Several questions- new cards, canceling old ones, etc.
Mar 11, 2014, 3:31 pm
#1
Original Poster
Join Date: Jun 2012
Location: Central Texas
Posts: 14
Several questions- new cards, canceling old ones, etc.
Hi everyone, I have a handful of questions and I hope it's appropriate to post them all in one big post.
Thanks to these forums, I've done some credit card stuff in the last couple years. Got a Chase Ultimate Rewards card, a Chase IHG card, I have three Southwest cards (companion pass for 2014-15!!), also just got a Starwood AMEX and an Citi American Airlines Mastercard.
I also just got my first application denied. US Bank Club Carlson card. I didn't do my homework and applied for it after having gotten four new cards in the last two months.
So now my questions are:
1. Does canceling cards do anything negative to you? I am maxed out with Chase (five different cards right now) so I figure I should probably cancel some and was also thinking of immediately canceling my AMEX and American Airlines card mentioned above once the points get posted. Is that pretty standard and/or an ok thing to do?
2. Regarding canceling, if you cancel say, the AMEX, would that affect their decision on whether or not to issue me a new card in a few months? How many times can you typically cancel and get new cards and how often can it be done?
3. With Ultimate Rewards are they (Chase, I guess) pretty lenient with letting you cancel and get a new one?
4. Does getting rejected on an application look bad or is it just one credit inquiry whether you get approved or rejected? In other words will my rejection have an effect on my future ability to get approved?
I guess my questions, now that I read them, seem to be about churning. I'm all maxed out for the most part but I still have some big purchases I need to do in the next few months so I can handle probably two more minimum spend requirements in the $3k range each. I've got tons of airline points so I'd prefer to get hotel points. I like the Ultimate Rewards since they transfer to hotel but also wouldn't mind more IGH or Starwood or a new chain.
Oh and speaking of hotels, in light of the fact that I just got four cards and one rejection in the last two months, do you think I could get approved for a Citi Hilton card right now or would they not look kindly on my recent history? I have the one new card with them but nothing else.
FWIW, I have credit of about 800. Thanks!
Thanks to these forums, I've done some credit card stuff in the last couple years. Got a Chase Ultimate Rewards card, a Chase IHG card, I have three Southwest cards (companion pass for 2014-15!!), also just got a Starwood AMEX and an Citi American Airlines Mastercard.
I also just got my first application denied. US Bank Club Carlson card. I didn't do my homework and applied for it after having gotten four new cards in the last two months.
So now my questions are:
1. Does canceling cards do anything negative to you? I am maxed out with Chase (five different cards right now) so I figure I should probably cancel some and was also thinking of immediately canceling my AMEX and American Airlines card mentioned above once the points get posted. Is that pretty standard and/or an ok thing to do?
2. Regarding canceling, if you cancel say, the AMEX, would that affect their decision on whether or not to issue me a new card in a few months? How many times can you typically cancel and get new cards and how often can it be done?
3. With Ultimate Rewards are they (Chase, I guess) pretty lenient with letting you cancel and get a new one?
4. Does getting rejected on an application look bad or is it just one credit inquiry whether you get approved or rejected? In other words will my rejection have an effect on my future ability to get approved?
I guess my questions, now that I read them, seem to be about churning. I'm all maxed out for the most part but I still have some big purchases I need to do in the next few months so I can handle probably two more minimum spend requirements in the $3k range each. I've got tons of airline points so I'd prefer to get hotel points. I like the Ultimate Rewards since they transfer to hotel but also wouldn't mind more IGH or Starwood or a new chain.
Oh and speaking of hotels, in light of the fact that I just got four cards and one rejection in the last two months, do you think I could get approved for a Citi Hilton card right now or would they not look kindly on my recent history? I have the one new card with them but nothing else.
FWIW, I have credit of about 800. Thanks!
Mar 12, 2014, 9:21 am
#2
Join Date: Feb 2013
Location: Tampa, FL
Posts: 304
1. Yes. Generally do not cancel a card until the annual fee is up, but more importantly to hold onto it and use as leverage. If you have 5 open cards with Chase, your chances at a 6th are slim, but you can offer to cancel a card when you have to call in about your next app.
2. Possibly. If they somehow "tag" you as a churner they will not like to do business with you. See 1.
3. UR is the rewards program. I wouldn't suggest canceling your UR account (nor do I even know if this is possible).
4. Possibly. There are occasions when being denied credit can look negatively to other lenders. Other times you get denied and it's just a wasted credit pull. It happens to everyone sooner or later, especially in the US Bank world
Getting more cards depends what's on your credit report right now. How many inquiries in the last year? In the last 6 months? If you manage this right, you can do 3 cards every 90-99 days for perpetuity.
2. Possibly. If they somehow "tag" you as a churner they will not like to do business with you. See 1.
3. UR is the rewards program. I wouldn't suggest canceling your UR account (nor do I even know if this is possible).
4. Possibly. There are occasions when being denied credit can look negatively to other lenders. Other times you get denied and it's just a wasted credit pull. It happens to everyone sooner or later, especially in the US Bank world
Getting more cards depends what's on your credit report right now. How many inquiries in the last year? In the last 6 months? If you manage this right, you can do 3 cards every 90-99 days for perpetuity.
Mar 15, 2014, 7:34 am
#3
Join Date: Jul 2013
Programs: AA,UA,BA,SPG,IHG Plat, HH Gold, CC Gold, UR, MR
Posts: 195
1. Yes, it negatively affects your Average age of accts. which is a decent size factor in your total FICO score. Especially with Chase, you should always keep as trade bait to receive a new card in the future.
2. Possibly. This varies among issuers. With AMEX, its commonly reported that you can receive same card and bonus 12 months after you CANCEL. With Citi, however, it is my opinion, at least with Aadvantage cards, that you should never cancel. When annual fee is getting close, simply call and they seem to always offer retention bonus equal to or much greater than annual fee. Plus the 10% miles back feature and you are eligible to receive same product again after 18-24 months even if you still have your first one open.
3. With Ultimate Rewards earning cards, you are better off getting the next one before you cancel existing card.
4. Possibly. usuallly just a waste of a credit pull, however
2. Possibly. This varies among issuers. With AMEX, its commonly reported that you can receive same card and bonus 12 months after you CANCEL. With Citi, however, it is my opinion, at least with Aadvantage cards, that you should never cancel. When annual fee is getting close, simply call and they seem to always offer retention bonus equal to or much greater than annual fee. Plus the 10% miles back feature and you are eligible to receive same product again after 18-24 months even if you still have your first one open.
3. With Ultimate Rewards earning cards, you are better off getting the next one before you cancel existing card.
4. Possibly. usuallly just a waste of a credit pull, however
Mar 15, 2014, 10:05 am
#4
Join Date: Mar 2014
Posts: 50
Closed card accounts aren't dropped off your record for 10 years as long as they are in good standing. Your average age will drop after ten years. By then hopefully you don't have so many new accounts that the dropped account won't drop you too much. If anything the immediate impact will be your credit utilization, and if you keep balances, your utilization may get too high and ding your score.
Also, using an inactive account as a trade chip might seem to work, but it's possible that closing the card beforehand would've enabled you to get the card anyways. Doesn't hurt to be on the safe side and hold cards but if it's a fee card just drop it. You can always work towards a new card when your situation improves, like higher score or increased income
Also, using an inactive account as a trade chip might seem to work, but it's possible that closing the card beforehand would've enabled you to get the card anyways. Doesn't hurt to be on the safe side and hold cards but if it's a fee card just drop it. You can always work towards a new card when your situation improves, like higher score or increased income