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Personal Finances / Credit Cards and Consumer Debt
|Subject: Re: Switching Credit Cards||Date: 9/20/2012 9:01 PM|
|Author: mekong22||Number: 305985 of 311357|
Is the card you would switch to Amazon your oldest card? If it isn't, closing may not have any effect on your credit rating.
Just barely...Thanks for this comment. I've spent a bit of time researching some more online and realize that I had more than a few misconceptions.
I have three credit cards, none of which have ever kept a balance, I always pay them all in full when due. I really only use card #3 which has the best rewards. #1 and #2 I usually just make one small purchase each month to keep them active.
#1 Visa Opened Jan 2000 - This is the one I was hoping to switch to Amazon
#2 Discover Opened May 2000
#3 Visa Opened Dec 2003 - this is the one I use for most monthly purchases
So they've all been open for about a decade or more. Living in manhattan, I take the subway, so never had a car or auto loan. I'm at least 3-5 years away from purchasing a home and don't anticipate any other loans in the next couple of years. My credit score is good, in the high 700's.
The Amazon Visa card gives you 3% back on purchases on their website and 1-2% back on other charges, and I buy a lot directly from them (today found a 6 pack of Gillette shaving gel for $16 with free shipping...I'm not sure I could buy three bottles for that price here in nyc) so I anticipate continuing to buy a lot from Amazon, 3% back would be nice, not to mention the $50 sign on credit progmtl mentioned above.
Is this a no-brainer that I don't have much to lose by getting the Amazon card? If so, given the average age component AJ mentioned, it would probably be a bad idea to close the Card #1. I'm pretty financially responsible so I'm not worried about running up any balances just because I have more credit available. I would just got one more card to manage and make sure I pay on time. A few years from now, once the Amazon card has a few years behind it, maybe I close one of the two I don't use if I'm not anticipating any new upcoming borrowings.
Feel free to poke holes in my thinking, that's why I'm here. Really appreciate everyone taking the time to educate me.
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