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  1. #1
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    cyinne's Avatar
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    New Credit Card question

    I am thinking about upgrading to a different credit card with better "perks" and closing my current card. I will have no balance transfer- so will be pretty much starting from scratch. I have done this two times before both times with a balance transfer- i mostly did it because the new card that I was going to had lower interest rates.

    In doing this does it hurt your credit rating?



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    Re: New Credit Card question

    Quote Originally Posted by cyinne View Post
    I am thinking about upgrading to a different credit card with better "perks" and closing my current card. I will have no balance transfer- so will be pretty much starting from scratch. I have done this two times before both times with a balance transfer- i mostly did it because the new card that I was going to had lower interest rates.

    In doing this does it hurt your credit rating?

    There are a lot of myths bout it but no it wont hurt it, keep your open tradelines around 3 to 4 max and also keep your balance under 50% of the limit and that improved your credit score. Also you can have your credit pulled as many times in a month as you want by Mortgage companies only as well and it does not hurt your credit....which is another myth out there.



  3. #3
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    Re: New Credit Card question

    Quote Originally Posted by cyinne View Post
    I am thinking about upgrading to a different credit card with better "perks" and closing my current card. I will have no balance transfer- so will be pretty much starting from scratch. I have done this two times before both times with a balance transfer- i mostly did it because the new card that I was going to had lower interest rates.

    In doing this does it hurt your credit rating?
    Being a credit analyst and looking at several credit reports each day, it depends on the situation. It definitely helps if you have multiple cards as long as you keep your total balances low. Optimally you would like to keep your balances below 30% of your total credit available, and with multiple cards you don't want to load up and max 1 card out with the others having $0 balances. Also, it looks better when you have an account open for a longer period of time as your score takes into account the average age of your accounts open (longer they have been open = greater the score).

    It also helps to have a variety of types of accounts open as it shows you are able to manage it. Having an auto loan, mortgage, credit cards.

    My opinion would be to keep the current card open and use it to pay for gas once a month and then make sure to pay it off each month. Helps out your score and don't have to pay any interest on it as long as you pay it off in full.



  4. #4
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    Re: New Credit Card question

    Don't run a blance and you won't need to worry about rates. I just recently went with a capital one venture credit card and they gave me 46k miles. What I I like is that the miles work like cash on travel. You just prove that you had a hotel or flight and they refund you your credit card.

    It doesn't sound like you've had this credit card for a long time so that shouldn't hurt your score too bad. If you've had a credit card for a long time and you get rid of it, it can hurt your credit.

    I worry very little about my credit score. Most people with crappy credit scores deserve it.



  5. #5
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    Re: New Credit Card question

    Quote Originally Posted by dmclone View Post
    Don't run a blance and you won't need to worry about rates. .
    THIS



  6. #6
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    Re: New Credit Card question

    Quote Originally Posted by cyinne View Post
    In doing this does it hurt your credit rating?
    just don't apply for 3-4 cards in a 1-2 week timeframe.

    Mortgage inquiries shouldn't affect your credit score--just don't over-do it.

    I would keep your credit card balances at 30% of limit---or less



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