partizanka

Can you please recommend the strategy for applying and closing cards?

I wanted to apply for:
1. Citi Premier 50K (for myself and my husband)
2. Barclay's UA 40K (for myself and my husband)
3. Southwest 50K (for my husband)
4. Delta 40K (for my husband)

I need to close:
1. Chase Southwest (mine by 01/2012)
2. AMEX Delta (mine by 01/2012)
3. Chase British Airways (husband's by 03/2012)
4. Chase Sapphire (mine by 04/2012)

A. Should I apply for all CC on the same day, so that there would be only one hard pull on my credit? Or this is myth?

B. Should I close all cards on the same day or it doesn't matter, because my credit will get a hit for each card, as I am decreasing my available credit?

C. Is my assumption correct - apply for CC first and then close the cards that I don't need, as my credit before will be higher than after closing cards?

I appreciate all the answers. I did try to use search, but could get answers to all of my questions, but if my questions were answered before I would appreciate the link.

philemer

A. You'll have 4 hard pulls no matter what since they are different banks.

B. Banks look at your total CL so you may not be approved for a new card if your current CL (credit line) to too high.

How about closing one acct. now, wait a couple weeks & then apply for one card (do this for both of you). Rinse, lather & repeat.

There is no "perfect" solution. Just use common sense.

C. Most people only see a few points drop in their FICO score when they close a card.

Zamboni Driver

The advantage to applying for all four cards on the same day is that the credit bureaus cannot see all of those credit pulls, increasing your chances for getting approved. Otherwise, if you are applying every few weeks, it may be a red flag that you need increasing amounts of credit, thus increasing your chance of getting denied.

I would suggest applying for all four cards on the same day (make sure at least 90 days have passed since the last application - judging from the dates you listed that seems to be OK). In the process of negotiating with Chase, be prepared to trade off the credit limit from the cards you want to close, or even offer to close the cards outright, in order to gain approval for the new card(s).

I would not cancel all of the cards at the same time. Instead, I'd apply for the new cards first, trade (in the case of Chase) as necessary, then gradually cancel the cards as the renewal date approaches. There is no risk or benefit to canceling them on the same day - there is no credit pull.

HTH and welcome (i srecno).

jjmiller69

Both Phil and Zamboni have very good ideas. Alot depends on you and what you're willing to take on your credit score. I like to open 1 card and wait 30 days and then start looking for another with a different Bank. I wait until the renewal charge comes up before I cancel any cards. Three reasons. 1. is if I'm going to be cancelling a card and Chase, Citi, or whom ever pends it I can always move the CL to the new card. 2. I want to be sure if another great deal comes along(Last years Cap1) I haven't frozen myself out of applying for it for 2-3 months. Many refusals are for to many inquiries or CL. And 3. I only charge $1500+ a month and the worse thing is to take out a card and not meet the spend. So take the best from everyone's info and adapt it to your needs, you can always change your plan later. It looks like you've been doing ok so far. Good luck and enjoy the trips, I know I do.

partizanka

Thanks to all. This is exactly what I was looking for.

World-Wide

Some solid advice here for future reference.

mike2200

+1 this has worked for us