Credit card offer

[SRT4kid93]

So I logged into my app today with 3 new offers for 3 different cards.  However after calling customer service, they said these offers would be for an additional card, it would not be a product change/replacement for my current card. So, if I wanted to only have 1 account with them, I would have to accept the new card and then cancel my old one. However that would likely result in a hard inquiry and a new account to my credit report. So I don't want that.  

I know product changes exist but I'm not sure what to do with these offers, any advice ?

[GZG]

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@SRT4kid93 wrote:

So I logged into my app today with 3 new offers for 3 different cards.  However after calling customer service, they said these offers would be for an additional card, it would not be a product change/replacement for my current card. So, if I wanted to only have 1 account with them, I would have to accept the new card and then cancel my old one. However that would likely result in a hard inquiry and a new account to my credit report. So I don't want that.  

I know product changes exist but I'm not sure what to do with these offers, any advice ?

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I assume you're talking about credit one, so probably don't do anything to do with those offers

[SRT4kid93]

Yep credit one,

my plan right now is to wait 6-12 months and then add another card or two (hopefully an Amex, they declined me and part of the reason was too many inquiries/new accounts recently). Hence why I'm going to wait a little while and then try again. If I'm still declined I'll have to look elsewhere, perhaps citi bank.

anyways, once I add a 4th card I will cancel my credit one, I don't want to drop below 3 cards.  the offer was for a card far better than the one I have now I figured might as well upgrade and get the extra cash back. But nope, it's an additional account so they can charge more fees. Def don't want that. 

Oh well, like I said I'll only be with credit one for another 6 months or so. 

[Windchill92]

Garden and cruise with us and do AZEO a few months before applyinng to Amex again.

You'll be fine with 2 cards in case you decide to drop CreditOne early. For the longest time I had only 1 card with scores fluctuating between your TU & EQ.

[RedKhaos]

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@SRT4kid93 wrote:

...I don't want to drop below 3 cards.

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Ok but why? FICO counts closed accounts the same as open ones (for 10 years at least). It's been a while since I checked the FICO primer, but I'm pretty sure closed credit cards are counted as part of your total accounts calculation. I admit to bias against Credit One, but you already have Capital One and Chase cards so it should be fine to bounce them. Saves you hassle and fees.

[SRT4kid93]

@RedKhaos 

3 reasons

1) Mostly personal preference. I have worked hard on building my credit and my overall profile. And going from back down to 2 cards and losing points, part of my total credit limit and profile thickness feels like a step back for me. I would rather hold on to the creditone card for another 6 months/until I get another card. 

2) They have already waived my next 6 months of fees. So it costs me nothing to keep it.

3)  3 cards are ideal for FICO scoring. When I went from 2 to 3 cards I gained 8-13 points except for Experian which didn't care if I had 2 or 3 cards.

[RedKhaos]

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@SRT4kid93 wrote:

@RedKhaos 

3 reasons

1) Mostly personal preference. I have worked hard on building my credit and my overall profile. And going from back down to 2 cards and losing points, part of my total credit limit and profile thickness feels like a step back for me. I would rather hold on to the creditone card for another 6 months/until I get another card. 

2) They have already waived my next 6 months of fees. So it costs me nothing to keep it.

3)  3 cards are ideal for FICO scoring. When I went from 2 to 3 cards I gained 8-13 points except for Experian which didn't care if I had 2 or 3 cards.

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Points  noted for 1 and 2. I was going to ask if you were paying for the card. If the credit one card represents a chunk of your total credit limit, that could also be a consideration for now.

For FICO, the algorithm counts both open or closed accounts. So going from 2 to 3 does improve your score for having 3 accounts, but closing one of them does not drop you back to 2, you still have 3 accounts counted (at least for 10 years). Your vantage score might drop which is largely inconsequential.

[SRT4kid93]

@RedKhaos 

wait, so when they calculate the accounts with balances they include closed cards? 

[RedKhaos]

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@SRT4kid93 wrote:

@RedKhaos 

wait, so when they calculate the accounts with balances they include closed cards? 

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Well, yes and no assuming you're talking about the credit utilization calculation. Closed cards don't have or maybe technically have a credit limit of 0, so you do lose the credit limit when you close a card. As popular as AZEO is around this board, credit utilization has no memory currently, so holding onto an undesireable card just so you have that extra bit of credit limit is not something I'd suggest. But since you're not paying a fee, it's less of an issue.

There are separate calculations that looks at the total number of accounts and revolver accounts you have, their average and oldest age etc. All these will count closed credit cards the same as open ones for up to 10 years in the FICO models.  For example, there's a FICO score boost for having at least 3 revolver accounts as you noticed. But you don't lose that if you close one of your accounts.

[FicoMike0]

I think there is a score benefit to having up to three accounts "reporting paid as agreed". I think they have to be open. Closed accounts are still included in age metrics for 10 years. Three accounts gives you more to work with for azeo and avoiding all zero.