topic Re: Close HSBC and Open Amex Blue Cash? Noah? Tuscani? in Credit Cards

Close HSBC and Open Amex Blue Cash? Noah? Tuscani?

Ausfarm — Tue, 23 Oct 2007 18:57:52 GMT

My FICO scores:

TU 733

EX 741

EQ 779

About 7-8 months ago, I opened an HSBC credit card w/ the intention of transferring a $7000 balance and paying the balance off over the year. (HSBC offered 0% for 12 mo.). Problem was that HSBC gave me a lower CL than I expected --only $3500. So, HSBC transferred about $3500 and $3500 remained on my other cc.

Currently, my utilization is at 21%. I'm wondering if it will be worth it to 1) open an Amex Blue Cash cc, 2) transfer the current balance of approx $3000 from HSBC to the Amex Blue Cash cc (I think they're offering 0% for 6 months, and 3) close the HSBC account?

I've heard that it's never a good idea to close a cc account, but I'm nervous about what the Amex Blue cc will do to the average length/history of my accounts (and thus to my credit scores). Then again, I'm not sure closing the HSBC credit card would offset the average length of my credit accounts? Don't closed accounts remain on your credit report for 10 years something?

I know that inquiry will ding my score(s), but I think that would be offset by the decrease in utilization.

Any thoughts? Is it worth the risk?

I have the following ccs:

BofA - 12000 limit

Cap1 - 2000 limit

HSBC - 3500 limit

Macys - 1900 limit

Other Dept store - 550 limit

I'm basically only carrying a balance on the HSBC card. The util on that card is awful (86%). Although, my overall util is okay. I think Amex would at least give me a 10k limit, taking util down to approx 30%.

I want at least 2 of my scores above 760 b/c I'm in the market for a mortgage and want the best possible rates.

NOTE: I've asked for CLI from HSBC and Cap1 - no go. Aargh!

Re: Close HSBC and Open Amex Blue Cash? Noah? Tuscani?

SonorityGenius — Tue, 23 Oct 2007 23:08:44 GMT

First - will you even get approved for Amex BlueCash?

Apply for it first, and find out, even though you have good scores they might just decide to do manually and just ymnv.

If you are in for a Mortgage, I strongly advice against opening any new cards - though your 86% utl is actually decreasing your score much worse than opening new card.. you listed several others that you already have, no luck in BT? CLI?

Dont close any cards yet. Although closed cards still report age, you will lose a TL..

Message Edited by SonorityGenius on 10-23-2007 04:08 PM

Re: Close HSBC and Open Amex Blue Cash? Noah? Tuscani?

Anonymous — Wed, 24 Oct 2007 01:53:55 GMT

I think Sonority has a point! Have you been pre approved by AMEX? Might want to go for a card you know you will be approved for then product change.

Re: Close HSBC and Open Amex Blue Cash? Noah? Tuscani?

fused — Wed, 24 Oct 2007 02:04:39 GMT

Ausfarm wrote:

My FICO scores:

TU 733

EX 741

EQ 779

About 7-8 months ago, I opened an HSBC credit card w/ the intention of transferring a $7000 balance and paying the balance off over the year. (HSBC offered 0% for 12 mo.). Problem was that HSBC gave me a lower CL than I expected --only $3500. So, HSBC transferred about $3500 and $3500 remained on my other cc.

Currently, my utilization is at 21%. I'm wondering if it will be worth it to 1) open an Amex Blue Cash cc, 2) transfer the current balance of approx $3000 from HSBC to the Amex Blue Cash cc (I think they're offering 0% for 6 months, and 3) close the HSBC account?

I've heard that it's never a good idea to close a cc account, but I'm nervous about what the Amex Blue cc will do to the average length/history of my accounts (and thus to my credit scores). Then again, I'm not sure closing the HSBC credit card would offset the average length of my credit accounts? Don't closed accounts remain on your credit report for 10 years something?

I know that inquiry will ding my score(s), but I think that would be offset by the decrease in utilization.

Any thoughts? Is it worth the risk?

I have the following ccs:

BofA - 12000 limit

Cap1 - 2000 limit

HSBC - 3500 limit

Macys - 1900 limit

Other Dept store - 550 limit

I'm basically only carrying a balance on the HSBC card. The util on that card is awful (86%). Although, my overall util is okay. I think Amex would at least give me a 10k limit, taking util down to approx 30%.

I want at least 2 of my scores above 760 b/c I'm in the market for a mortgage and want the best possible rates.

NOTE: I've asked for CLI from HSBC and Cap1 - no go. Aargh!

This is amazing! You have an HSBC card reporting util at 86% and your scores are this high. Your scores will get you best rates already. Do what saves you the most money!

Re: Close HSBC and Open Amex Blue Cash? Noah? Tuscani?

Ausfarm — Wed, 24 Oct 2007 04:47:50 GMT

Cap1 flat out refused a CLI (something about the type of card I have wasn't eligible for a CLI --it's not me, it's the type of card...)

HSBC claims to do their CLI reviews and offered to see if I'm eligible for CLI, but required a hard inquiry. I figure if I'm going to risk a hard inquiry, might as well go for Amex Blue - Cash.

Insofar as BTs are concerned, the only real possibility is BofA and their BT offer, well, sucks.

I haven't got preapproved for the Amex card. I know it's pretty presumptuous, but based on research I've done, I think there's a pretty good chance I would get approved. Of course, I could be wrong...

I don't know. The score simulation indicates a possible decrease of 3 points and increase of 20 points, but I don't really trust the score simulation. It's been wrong on me before. It may be safe to just do nothing.

Thanks for the responses. I really appreciate the input.

Re: Close HSBC and Open Amex Blue Cash? Noah? Tuscani?

SmartCookie — Wed, 24 Oct 2007 04:59:47 GMT

Consider WaMu... excellent BT offers and surprisingly easy to get approval with a decent credit line with at least mid range 600 scores. No annual fee etc, so it's the type of card that you can see keeping for the duration.

And instant approval online.

Re: Close HSBC and Open Amex Blue Cash? Noah? Tuscani?

Anonymous — Wed, 24 Oct 2007 06:06:04 GMT

I'd say go for it. I was just approved for the Blue (rewards, not cash) a few hours ago with EX 680.

Good luck!

Ausfarm wrote:

I haven't got preapproved for the Amex card. I know it's pretty presumptuous, but based on research I've done, I think there's a pretty good chance I would get approved. Of course, I could be wrong...

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