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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Drop one card, open a better one? Date:  8/29/2013  6:45 PM
Author:  aj485 Number:  307243 of 312858

I'm positive he could get a card at a better interest rate that doesn't charge him an annual fee. Is it better to get the other card first and then drop the Key Bank card, or drop the card and try and get another card after?

Why, if he's not using the Key Bank card, would he be using the new card? Is he going to quit using one of his other cards?

If he wants to get a new card for rewards, a better interest rate (although I'm not sure why that matters since he has no balance on the Key Bank card) or for some other reason, he should go ahead and apply for a new card.

If he wants to drop the Key Bank card because he doesn't want to pay the annual fee, then he should drop that.

Depending on the reported balances on all of his cards, he may want to keep the Key Bank card until he gets the new card, to keep his utilization (utilization = reported balances/available credit) lower, and potentially increase his score. But if his utilization is below 10% even without counting the Key Bank card as available credit, he probably doesn't even have to do that - he could close the Key Bank card at any time.

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