Card 1: 1.5K limit 4 years old, 8.9 APR fixed, no CLI, no BT fee
Card 2: 2K limit, just received, 12.99 APR, 0% for 1 year, 3% BT fee, CLI every 3 mos as long as I don't violate any terms.
Would you combine the cards to keep the terms on Card 1 or Card 2?
Yes I've called numerous times (back door number included) and they always tell me what a good customer I am and to keep doing what I'm doing and they do periodic reviews. After 4 years I've given up. I think it may have something to do with the fixed APR. They don't want me to have it both ways....low APR and high limit. This new card gets auto increases as long as I don't go over the limit and pay on time every 3 months. I don't want to have to TLs with the same creditor.
If you don't want two cards with the same creditor, why apply for a second card and why would an issurer single out you from obtaining both a low APR and high limits?
What you need to disclose is whether or not the 4 year old card is the oldest card. If it is the oldest, keep it. If it isn't, close it.
I would take card 2 and it's not really close, unless you have charges already on the card that you can't pay off before the 0% expires, and I can't really imagine that is the case given the credit limit on the card. Interest rate only impacts you if you plan to carry a balance. In this economic climate, I really think carrying a balance that you can't immediately pay off if necessary is a mistake, because it puts the cc company in the position of power. If you can pay off and cancel the card at any time, you can't be held hostage when a company decides to hike your interest rate without warning, or to double/triple your minimum payment, or cut your credit limit to just barely above what you owe, hurting your score, leaving you open to ratejacking and making it harder for you to get credit to replace what you have lost.
Just my perspective.
Thanks for the advice. I am starting to lean more towards card two. You are right, the APR is irrelevant unless you plan to carry a balance.
I am not happy since Citi Bank has raised my credit limit without my requesting the credit increase and they also hiked up my interest rate. I have a balance that I am able to pay off but I was angry and called them and they said that although I have an excellent credit history with them that "times are tough for the banks". I am disgusted that a bank would hold itself out as a victim. I have a choice of accepting their 19.9% interest rate or I can cancel my card when it expires. Since that card is my oldest credit card (6 years) I do not want to cancel it so what I will do is pay off the balance ($191.00) and just use it for very small purchases to be paid off each month. Any advice?