Want to.. cancel CC and open a new one. which do i do first?

slim150 · 07:40 AM

Here is my situation:

I am 26. I have only 1 credit card that I opened in 2001 (the oldest active thing on my credit report) that was one of those student $500 cards that now is up to a $17,500 credit limit.

I never keep a balance and always pay it off every month. I never thought about changing credit cards because I heard that its good to show a long credit history on your report.

But heres the thing.. the interest rate is super high, no rewards, and they are implementing new rules that in 2010 I will get an annual fee. Normally I don't care about the interest rate because I never carry a balance, but I am tired of them and their b.s. ways.

Question:
I want to open a new card to earn points and etc. I don't know if I should apply for a card and then cancel my first CC. Or cancel my CC first and then go looking for a card.

DoingHomework · 04:15 PM

Apply first then cancel.

Mogul of Pineapples · 03:41 PM

How much is the annual fee going to be? It may be worth keeping simply because you have such a good history with them and it sounds like you don't have many other lines of established credit.

07:40 AM	#1
slim150 Green Member Join Date: Dec 2009 Location: florida Posts: 1	Want to.. cancel CC and open a new one. which do i do first? Here is my situation: I am 26. I have only 1 credit card that I opened in 2001 (the oldest active thing on my credit report) that was one of those student $500 cards that now is up to a $17,500 credit limit. I never keep a balance and always pay it off every month. I never thought about changing credit cards because I heard that its good to show a long credit history on your report. But heres the thing.. the interest rate is super high, no rewards, and they are implementing new rules that in 2010 I will get an annual fee. Normally I don't care about the interest rate because I never carry a balance, but I am tired of them and their b.s. ways. Question: I want to open a new card to earn points and etc. I don't know if I should apply for a card and then cancel my first CC. Or cancel my CC first and then go looking for a card.

03:41 PM	#3
Mogul of Pineapples Centurion Member Join Date: Jun 2008 Location: Where the smog from the 101 freeway coats my home's windows... Posts: 634	How much is the annual fee going to be? It may be worth keeping simply because you have such a good history with them and it sounds like you don't have many other lines of established credit. __________________ “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” -Warren Buffett Current Cards: American Express: Blue Cash, Simply Cash Bank of America: Visa Financial Rewards Platinum Plus Chase: Rewards Visa, Amazon Visa Discover: More Current Everyday Card: American Express Blue Cash

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04:15 PM	#2
DoingHomework Centurion Member Join Date: Sep 2009 Location: Arizona Posts: 113	Apply first then cancel.