New to Credit Card in USA

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giansera
 
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Location: New York

New to Credit Card in USA

Postby giansera » Thu Aug 28, 2014 7:56 pm

Hi guys, great forum!

I've been living in the US for about 5 years now. I have a Bank of America account and I got my credit card a couple of years ago. I got it so I can build a credit history.

I got a BofA cash rewards credit card, I use it every month and pay regularly in time.

Since a few months I started to receive many offers from other banks, like Chase, Citibank, Capital One and lately the Amex Everyday.

I was wondering if I should get another card, like the Amex, with no annual fee.

Will this help to build my credit? I didn't understand if it is better to have more then one card.

Also, is it true that once you got a credit card you should never closed it?

Thank you very much in advance!


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PlyrStar93
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Postby PlyrStar93 » Thu Aug 28, 2014 9:19 pm

giansera wrote:I was wondering if I should get another card, like the Amex, with no annual fee.

If you feel like you want better rewards, different payment networks, building relationships with various financial institutions and so on, why not?

giansera wrote:Will this help to build my credit? I didn't understand if it is better to have more then one card.

Temporarily getting another account means additional hard inquiry and reduced AAoA which both hurt credit (score). However in the long run your history does become more robust--you have several accounts and can manage them wisely, which is most lenders want to see. Also when having multiple aged accounts, if you apply for another one your AAoA could suffer less.

There is no need to apply for many accounts at the same time though--this shows high risk to lenders as they would think you are desperate to credit.

giansera wrote:Also, is it true that once you got a credit card you should never closed it?

This is FALSE.
Citi Forward Visa $5000 10/2012 | American Express Blue Cash Everyday $8000 2/2014 | Discover it $7000 5/2014
Chase Freedom Visa Signature $7000 6/2014 | Citi ThankYou Premier Visa Signature $5000 1/2015
All EMV.

giansera
 
Posts: 2
Joined: Thu Aug 28, 2014 7:52 pm
Location: New York

Postby giansera » Fri Aug 29, 2014 10:13 am

Awesome, thanks a lot!

Since I travel frequently, I just called BofA and change my card from Cash Rewards to BofA Travel Rewards.

I'm get the new Amex Everyday then, it seems a good deal for travelers, all those miles to redeem! :)

Thanks

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CarefulBuilder14
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Postby CarefulBuilder14 » Fri Aug 29, 2014 9:37 pm

Using those two cards should provide a simple way to get decent rewards on your spending.

As far as whether it is best to never close an account:

Your credit report, which is a sort of 'transcript' of credit cards, mortgages, car loans, and so forth will continue to show your good history with a card for a few years after you close it. So the harm is pretty minor, since you'll be building history with a new card.

It is usually best to close a card with an annual fee unless it has really great rewards like a lot of cash back or special perks like airline or hotel upgrades. It sounds like you might be best with cards that have moderately good rewards but no annual fees.

If a card has no annual fee but it's not going to be one you use much, then people have different opinions. Some people like to keep it open to show a more impressive history. I would not want the extra work of tracking it ans would close such a card.

So continue to be responsible with your cards - it sounds like you've got ones that suit you well!.
Wallet: Prestige CSP SchwabPlat Freedom It Hyatt SallieMae AAPlat
SD: Arrival BrooksBros BCE ED IHG
Letting new accounts cool off since May
Really not sure what I'll add next or when



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