I had my 1st credit card in Nov 07 and my 2nd one in March 08. Should i get a 3rd one now?

Question

i have a student credit card (bank of america, $1500 credit line) opened in Nov 2007.

i also have a credit card (capitalone, $500 credit line) opened in March 2008.

I used them a lot, never went above the limit, always paying the balance off on time. So i guess my credit history is improving.

But now i would like to get points rewards. So what would be the best option? Open a new account? Close my student credit card and open a new account with bank of america?

Thanks for your advices!!

Answer 1

I wouldn't.  They say 2 is the key number of cards you should have.  Having too many can actually hurt your credit as well (weird I know) It is considered "busy credit"  and also remember every time you fill out an application and they check your credit rating and report....an inquiry brings your score down a bit as well.   Call and ask you credit card company if they have points award program (most do) and see if you can sign up for that.

Answer 2

A third credit card will lower your credit score.  Unfortunately, so does cancelling a credit card.  In your situation it would be best to cancel one of your cards and take the credit hit.  Then open a new account with the card you want and use it wisely.  The hit you took from cancelling the old one will go away in a short time.

Answer 3

If you are paying your credit cards off in full with no minimum payments, you only need one card.  Be very careful not to get to the point that you can't pay off your credit card.  If you have saved enough cash, you don't need a good credit rating.  Remember The borrower becomes the slave of the lender (Proverbs).  Talk radio Dave Ramsey says that cash is king, and debt is dumb.  The new status symbol is a paid off home mortagage vs the BMW.

Answer 4

keep what you have, and open a new account don't give up your cards.

Answer 5

NO the more credit card the bigger the payment

Answer 6

I would keep both accounts open to keep your score up. You don't really need to open up a new one. I would call Capital One and ask if they can change your card to a rewards card. If they want to keep your business, they will mostly accommodate to your needs. I did this with American Express and it worked like a charm!

Answer 7

I would never recommend opening credit card debt or any other to raise credit ratings / scores.

Assuming the credit you have does report to the credit bureaus, why open more?

It would appear you are fiscally responsible in repaying in full vs. carrying the debt --- but more credit available can increase the risk of over indebting oneself.

Believe me, I've seen many young credit seekers overwhelmed by the desire to buy buy buy - and having the means to do so (credit cards) - well, let's just say they sink themselves before they realize it.

Bankruptcy is rampant and the number of 20ish year olds that have filed is sad.

Continue to be the responsible debtor you are now, but don't overdo, nor overdo the temptation.

Answer 8

I suggest closing one, and opening another. Don't get too many. I know you feel responsible, and you sound like you are, but imagine all three getting stolen.. You are F'ed. But anyway I think 2 is enough. I think pick a shop you are ALWAYS AT, and get their credit card. BUT the one you can use anywhere. Bestbuy has a mastercard, and you can use it at bestbuy for 4 points per 1 dollar, for purchases made at bestbuy, and 1 point per 1 dollar for purchases else where. So use it to buy gas, and you will really rack up on points!! So thats what I think. I can't wait to get the bestbuy one. So get one you can use anywhere, but earn double or triple points for your favorite store. You should do that because you can use it for emergencies, and outside the store, but when you go to buy things you love, well there ya go! GOOD Luck!!