Applying for a 2nd Virgin flyer CC purely for the sign-up bonus points?

[smit0847]

I have a Virgin flyer platinum VISA CC. I pay it off in full every month (haven't paid a cent of interest) and only have it for the points benefit (i've never had a CC before this one). I have absolutely no debt, a stable, well-paying job and think I am a very good credit risk (Virgin has already offered to double my credit limit).

I signed up for the card because there was a 20K points bonus. So, could I get a second card purely for a similar sign-on bonus and just not use it? Cancel it in 6 months time to avoid a second annual fee? Does this make sense provided you are very careful with your finances (I assume some people have more than 1 personal CC) or is this a stupid (and impossible) idea? Is there a limit of one Virgin CC card per person? Can I get 1 VISA and 1 AMEX?

Could I then theoretically use my second card to pay off the balance of my first card every month to get twice the amount of points (and then pay off the balance of the second card in full each month from a savings account)?. Could I theoretically get a 3rd card and just keep the process going, getting triple the amount of points? (I would obviously have to have the timings of payments perfect to avoid interest).

Is this genius or stupid?

 

[TtiGeR]

1. I don't think Virgin (or Citibank precisely) will issue you a second card without splitting your current credit limit as they just doubled your limit recently.
2. It is unlikely that you would get another welcome bonus for the same card product. Welcome bonus is typically available to new customers only.
3. Yes, you may have multiple credit cards. Brand does not really matter, but financial institutes are less likely to offer you high limits if they know you already have credit card(s) with other banks. If they believe your existing credit limit is already high, they may just refuse your application.
4. Balance transfers (or cash advances) won't give you points in most cases. If you are just looking for more Velocity points, the Virgin High Flyer card has better point earning rate than the Virgin Flyer card but also has a higher annual fee. The AMEX Velocity Rewards Cards are also quite attractive.

 

[The Rok]

There are a number of individuals on here that will tell yoiu tales of how they churn through up to half a dozen (or more) credit cards per year just for the sign on bonus. To a certain extent it might be acceptable, but I will only say two words....... DANGEROUS TERRITORY

Do you own your own house? If not and you are considering getting a mortgage within the next 3 years then stick with what uoi have.

Have a look here

http://www.australianfrequentflyer....it-how-many-ff-credit-33449-3.html#post536574

 

[medhead]

I think most card companies do not allow payment of the monthly statement with another credit card. The only way is balance transfers but those accrue interest immediately.


Sent from my iPhone using Aust Freq Fly app so please excuse the lack of links.

 

[smit0847]

1. I don't think Virgin (or Citibank precisely) will issue you a second card without splitting your current credit limit as they just doubled your limit recently.
2. It is unlikely that you would get another welcome bonus for the same card product. Welcome bonus is typically available to new customers only.
3. Yes, you may have multiple credit cards. Brand does not really matter, but financial institutes are less likely to offer you high limits if they know you already have credit card(s) with other banks. If they believe your existing credit limit is already high, they may just refuse your application.
4. Balance transfers (or cash advances) won't give you points in most cases. If you are just looking for more Velocity points, the Virgin High Flyer card has better point earning rate than the Virgin Flyer card but also has a higher annual fee. The AMEX Velocity Rewards Cards are also quite attractive.

Thanks for your responses. This is something I am unlikely to ever try, Im just interested to see if its possible.

I declined the limit increase as I only average just under half my limit in spendings each month anyway so I didn't see the point.

I work for a bank, and would argue that a history of fully servicing a debt (regardless of how much debt it is) is just as attractive to banks as having no debt at all. While they may review your position and think they probably wont make much money from you in interest and fees, at least they won't be concerned about losing money instead.

Can you really not pay your credit card bill with another credit card? I pay my gas bill with my credit card via BPAY, and then pay by CC bill with my debit card via BPAY. I don't see why you couldnt pay a CC Bill via BPAY with another CC - it's just like any other bill and its not a balance transfer.

 

[VOZZY]

Hey Smit,

I dont know about the velocity point condidtions are its not my field but I consult to three of the big banks on consumer credit scoring and approval criteria. Take care with this kind of activity. It has real potential to influence the banks scoring systems in such a way as to reduce your chances of getting future credit.

Having 2 cards with one bank (when allowed) is often seen by bank fraud detection systems as an indicator of potential fraud. You may find this will also increase the rate you pay for future lines of credit.

I am sure you are careful and always pay your card bill on time. Just take care. Sorry to sound preachy I have just seen so many people damage their credit scores with these small things.

Cheers

Vozzy

 

[medhead]

Can you really not pay your credit card bill with another credit card? I pay my gas bill with my credit card via BPAY, and then pay by CC bill with my debit card via BPAY. I don't see why you couldnt pay a CC Bill via BPAY with another CC - it's just like any other bill and its not a balance transfer.

I'm not 100% on this point but I do know that BPay can restrict payments from credit cards for some billers. I assume that credit card billers would implement such a restriction.


Sent from my iPhone using Aust Freq Fly app so please excuse the lack of links.