New CCs.. which to keep, which to close??

Discussion in 'Other Credit Card Programs' started by Crush627, Mar 23, 2011.  |  Print Topic

  1. Like most of you, I've taken advantage of the recent card bonuses and now have a wallet full of new plastic. Between spouse and I we have 6 new cards, 2 Citi AA and 1 Cap One each. Which ones should I keep? :confused:

    I'm leaning towards keeping/using spouse's Citi AA Visa (building that AA acct) and my Cap One (no forex fees). I'm new to the miles and card games... any suggestions? Should I close the other 4 or just not use them? If close, should I try to combine credit limits first? Which scenario is most likely to increase our credit scores?
     
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  2. carsonheim
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    carsonheim Gold Member

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    From my (humble) understanding, it's best to only close a card if there is a compelling reason -- for instance, you have three Chase cards and are declined for a fourth based on the number of Chase cards you already have. In that case, you might call Chase and offer to close on in order to open another. You might check out what Ingy has to say over at www.frugaltravelguy.com with regards to utilizing your credit. He's got some really GREAT advice!
     
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  3. Lyssa
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    Lyssa Silver Member

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    My husband just got the Citi AA Visa and AMEX. He will have to close one before the annual fee unless they will waive the annual fee or give a good mileage bonus. Otherwise, it wouldn't make sense to pay two annual fees for cards that earn the same miles for the same program.
     
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  4. gpaya
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    gpaya Gold Member

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    Closing the account will lower the scores. Keeping the account open as long as possible, keeping it on time, and zero balance will increase your scores.

    Wait for the annual fee to cancel and you may want to avoid applying for a new card as capital one pulls all three bureaus.
     
  5. jasher926

    jasher926 Silver Member

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    I've closed many accounts as I churn the CCs, and yes it does initially lower your score, but it is only by a few points and then after a couple of months it goes right back up.
     
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  6. techboyds
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    techboyds Silver Member

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    The short answer is that whatever damage has been done to your credit score is already done, and closing it now won't help, while keeping the card open might help a bit, so unless there's some specific reason to close (avoiding the annual fee, asked by an issuer in order to approve a new card, etc.), you probably shouldn't.

    Longer answers (and some pretty indepth discussion on the issue) can be found in this thread over in the Amex subforum, in which the original poster asks the same question.
     
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