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Thoughts? 3% cash back on your first 100k per year...
# credit
m
Thoughts? 3% cash back on your first 100k per year, but its backed by your house instead of consumer credit. https://www.aven.com/
r
m
but this a heloc, not consumer credit
still relevant?
c
I see 10k not 100k
c
You can get 1.5-2% cash back already. So the question isn't on 3% but 1-1.5%. Since there's also a max of on the first 100k per year you're talking about making $1-1.5k per year max.
ā˜ļø 3
m
here is the link to the 3% 100k https://www.aven.com/annualthree100k
idk about you, but an extra 1.5k per year sounds good to me
it also has a much lower interest rate to credit cards since it is equity backed, so you have a better emergency card
c
But theres also the risk of losing your home should things go poorly as small as that risk might be.
m
agreed, but i think that probability * value lost is far less than $1000, at least for me. Similar to the life insruance discussion, need to take the change of the risk into account and the ability to recover from it. But it's a good point
c
Not all calculations are purely about EV. But this also assumes you spend at least $100k/yr on credit cards. I would assume most people aren't spending nearly that much. So you're really talking about a few hundred at most.
i
Robinhood Gold Card offers 3% cashback (Not sure if available to everyone) Annual fee $50
r
My point is that the way they make money to give you cashback is acting as a cc card - where else are they pulling in this money?
c
It just acts as a secured loan so they don't need to make as much money to account for the risk
n
I got an offer from aven a long time ago. At first I was intrigued. But after reading the fine print, I was disgusted and threw it out. Unfortunately, I don't recall the details. Shame I didn't post it here (or if I did, I can't find it)
Robinhood gold has serious problems. I just got off the waitlist, but when I googled and read some reddit, I decided it's not worth it. Autopay is only on the due date. Taxes cannot be paid - charge will be declined. Reports of rewards clawbacks. Terrible CS. Not worth the headache, and I love CCs lol
Oh, I think I remember the story with Aven. They required some minimum borrow upfront with a fee. I think. Not the case here?
I don't see any such fine print. Maybe this is a new offering. Or it's buried later in the process. Tempting
m
okay, they also have this offer? https://www.aven.com/rewards-groceries
n
Are these mutually exclusive? I assume so. But both are forever?
m
it seems so?
at least until moshiach
c
will it be harder to refinance if I have this card?
m
it works like a HELOC, so an outstanding balance would negatively impact your DTI which would impact a refinance
thankyou 1
c
one card with 6% on groceries nd 2% on everything else would be gamechanger for people who insist on using one card
n
I'm guessing the ppl who insist on using one card don't want to put a lien on their house. I'm seriously considering the 3% card though, because I already get 6% groceries on $12k for an annual fee of $200. The 3% would give a better marginal benefit.
šŸ˜‚ 1
c
They may not care or know what their spouse does as long as they only use one card.....
n
Applied for the 3% card. Cool process with instant approval of a 6-figure credit line and an online notary for the documents. I signed and my wife's appointment is tomorrow.
šŸ’Ŗ 1
m
let us know how it goes!
šŸ‘ 1
n
Oh boy, it looks like RightCapital doesn't support Aven...
m
If YNAB does we can sync through frum finance...
n
I don't have YNAB. If I decide I care, I'll just scrape the Aven site
šŸŽÆ 1
f
Isn't it sketchy that they show different reward rates for the same card depending on the link you came from? https://www.aven.com/rewards-visa-card https://www.aven.com/rewards-groceries
n
Different offers - why is that sketchy? I get offers in the mail all the time that are not even available without my individual code
There are other things that bother me about the site, but for 3%, I'll accept them. We'll see how it goes. Also makes for a free emergency backup. I can access a lot of money instantly, and that usually requires a hefty HELOC fee
šŸŽÆ 1
f
It's sketchy because it's hard to know what are the rewards for this card. I've never seen a card that provides different rewards for different people. We're not talking about sign up offers.
The 6% grocery, 2% everything else is tempting. Replaces my Amex Blue Cash Preferred + Citi Double Cash, with no annual fee.
šŸ’Æ 1
r
The site looks sketchy - their legal disclosures are underwhelming
m
I also found it weird but just because I haven't seen anything like it before where the same card has different benefits depending on your entry point. Not because it's actually weird but just because it's a new concept.
n
Which legal disclosures? The stuff I signed looked pretty comprehensive. Arguably, I should have had an attorney review it, but I skimmed everything, and since I plan to pay every bill in full on the due date, 95% of it was irrelevant. Most of it is to protect themselves, similar to a mortgage. It all looked reasonable to me. My biggest "concern" is that they stop the 3%. I doubt there's anything preventing them from doing that. Of course, they immediately lose me as a customer, but I'm probably not going to be their favorite anyways...
šŸ‘ 1
m
iā€™m pulling the trigger
šŸŽ‰ 1
n
I'm waiting to use it until Jan 1, because I'm not entirely sure if I'll be able to easily export transactions at the end of the year, so I'd rather not deal with that for 2025. Have a stack of medical bills waiting for the 1st lol
f
I hesitantly began the sign up process. They claimed the credit bureau check didn't provide enough info, they wanted me to connect my back account with Plaid. At that point my hesitancy took over and dropped it. I'm a renter and tried their grocery card.
m
i didn't have to connect with plaid, just uploaded my proof of income
n
They never asked me for proof of income. I'm assuming they verified it somehow, but I don't see how. Maybe via the IRS?
m
Did you link your bank account
Maybe your house has a lot more equity than mine?
n
No bank account Possibly - Passaic skyrocketed since I moved in
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