Cancelling Credit Cards

[Anonymous]

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@Anonymous wrote:

Basically my situation is that, I have an airline that my entire family takes, so I have that airline specific mileage card. (Korean Air Skypass Visa)

But my family recently decided to switch over to Asiana so I'm considering getting their airline card. 

Not sure what the best course of action here is.

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I would probably try applying for the Asiana card first, since it seems like it is worthwhile for you to have it. Because your overall limits are fairly low though, I think I would still try to keep a card with US Bank (one without an AF and hopefully some benefits you like), and transfer the limit from this one over prior to closing. Assuming that both are approved, you'd get the Asiana card you need and then also have a nice US Bank card with a high limit to help your utilization.

Just my opinion though, I'm sure others will chime in! In any case, do whatever seems best to you!

[Anonymous]

I didn't even consider that. Thank you for the advice. 

[Anonymous]

You're welcome! 

Note that the two inquires and two new lines of credit will hurt your score a bit, so if you really want to limit that you could just go for the Asiana card and close the US Bank one, that way it's just one inquiry and new line. But if you can find a no AF US Bank card with some benefits you like or could use, then I'd say it's worth it personally.

Best of luck whatever you decide!

[Anonymous]

That is risky. Applying for another card to replace the one you already have. You could get declined, get a lower limit if approved. Plus your credit history is short. How much is the annual fee? I think you're better off leaving well enough alone by keeping your existing card and letting your file get more history.

[Anonymous]

It would be a 50 dollar fee for a card that would give me no benefits as I am looking to change my main airline.

[Anonymous]

I say apply & get the card you want first.  Then go ahead & close the US Bank card.  The 7 months isn't that long & it won't affect your score much.  Just in the beginning.  The HP for the card you want will drop it a bit also.  But it should bounce back.  

[Anonymous]

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@Anonymous wrote:

My overall score hovers in the 720-730 range.

The card is maybe 7 months old, but it is my oldest credit card. (My card history doesn't date very far.)

The limit is 2000 to my overall 4000, but I would apply for another card before cancelling this one. 

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Your credit file is only 7 months old and this card is your oldest card. A $50 fee is peanuts. I would keep the card, pay a few small bills with it each month like your cellphone, etc, and then app for the card you want.

With 7 months credit history and a high credit limit of $4000, there are lots of lenders that want to see more history and higher limits before granting you credit. 

Lots of us on here move too fast. That is a good credit card you have. There is no reason why you can't keep it to make your profile stronger, AND attempt to get  the other card. Over time that card being your first will grow limit wise and that will help you.

Just be patient IMO. You're doing good with your credit but you need more history and a fatter file.

[Anonymous]

The problem is that the card will essentially give me no benefits. The main reason for the switch is that my main airline is changing and I no longer have a use for the miles. Is the 50 still worth it in my case?

[Anonymous]

This is what I would do in this situation (based off the info you have given, OP):

1. App for the card you truly want now.

2. Wait to cancel the current card til just before the annual fee hits. Use it for small charges & pay in full til then. It's free additional history for your thin file. 

[Anonymous]

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@Anonymous wrote:
The problem is that the card will essentially give me no benefits. The main reason for the switch is that my main airline is changing and I no longer have a use for the miles. Is the 50 still worth it in my case?

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I guess what I am trying to say is every credit card many of us have does not exist because we can physically profit from it. We are taking what we can get approved for, putting some usage on that card, and keeping the card open for the sheer ability to enhance our credit files.

For example, I don't need a J Crew card, or my Overstock card or several of the cards I opened for my mom and wife. But I used those cards and we utilized the authorized user options to build more solid credit for all of us. The cards that we don't really need helped and continue to help us get better cards with higher limits.

if you had a credit profile with 25 accounts on it, 7 years of credit history, a775 Fico score,$200,000 in lines of credit,10 of your cards with $10,000-$15,000 limits, and you had one Visa card with a $5000 limit that you felt you didn't need anymore, I would say close it and app for the card you want. You have nothing to lose.

But with a short credit history any prime major credit card you can get should be cherished, some spendiisng put on it, and a push for higher limits because the future of your credit growth is very important.

In other words having a solid thick credit file with as high a score as possible is very valuable to have in life. A 7 month old file with a $2000 limit Visa card from a prime lender can dramatically help you in the long run. You can still apply for the Asiana card but keep what you have too.

I guess what I am saying IMO that you seem to be more focused on what a specific credit card can do for you than the long term value of having impeccable credit.