How often should I change credit cards to maximise bonus and other points while avoiding excessive card fees? Does this question even make any sense?
I should have mentioned when I posed the question that I never, ever pay any interest on my credit cards - they are always paid off in full every month. Secondly, I would certainly not keep on adding extra cards. Instead I would cancel an existing card whenever I obtained a new card. I hope this extra context clarifies what I’m after.
The optimum period is whenever there is a promotion that you want to sign up for. There really isnt anything complicated about it.
Yes, your question makes perfect sense. It’s a great question. However, it would be highly irresponsible, if not illegal, for someone who’s not a trained financial advisor with knowledge of your specific situation, to answer it!
Your first priority must be to do what’s financially responsible for you and anyone who’s dependent on you. Earning points comes second. Be patient, start conservatively and slowly, and then over time you’ll come to an understanding of what works for you and what your limitations are. That’s much better than the alternative of getting too many cards too soon and ending up in financial distress or with a credit rating that’s too low at the exact time that you really need finance.
All the best!
Thanks sixtyeight. I now realise that my initial question could lead you to respond as you did. I’ve added a little further background now to put my (very conservative) financial behaviour into the mix. Regards
Thanks again sixty-eight. You’ve partly answered my question by indicating that you do go for credit cards that you get just for the sign-up bonus and then cancel. I suppose that, then, the calculation is how much one is willing to spend in fees in order to get the sign-up bonus (pretty much, what is the cost per point?), as well as any credit rating issues - a question I hadn’t been aware of until you highlighted it.