I need a card with rewards but already have two credit cards...

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JFenz2
 
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I need a card with rewards but already have two credit cards...

Postby JFenz2 » Wed Jan 15, 2014 4:08 pm

Hello all,

Newbie here looking for advice. I've had the same Visa and Mastercard now for over 10 years. I have a >$20,000 limit on the Visa which I've had for around 10 years, and the mastercard has a $9,000 limit which I've had for 16 years.

Here is my dilemma... I've read that some of the things that help your credit rating are a credit card that you've maintained for a long period of time (ie: my Mastercard for 16 years) and a credit card with a relatively large credit line (ie: my Visa with >$20,000 limit). When I signed up for these two cards it was before the whole cash-back/rewards was popular; neither of these cards have cash-back or reward options. I feel like I'm losing money because of that.

My question is should I sign up for a 3rd credit card with a good rewards program? Or should I cancel one of my above mentioned credit cards and sign up for one with a rewards program? I don't like the idea of having 3 credit cards but everyone I know is making cash back on their purchases except for me.

Appreciate any advice!

-Josh


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djrez4
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Postby djrez4 » Wed Jan 15, 2014 4:54 pm

Which bank issues your current cards? If the bank has other credit card products, you may be able to convert your current cards to rewards cards. You will maintain your credit history - they wouldn't be new accounts - and you can take advantage of rewards without having to obtain a third card.

On the other hand, you would probably receive a decent limit on a new card. Nothing would prevent you from keeping the old cards open, to maintain credit history. You also wouldn't lose much, if anything, in the way of scores. Right now, you average age of account is about 13 years. If you applied for a brand new card, your average age of account would still be over 8 years - the highest range for credit scoring.

You have nothing to lose, either way, if you act. If you don't act, you'll always be 1-5% behind rewards cardholders.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]

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bisbicos
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Postby bisbicos » Wed Jan 15, 2014 5:42 pm

I agree with everything djrez4 said. If you do decide to apply for another credit card I would highly recommend the Fidelity Reward Amex. It gives 2% cash back on everything, its my go to card for most purchases.
Credit Cards
American Express: Fidelity Rewards (2% cash back) 9.5k
Zync NPSL
Discover: Discover More (5% rotating categories) 12k
Mastercard: Chase Freedom (5% rotating categories) 4.6k
Visa: Citi Forward (5x pts on restaurants) 15.7k
Citi Dividend (5% rotating categories) 5.6
Capital One Journey (1.25% cash back) 1.25k
BofA AAA (5% on gas) 2.5k
PenFed Platinum Rewards (5% on gas 3% groceries) 7.5k

Future Cards
US Bank Cash +
Chase Ink

takeshi
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Postby takeshi » Thu Jan 16, 2014 9:49 am

JFenz2 wrote:Here is my dilemma... I've read that some of the things that help your credit rating are a credit card that you've maintained for a long period of time (ie: my Mastercard for 16 years) and a credit card with a relatively large credit line (ie: my Visa with >$20,000 limit). When I signed up for these two cards it was before the whole cash-back/rewards was popular; neither of these cards have cash-back or reward options. I feel like I'm losing money because of that.

My question is should I sign up for a 3rd credit card with a good rewards program? Or should I cancel one of my above mentioned credit cards and sign up for one with a rewards program? I don't like the idea of having 3 credit cards but everyone I know is making cash back on their purchases except for me.

Consider everything that affects your credit and score. "Amounts owed" in the link below is really utilization:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Closing a $20K+ tradeline will have a significant impact on your utilization.

Add a rewards card unless you can do a product change on that card.

MemberSince99
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Postby MemberSince99 » Thu Jan 16, 2014 10:13 am

takeshi wrote:Closing a $20K+ tradeline will have a significant impact on your utilization.
.



Not if it's already 0 like I typically have. Then it has no impact at all.



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