Zanis520

Hi everyone,

Been doing a lot of digging and I can't seem to find a definitive answer here (not sure if it matters either).

I have the Chase IHG Rewards card, and I'm looking to transfer all of the credit line to my Sapphire Preferred card, and then close the IHG card altogether. This was one of my first cards when I started to get into the points/miles game, and now I have a Hilton Surpass card, so I don't really ever use the IHG card (I recently just went on a trip and used all the points). My 3 year anniversary with the card is Nov. 2 so I'd probably like to close it before that milestone.

Additionally, I want to get the Citi Prestige card and take advantage of the 50k signup bonus as well as the new promotion with the 50k signup for a CitiGold Checking acct.

I'm looking to do both of these within the next month, but was curious if it mattered which I do first? I know that opening the Prestige will get a hard credit check (I've had 2 other hard checks this year for other cards, one in May, and one in Aug). I know it knocks my score down only a couple of points, but closing the IHG will also knock it down (although not as much as a normal closure since I'm transferring all the credit line to another acct.).

Would it be better to transfer the credit/close the IHG first and THEN apply for the Prestige, or should I open the Prestige and THEN transfer the credit/close the IHG? I have very good credit so obviously want to keep it that way, but also want to maximize my chance at getting approved for the Prestige (especially since I've opened 2 other cards this year).

Any help would be greatly appreciated. Sorry for the long post!!!

beckoa

Welcome to Flyertalk Zanis520,

As this is pertaining to credit cards, we'll move your thread to the appropriate forum.

~beckoa, co-moderator Information Desk

garykung

Welcome to FT.

Simple - opening before closing.

Zanis520

Ah ok great, thanks. I know that sometimes if you have too many hard checks/new acct openings in a short amount of time that it looks like you're desperate for money. Didn't know that you should always open something before closing. Appreciate the help!

garykung

The logic behind this is very simple.

If you apply for another card, you can be sure that it definitely has nothing to do with the proposed closing, regardless when you get approved or rejected.

But once you have closed the account, if reported, the issuer will have to take that into consideration.

takeshi74

The main impact due to closure is the impact to revolving utilization. AAoA is not impacted until the closed account falls off your reports and that's typically 10 year after closure. If you're transferring the available credit before closing then they impact may be negligible. You can do the math to help you see the impact to revolving utilization.

I doubt you'd see much difference either way. However, if you want to play it safe as possible then apply before closing.

Zanis520

Great, thanks so much for the input. Much appreciated!

tev9999

If you can make use of one IHG stay per year, keep the IHG card. It comes with an annual free night that is easily worth more than $49 annual fee. There is no reason you can't have both a IHG and CSP card - and a half dozen more. At some point you will hit maximum exposure with Chase in terms of total available credit, but if you only have one Chase card now you are likely not there yet. Even if you are they will move your lines around if necessary. Having many active, good standing accounts is good for your credit.

IHG promos can also be huge for the infrequent visitor. One long weekend at a Holiday Inn Express might get you most of the way through one of their targeted promos for 50K points or free nights.

Zanis520

Yea, I know I have the option of owning/using a bunch of cards (and people do that) my issue is more that I don't use IHG any more. I have an Amex Hilton Surpass which is amazing because I can get 12x the points when I stay at any Hilton property (more than IHG offers for their stays), plus 6x on grocery/gas (more than IHG offers), plus they're integrated with Diners Club, PLUS they do a lot more promotions to get bonus points. I honestly just haven't really used IHG any more since joining Hilton.

I don't usually stay in hotels for one night, so I'm not sure that the one free night is a big plus for me, especially if I have to pay $50 for it. Most of the time with my travel I'm either on vacation, (so spending more than one night in a hotel and would rather earn HH points if I have to pay), or I'm traveling for work in which case the company pays for it, so again I'd rather stay Hilton and rack up the free HH points.

In terms of Chase cards I have a Sapphire Preferred and Freedom which I use both constantly. I've seen these targeted IHG offers for infrequent users floating around on the forum and other sites, but I never receive them even though I haven't used my IHG card in a long time. I guess my thinking was that if I don't ever use this card/program, there's no point in keeping it. I'd rather put all my time/effort/money into the Hilton program. Being able to send the IHG credit line into one of my other Chase accts though is the only real reason I'm considering this, since it won't affect my credit as much. I wouldn't just flat out cancel this as I know it's worse for your credit.

Guess I'll have to think about this more, my 3rd year of owning the card is coming up on Nov 3, so I wanted to make a decision before then. I know length of credit is a big factor with your credit score, so I thought it would be better to close it before it officially reaches that 3 year mark. I could be completely crazy though haha :/