08-15-2014 07:31 AM - edited 08-15-2014 07:37 AM
Maybe this is the wrong location to post this question, if so, mods, please move!
My soon-to-be-DW was about to do an app-o-rama to maximize our wedding spend next month. She was totally on board, but now that it's almost time to app, she is playing devil's advocate and using things I told her against the idea of applying for new credit (go figure lol).
I told her once "never close a credit card that's in good standing" (but I left out the part about, "as long as there is no AF"). All the cards we're looking at are CCs to acquire airline miles for future vacations. Citi AA, Barclays Arrival+, Chase United etc. All of them have the AF waived the 1st year. She wants proof that cancelling them in 1 year, prior to the AF posting, won't hurt her credit score in 10 years. She wants written proof, not my logical explanation.
Any help? Any other articles (TPG or MMS) that may help her understand that App-o-ramas and applying for new credit in general, only impact your credit score negatively for the short term, but ultimately, as long as credit is used smart and correctly, it boosts your score...
FWIW, she has 2 CCs, only with Chase, so her credit portfolio is very weak and undiversified. She likes Chase, I've tried to explain that its best to spread out your credit. She wants proof lol
08-15-2014 07:44 AM
My 2 cents, is that you would be burning bridges down the line. If you cancel after one year to get the free miles, they will realize that. It will not effect your credit. but it could irritate Barclay's etc.. for future TL's
08-15-2014 07:50 AM
I respectfully disagree. There wouldnt be so many people in this "game" if that were the case. Half the people out there cancel CCs before the AF hits, and as long as you dont cancel immediately after getting the bonus, instead waiting 8-10 months, most don't have a problem with this, as long as you dont abuse the system and continually do this. This is a one time thing, but even if it weren't, most banks wouldnt even care (thats why these boards exist).
Anyways, I am not asking for anyone to play devil's advocate, just looking for any articles or links as proof to my questions
08-16-2014 08:56 PM - edited 08-16-2014 08:59 PM
All you can really do in this situation is lay out all the pros and the cons of doing this application spree. Short-term effects and the long-term efftect of such an action. A relationship is 50/50 and as long as you're both communicating 100% about everything; that's all that matters in the end regardless of what decision is made as a result. It sounds like you're in a really good relationship where both parties are aware of credit in general.
Keep communicating and whatever she decides, support her irregardless if you may think it's a bad decision in your mind. At least you laid everything out on the table and tried your best to show the whole picture. I am sorry I cannot provide the articles that you want but there's plenty out there showing both sides of the picture. Congratulations to both of you! I wish you nothing but a successful, long life together!
Also you said she has just two revolving lines of credit? I think I have seen a few posts here and maybe creditboards where some people have hit 800s with just 2-3 cards reporting. And some of them didn't even have installment loans. Diversifying your portfolio is great but make sure there's a great reason to do so. Otherwise just her 2 cards, clean reports, great payment history and a long history will get her to the 800s.