry date? I've seen others look into "downgrading" their cards to a no-fee card... however, I've looked over what CIBC has to offer, and none of their no-fee cards appeal to me. I guess, basically, how best/easy can I get rid of this card without affecting my credit score.

QUESTION 3:
Based on question 2 above, if I were to cancel my CIBC platinum dividend card... should this be done BEFORE or AFTER I get a new "primary card" and how far apart should these actions be done (application for new card and cancellation of current card)?


Sincere thanks for your help... there appears to be quite a bit of knowledge in the sub-forum about different credit card products.
22 replies
Member
Jan 3, 2013
261 posts
83 upvotes
NORTH YORK
mbna travel, 2% everything
Sr. Member
User avatar
Apr 5, 2009
948 posts
334 upvotes
Toronto
Repooc wrote: I'm hoping to get some advice on how to better make use of various cash back/rewards/points/etc credit card products. I have a THREE PART QUESTION below:

I currently have a CIBC Platinum Dividend card ($79 Annual Fee). I really don't think I use this card to it's full potential because I only received about $60 in cash back for 2014 on my November statement (annual pay out) and has been around that amount for the past several years. I've had this card for about 8 years now. I guess my biggest mistake was not realizing that it is a tiered divdend system and only pays 2% when you've spent >$35,000 on the card (LOL, not happening)

Admittedly, I usually pay cash/debit for everything (gas, restaurants, groceries, entertainment) and only have used my credit card for online transactions where paypal is not accepted. I'm willing to change my spending habits to use a credit card for on things I spend most frequently: gas, restaurants, public transit and larger purchases to take advantage of some of the various rewards.

For instance, I recently applied and got approved for the Chase Amazon.ca VISA which is no-fee card and actually works very well for what I would consider to be a "second card" for all my online purchases (which I do quite a bit of), especially with stuff purchased in USD or from amazon.

QUESTION 1:
So, I'm looking to replace my CIBC Platinum Dividend "primary card", with something that will better suit my spending habits (at most $20,000 per year on a credit card) for gas, restaurants, public transit, etc. I'm not opposed to a card with an annual fee but a no-fee is obviously preferred (however the features/benefits of these seem rather limited). I don't do much traveling right now so airmiles/aeroplan/travel insurance don't mean much to me. My banking institution is with CIBC, but don't feel like I need to keep my credit card with them either and would consider other institutions.

QUESTION 2:
What's the best way of getting rid of my current CIBC platinum dividend card? I know for sure that I no longer want this card and there must be a better solution/product for me. Can I cancel any time (as long as the balance is paid off) or do I have to wait until the expiry (this year) to cancel before the expiry date? I've seen others look into "downgrading" their cards to a no-fee card... however, I've looked over what CIBC has to offer, and none of their no-fee cards appeal to me. I guess, basically, how best/easy can I get rid of this card without affecting my credit score.

QUESTION 3:
Based on question 2 above, if I were to cancel my CIBC platinum dividend card... should this be done BEFORE or AFTER I get a new "primary card" and how far apart should these actions be done (application for new card and cancellation of current card)?


Sincere thanks for your help... there appears to be quite a bit of knowledge in the sub-forum about different credit card products.
Q1: Check out http://www.ratehub.ca/credit-cards to see what kinds of card will fit your specific spending patterns.

Q2: You can cancel any time. I suppose it's best to cancel some time before they charge you next year's fee to avoid paying it again. If they charged you the annual fee recently, there is no point rushing to cancel it.

Q3: You can cancel whenever you want. I would not cancel my one and only card before getting another simply because then you will have no card and would not be able to shop online until you get the new card. It can take weeks to get your new card because aside from application processing, there is also time to get it by mail, etc.
Deal Addict
Sep 5, 2010
2352 posts
382 upvotes
Toronto
x2012t wrote: mbna travel, 2% everything
Stupid question, but since it is called 'travel' how do you get 2% and get to travel? or do you mean the 2% you get back in cash can be applied to either travel or get back as cash. I ask because a few weeks ago I was thinking whether a card exists that allows you to get cash back as well as be able to use it for travel.
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Deal Addict
Aug 31, 2014
1505 posts
564 upvotes
YVR, BC
a person generally only needs 2 cards

a good cash back card

a good travel rewards card

preferably both would be with no annual fee - BUT there are incentives out there with waived fee's or voided fee's by your banking institution.
Member
Jan 3, 2013
261 posts
83 upvotes
NORTH YORK
Personally prefer:
1 good credit card without annual fee, (eg: mbna smart cash, capital one Costco card. )
1 credit card with annual fee, you can cancel and switch to another annaual fee credit card every year( mbna travel, capital one aspire, TD infinit... and so on)

prefer: 1 mastercard, 1 visa, do not carry same company credit card (just in case something wrong)
Deal Addict
Jul 6, 2005
4451 posts
2140 upvotes
Toronto
604nation wrote: a person generally only needs 2 cards

a good cash back card

a good travel rewards card

preferably both would be with no annual fee - BUT there are incentives out there with waived fee's or voided fee's by your banking institution.
This actually sounds very sensible. Thanks!

Like I mentioned in OP I don't travel much (recently bought a cottage and have very young kids), have the chase Amazon visa as my secondary card.... So I guess this means I need to find myself a good cash back card as my primary.

I'll look into the MBNA travel as suggested above and I see the Scotia gold amex being suggested many times in other threads.

My only concern with amex is that its not really accepted at many places (I could be wrong)... This is my understanding from many years ago.
Deal Addict
Aug 13, 2008
3401 posts
426 upvotes
Mississauga
I too am in the middle of cleaning up my credit card collection. I will reduce it down to:

1 smart cash mbna
2 TD first class infinite (annual fee waived)

I have the TD Aeroplan but realized that I now have 200k Aeroplan points that I haven't used. So I'm going to downgrade or cancel that one and completely rid myself of all annual fees.

I may so break that rule as I am now also considering the Scotia cash back card.
Deal Fanatic
Aug 27, 2004
7673 posts
1131 upvotes
Toronto, ON
604nation wrote: a person generally only needs 2 cards

a good cash back card

a good travel rewards card

preferably both would be with no annual fee - BUT there are incentives out there with waived fee's or voided fee's by your banking institution.
Not sure I agree with that. I'd say that someone needs purpose-specific cards (e.g. Costco MC for restaurants, Amazon Visa for forex, etc), and then one good catch-all, possibly-annual-fee card for everything else. That everything else card can give cashback or travel rewards, that's up to you...
Deal Fanatic
Aug 27, 2004
7673 posts
1131 upvotes
Toronto, ON
I'm in the same boat as the OP - I have the Infinite version of the Dividend card, which is roughly the same as the Platinum one, and I'm somewhat irrationally attached to it, even though I really should switch to something else as my main card.

My plan would be to downgrade to something else, if only to keep the credit history (I've had a CIBC card for 13.5 years) and the extended warranty benefits for all the things I've bought with it. Perhaps the no-fee Dividend?
Deal Addict
Jul 6, 2005
4451 posts
2140 upvotes
Toronto
A lot of good advice in this thread already and so quickly. Thanks for all the suggestions everyone. I have some reading to do tonight for sure. I appreciate your real world experience with the various cards.

So it seems like its generally recommended that your primary and secondary cards be different credit agencies (ie: visa + mc or amex + visa and not have visa + visa)... I can't say that I've ever had a problem with visa not working.
Deal Guru
User avatar
Mar 1, 2004
12861 posts
1485 upvotes
Pickering
I use the World Elite Aventura M/C for my primary and the CIBC Platinum Dividend Visa for my secondary card. I put everything I can on the M/C phone, internet, cell phone, gas, trips, appliances, food, anything. Last year at a very inconvenient time, my card was potentially compromised and I had to go a week with no M/C. Now the Visa stepped up and took over duty providing me with better than average benefits.

Now with Costco going M/C, I am going to be able to redeem for trips sooner. Going on vacation and having to pay for hotel only was much appreciated by my bank account.

I now want to see if there are any rewards programs for hotels.
Deal Fanatic
Aug 27, 2004
7673 posts
1131 upvotes
Toronto, ON
Repooc wrote: So it seems like its generally recommended that your primary and secondary cards be different credit agencies (ie: visa + mc or amex + visa and not have visa + visa)... I can't say that I've ever had a problem with visa not working.
Given the Costco MasterCard exclusivity, then unless you are involved in the Olympics (where only Visa is accepted), I would think MC-only would be fine.

Realistically, with few exceptions, most of the highest-regarded cards around this forum are MC. Other than the Amazon.ca Visa, I don't think there's any Visa people here really like...
Deal Addict
Jul 6, 2005
4451 posts
2140 upvotes
Toronto
OK... I think I've narrowed this down to what would be best suited for my spending habits:

PRIMARY: MBNA Rewards World Elite Mastercard - FYF and then $89 annual fee (need to apply)
SECONDARY: Chase Amazon.ca Visa - no annual fee (applied and approved a couple days ago)
TERTIARY: CIBC Dividend Visa* - no annual fee (will try to downgrade my current CIBC Dividend Platinum Visa)

I've come to the conclusion that I don't need an AMEX thrown into the mix and I certainly don't want to have another fee card that I don't intend on using regularly.

FINAL QUESTIONS:
1) *My final question is regarding my proposed TERTIARY CIBC card. I don't really need it, but I'm worried that if I cancel my existing CIBC Dividend Platinum Visa completely, I will lose a lot of credit history from this sole card I've used over the past 8 years. I'm hoping that by downgrading it to a no-fee VISA product with the same institution it would be better for my credit rating/history (strictly speculation)..... Or does it really matter, considering that I have another VISA product in my wallet (the secondary card)? If it doesn't matter then I'll gladly ditch the CIBC card altogether and only have the primary and secondary cards.

2) Is it bad to apply for two different credit cards in one week? I imagine that they will both be hard hits in a credit check if I apply online? I would like to apply for the MBNA card ASAP so that I can get rolling on downgrading/cancelling the CIBC card immediately.

Thanks again for all your advice and VERY helpful input
Deal Addict
Jul 6, 2005
4451 posts
2140 upvotes
Toronto
YAY.... I went ahead and applied for the MBNA RWE M/C and got instantly approved. I found the answers to my above questions by googling it.

I'll be downgrading my current CIBC Visa to a no-fee CIBC Dividend Visa.

This is pretty exciting. Thanks again to everyone who helped.
Deal Addict
Feb 10, 2013
4783 posts
1328 upvotes
Richmond
:) depending on how much you spend in groceries, Scotia momentum infinite visa might be a better choice if you qualify.


once your rwe/rtp arrives, swap your cibc visa for the timmy's visa. 1% in tim cash at tim Horton.
i personally use the mbna rtp and pcf mc.
Deal Fanatic
Aug 27, 2004
7673 posts
1131 upvotes
Toronto, ON
Repooc wrote: 2) Is it bad to apply for two different credit cards in one week? I imagine that they will both be hard hits in a credit check if I apply online? I would like to apply for the MBNA card ASAP so that I can get rolling on downgrading/cancelling the CIBC card immediately.
Downgrading a card should not count as a hard hit...

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