Personal Finance

Lowering Credit Limits & New Credit Cards

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  • Jan 21st, 2014 3:45 am
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[OP]
Newbie
User avatar
Sep 24, 2012
57 posts
9 upvotes
Edmonton

Lowering Credit Limits & New Credit Cards

Hey guys, so I have a few credit card and I'm not too sure how to go about this.

Currently it is as follows:

TD First Class Infinite - $25,000 Limit (Had since Aug 2012)
RBC Classic II - $3000 Limit - (Don't use, but I had this since 2007)
MBNA Smart Cash - $9,000 Limit (Had since 2013 July)
AMEX True Earnings Costco - $15,000 Limit (Had since Sept 2013)

Currently I use the TD FC for my business expenses roughly 50% of the limit each month
I don't use the RBC at all, but I've kept it because its my longest standing credit card.
The MBNA Smart I just got it from the $100 cash + its a decent card for gas/groceries
The Amex I got this one because Costco doesn't accept any credit cards beside Amex.

Here's the thing I'm looking at getting another Travel type Credit card that must have a highish limit - Roughly 20-30K because I'll be using 50% of the card every month just like my TD FC.
However, this card MUST be from a big bank! My company wont allow me to use my MBNA/Amex/Cap 1 because they cannot go pay my bill at the bank.. also no CIBC. I don't make the rules lol...

I'm worried that I have quite a few higher limit cards. Should I decrease my Amex card to say 5k, and my MBNA to 5K as I really don't use them that much besides from Gas/Groceries/Restaurants?

Also, would it be stupid to close my RBC one since I've had it since I was 18? Seems so pointless to keep a card around the house.

All my cards are currently no fee, but I don't mind paying a fee since this new card that I would like to get would be used quite a bit. 10-15k a month being charged.

Any advice would be awesome! Thanks!
10 replies
Deal Addict
Aug 25, 2005
4588 posts
1218 upvotes
Someone can correct ne if I'm wrong but TD FC is probably the best generic travel type credit card available from the big banks. Your other choices would be specific travel reward programs like aeroplan credit cards (TD/CIBC), Avion (RBC) or AirMiles (BMO) which I personally find too constricting.

If your company pays the annual fee, go for the Scotiabank Platinum American Express.
Deal Addict
Jan 30, 2012
1438 posts
695 upvotes
TORONTO
Apparation wrote:
Jan 10th, 2014 3:41 pm
However, this card MUST be from a big bank! My company wont allow me to use my MBNA/Amex/Cap 1 because they cannot go pay my bill at the bank.. also no CIBC. I don't make the rules lol...
That's really strange, I've never heard of an employer paying an employee's business expenses that way.

Typically the employee files an expense report with the receipts, it gets processed by accounting and the money appears on the employee's next paycheque/direct deposit.
Member
Nov 6, 2013
282 posts
39 upvotes
Vancouver
The Scotiabank Gold American Express travel card is decent, they have a $99 annual fee first year waived and 15,000 points sign up bonus. You will earn 4 points for every $1 spent on gas, grocery stores, on dining and entertainment.

The BMO World Elite is another option. It is also waiving it's first year annual fee.

If you are uncomfortable with so much limit, then yes, lower your credit limit on the cards that you do not plan on using as much and focus on the cards that you do plan on using more often.
[OP]
Newbie
User avatar
Sep 24, 2012
57 posts
9 upvotes
Edmonton
BenK wrote:
Jan 10th, 2014 4:09 pm
Someone can correct ne if I'm wrong but TD FC is probably the best generic travel type credit card available from the big banks. Your other choices would be specific travel reward programs like aeroplan credit cards (TD/CIBC), Avion (RBC) or AirMiles (BMO) which I personally find too constricting.

If your company pays the annual fee, go for the Scotiabank Platinum American Express.
I would have to pay for the annual fee. So the Platinum is pretty steep at $399.99 for me at least.

I was looking at the TD Aeroplan Visa Infinite (I'm kind leaning towards an MC/VISA)
Deal Addict
Dec 31, 2009
1568 posts
141 upvotes
Do not reduce your limits. Other than the TD Visa, they aren't that high. Unless you have a specific reason (and there are very few good reasons - like applying for a mortgage and the bank asks you to reduce them), never ever voluntarily reduce your limits. You applied for the credit, it's yours. If you give it up you are guaranteed to be applying for it again in the future.

Anyways, try the National Bank Platinum or National Bank World Mastercard. With all things considered it's the best card in the country right now. You sound like a guy who spends a lot per month, so you seem like a good candidate. It's for travelers and people who have money. It's not for posers and wanna-be's who are looking for an easy rebate system to milk. Let your points build until you reach at least the $500 level and then cash them in for a credit on your account. It can all be done online so you don't need to be on the phone for 45 minutes.

The typical RFDer doesn't usually support these cards because the points system is designed to discourage people from cashing in points for small amounts, something a lot of RFDer's find offensive for some strange reason. ("Wah! I bought a subway pass! I want my 2 dollars and fifty cents back right now!"). In other words; this card is for genuine honest-to-goodness travelers and successful people who don't have time to worry about their nickel and dimes.

You can use the points for merchandise, but like every other card in the country the products are marked up in value to such an extent that it is not worthwhile.

The card will TRIPLE the manufacturers warranty on most purchases (other cards only double it) and it has purchase insurance for 180 days after purchase (other cards usually only have 90 days).

They're pretty liberal with credit limits too. At least in my experience. And I don't even have a bank account with them any more. I did a few years ago when I lived near a branch, but for the last few years I've had no products with them except one of their Mastercards.

They have promos from time to time (at least once a year) where you can earn extra the points for a limited time if you make certain purchases. These seem to be by invite-only, I don't think they're cardholder wide. Or they might just be tailored to individual cardholders. I don't really know because I don't know too many people who carry this card. Last spring I had a promo for 4x points on purchases in US Dollars and then another one that was 3x the points on ALL purchases in November & December. A couple years ago it was 3x the points on any purchase made outside Canada, and then another one was 5x the points on airline tickets, cruise ships, rental cars, and major hotel chains.

It has Travel Medical Insurance for trips up to 60 days (30 days if you're over 55 and 15 days if you're over 65...I think. Something like that...). It's thru Blue Cross so you got some piece of mind there. It's not some odd-ball company nobody has ever heard of and tries to screw you over at every turn if you ever have to file a claim.

If you get the card, after a year or so they might invite you to upgrade to the World Platinum Mastercard if you use it a lot. (Just to be clear: they have a WORLD MC and they have a PLATINUM MC for public applications. The WORLD PLATINUM MC is by invite only.) I'm not sure of the distinct differences between them all, to be perfectly honest.
Deal Addict
Feb 10, 2013
3997 posts
621 upvotes
Richmond
Try the scotia amex gold. it's one of the best cards for travel. 4x point for groceries and gas, dining and entertainment. Can't go wrong with this card.

@Paulfistinyourface really? it seems to have really payout. The complaints aren't towards the benefits but rather the percentage it pays back is dismal. You literally have to spend $7333 just to earn $100 back? This card is crappy. You can get a much better card from the big 5.
Deal Fanatic
Feb 15, 2006
8033 posts
2344 upvotes
Toronto
The limit on the mbna smartcash can be reduced, say to 1k. Since the limit to get the 5% is only up to $400 spent, it's not necessary to have limit of more than $800 any way.

You can get the TD aeropeso infinite. Ask td to split your existing limit between the FC and aeropeso cards, that way you don't get a credit check hit. The FYF and 15k bonus points are nice. Or can ask for a higher limit in the td card(s), which would result in a credit check, but you should be alright. Heck, could also apply for the cibc aeropeso card and even the Aventura card, to get the FYF and each gets 20k bonus points, free.
Deal Addict
Dec 31, 2009
1568 posts
141 upvotes
bluebellrose wrote:
Jan 12th, 2014 6:11 am

@Paulfistinyourface really? it seems to have really payout. The complaints aren't towards the benefits but rather the percentage it pays back is dismal. You literally have to spend $7333 just to earn $100 back? This card is crappy. You can get a much better card from the big 5.
LOL. Seriously. What?

It's 1.5%. You need to spend $33,333 to get 50,000 points. 1.5% of 33,333 is $500. (note: the World goes to 2% on spending between $20k and $30k)

You're the reason I pointed out the typical RFDer doesn't support this card. You're looking at the lowest possible rebate level. They discourage users like you by reducing the amount of dollars paid per point at lower levels. It weeds out the posers who don't actually have money (i.e. most RFDers). Processing a rebate every time you buy a bus pass or pay to sleep on that lumpy military-surplus urine-stained mattress in the $5/night hostel you booked costs them time and money. They prefer users like that to take their BO and jar of coins and apply for a Capital One card or some other crap issuer like that.
Newbie
User avatar
Jul 25, 2013
59 posts
5 upvotes
Northern BC
Paulfistinyourface wrote:
Jan 12th, 2014 11:33 am
LOL. Seriously. What?

It's 1.5%. You need to spend $33,333 to get 50,000 points. 1.5% of 33,333 is $500. (note: the World goes to 2% on spending between $20k and $30k)
bluebellrose wrote:
Jan 12th, 2014 6:11 am
rather the percentage it pays back is dismal. You literally have to spend $7333 just to earn $100 back? This card is crappy. You can get a much better card from the big 5.
1.5% is far from dismal. Sure, 1% is bad, but 1.5% is a pretty normal percentage and decent enough. And the Big 5 usually have the worser offers. :P
Deal Addict
Feb 10, 2013
3997 posts
621 upvotes
Richmond
Paulfistinyourface wrote:
Jan 12th, 2014 11:33 am
LOL. Seriously. What?

It's 1.5%. You need to spend $33,333 to get 50,000 points. 1.5% of 33,333 is $500. (note: the World goes to 2% on spending between $20k and $30k)

You're the reason I pointed out the typical RFDer doesn't support this card. You're looking at the lowest possible rebate level. They discourage users like you by reducing the amount of dollars paid per point at lower levels. It weeds out the posers who don't actually have money (i.e. most RFDers). Processing a rebate every time you buy a bus pass or pay to sleep on that lumpy military-surplus urine-stained mattress in the $5/night hostel you booked costs them time and money. They prefer users like that to take their BO and jar of coins and apply for a Capital One card or some other crap issuer like that.
The thing is the amount to redeem is quite high and not that flexible plus there's the $125 annual fee. way too much imo. The high annual fee is the dealbreaker. It's even more expensive than the aspire world travel at $120 and the aeroplan cards by td atm and offer 1.5 to 2% back in travel miles as well.

The scotia momentum infinte visa is for high spenders as well. But other than that it's on par with the capital one aspire cash world. The amount of redemption doesn't matter. It's the annual fee they charge when there are cards out there that offer a similar rebate for less of an annual fee. But you are right, there are some that want to redeem at $5 amounts. Most folks on rfd don't do that. Most of us use cards that require a high spending. Lots of cards redeem at the $20 mark or higher.

See if you can convert the mbna smart cash to mbna rewards. Depending on how much you spend on it, td/mbna will invite you to the world elite version and waive the fee.

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