Should I Cancel My Citi Credit Card?

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4 posts
Squid7085
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Should I Cancel My Citi Credit Card?

Postby Squid7085 » Wed Feb 23, 2011 1:24 am

Long time Lurker, I finally got an account so I could post this. :)

I will keep it simple. I am 21, and recently got out of college and am starting the wondrous Adult life. Part of that is financial planning, and a big part of that is my Credit Report. As a matter of fact, I might just be obsessed with it.

Here is the deal, I only had one BofA Visa that I used regularly, along with a few older cards that never carry balances, mostly there because they are so old. Anyways, I started getting slammed with Pre-Approved offers in the mail and I started realizing that I could apply for a new card that would give me 0% APR and better rewards than I get now. I chose the Chase Freedom applied and waited, they denied me. So I applied for a Citi credit card that didn't have 12-month 0% APR. I was instantly approved for that card with a $4,300 limit. That made me wonder why Chase denied me, it was answered the next day when they called me. It turns out I put my monthly income, not my Yearly income. :beat: They approved me instantly for a $4,000 credit line.

Now, I don't plan to carry large balances on either or these cards, I paid off the BofA Visa, and plan to only use the Chase card. I got a similar limit with both the cards, so there is no reason to use the Citi card with 11.99% over the Chase one with 0%. My question is, should I close it? The big issue on my credit is age, and throwing two brand new cards on my report obviously dings that "Average." I haven't even activated the Citi credit card, I like the idea that it ad's a large amount of unused credit, but I hate that is hurts my credit age. I built my score up to the 740ish range, I would hate to see it drop significantly again. :(


Keysmasher
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Postby Keysmasher » Thu Feb 24, 2011 1:12 am

I would suggest that you just activate it and occasionally charge something to it every month (to keep it active) as the extra $4,000 adds to your overall available credit (good for your scores!). Your AAoA already dropped when you got the Freedom card anyways.

Squid7085
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Postby Squid7085 » Thu Feb 24, 2011 3:49 pm

Wouldn't having two brand new cards though kind of be a double whammy on my Average age? I mean I guess what is more important, Average Age, or amount of credit. My Credit Utilization is already around 9% before those two new cards.

sdfinch
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Postby sdfinch » Thu Feb 24, 2011 4:00 pm

Activate both new cards now that you have qualified for them and congrats also. New cards are sometimes hard to get now. Do not close down your old accounts. Your older accounts are the beginning of your credit history even thought you're young. If you close those older accounts, your credit history will shorten to next card in line. That can and will decrease your score for sure. Your older cards you have to make sure to use them every few months to keep revolving movement on it. Just by a pizza or tank of gas and keep balance under $20.00 so it's easy to pay off. The bank can close your account from inactivity. Take advantage of balance transfer offers also. Just make sure if you do a b/t to have the funds deposited into your personal checking acct or promo check written to you. The reason why is the papper trail. You do not want to have bank paying bank for your b/t. It's better if it comes from your checking acct. Papper trail so you paying off cards and not the bank.

I hope that helps !



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