02-22-2014 02:51 PM
I'm new here so I apologize in advance for my ignorance.
I have a few related questions, but first some quick background information:
I'm 28 and single, my income will be about $65,000 in 2014, but will rise dramatically to about $175,000 in 2015, and then will increase by approximately $10-15K each year after that for at least two or three years (I'm a lawyer and we get paid on a rigidly defined scale so I can project these figures in advance with confidence). I have about $60K in student loan debt. My credit scores right now are: Equifax: 750, Experian: 757, Transunion: 743. No negative events. I currently have a Bank of America Rewards Platinum Plus Visa card with a $7,500 limit and no annual fee, and I was just approved for a Chase Sapphire Preferred card (no annual fee in Year 1; $95 annual fee thereafter) with a $13,000 "credit access line."
Question 1: is my Bank of America card a good one? Does anyone have experience with this card? Note that it's not a "Cash Rewards" or "Travel Rewards" card, just a "Rewards" card.
Question 2: my initial inclination was to close the account associated with the Bank of America card once I get the Sapphire Preferred card, but having done a little more research, it seems that might not be the right move. The BofA card has no annual fee and it is by far my longest-existing line of credit (it's been my only credit card for nearly five years). From my research, it seems that canceling my longest-existing line of credit would be a bad move for my credit score. So should I close the account or not? And if not, am I permitted to use the card once a year just to keep it active but to use my Sapphire Preferred card 99 percent of the time? Is that for some reason a bad idea or not allowed?
Question 3: the Sapphire Preferred is, it seems, a phenomenal rewards card, especially since I travel internationally fairly frequently. So I think I'm good there. I assume my next credit card should be one that has a good cash back system. The AmEx Blue Cash Everyday and Blue Cash Preferred jump out at me because I think I'd like to have an AmEx, but is there another card I should look into with great cash back? Relatedly, because I just got the Sapphire Preferred card and because my income will be increasing dramatically next year, should I wait until 2015 to apply for whatever cash back card I ultimately settle on?
Thank you very much for any help you guys can give me. Apologies again for sounding like an idiot.
02-22-2014 03:21 PM
Grats on your CSP, keep the BoA around you need it for AAoA, there are no other cards around that time to help you. Im not an expert on either one of these banks rewards cards others will have to chime in. Welcome to the forum
02-22-2014 03:28 PM
Congrats on your approval. Keep the BofA card and if your travel a lot internationally you might want to consider PC to the Travel Rewards Signature Visa (also no FTF like Chase) and where the metal card does not work have a back up... or if BofA can PC to Merill+? Just keep it and see which cards you can PC to that would be more useful in the future.
02-22-2014 03:33 PM
Congrats! Welcome to the forum IMHO keep your BoA card and make a small purchase every 3 moths to keep it active. Thanks for sharing.
02-22-2014 03:40 PM
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