Originally Posted by
sdsearch
No, it won't free your credit in time. It's likely to take 3 to 6 months after you cancel before the credit from that card is free'd up. (This is explained in the wiki, in item #4.)
On the other hand, if you don't cancel beforehand, you may be asked by Citi (during the new card's application process) to move some credit around onto your new card. They can do that only from a card that's still open.
So the proper order to do it in is to leave the old card open, apply for the new card, perhaps move credit from the old card to the new card during the new card application process phone call or online chat (if you're not approved automatically), and only then cancel the old card (after as much credit as possible has been moved off of it to the new card).
I'm not sure this is still correct. I have/had numerous AA & HH Citi cards. Yesterday I applied for another HH card each for my wife and I. I knew last time we talked to Citi they gave the "you're maxed out for credit with us" and had to move it around for approval. So...this time I applied for my own without cancelling an existing card. I had to call in for approval - although I didn't have to transfer credit, they only gave me a CL of $3k. For Mrs. Ops5 I cancelled one of her AA cards with a CL of $16.5k. 24 hrs later applied for the HH and she was instantly approved with CL of...$16.5k. Coincidence?