rsudhakar948 wrote: I would like to know if it is a good idea to close the 1.5 year old bank of BankAmericard Cash Rewards Credit Card. As i am done with 0 % APR with this card. I would like to pay of the all the due amount to BOA and close the credit card . Once i close the BankAmericard Cash Rewards Card, i would like to wait for 3 months and then apply for new BankAmericard Cash Rewards Credit Card with Fresh Application.
Depends on what you specifically mean by "good".
From a scoring perspective it is generally recommended to have at least 2-3 cards. Closing a card decreases your available credit and has an impact on your revolving utilization. You can do the math to determine the impact. Opening a new account incurs a hit from the hard pull and the hit your AAoA but the newly available credit will also have an impact. You can also calculate the impact to your AAoA from adding a new account. What we can't tell you is how many points you'll gain or lose from all this as it's not just a matter of these actions but of your credit profile and how these actions impact your profile. Some people look to avoid any hits to their score but you can't make an omelette without breaking some eggs.
From the creditor's perspective it's a matter of how much the creditor is against churning. I doubt you'd run into an issue doing this but if you establish a patter of doing this, especially with creditors that are heavily against churning then you may run into some difficulty. I can't speak to BofA but you can probably find prior discussion on this and other credit discussion sites.
rsudhakar948 wrote:What i would like to accomplish is , i would like to make use of 0% APR over and over.
I can understand why but it's not really sustainable in the long run. At 20% utilization you probably won't have a problem getting approved but approvals are a low bar and you can easily slide downhill with this approach. You need to lower those balances and to avoid carrying them. Make sure you're budgeting and sticking to your budget. Granted, that's easy for me to say and I have no idea what your situation or finances are like.
MemberSince99 wrote:I just shake my head. I guess this terrorist of credit (who should be tortured for his crimes against ALL lenders) will burn in hell for all eternity if he churns a card....thanks for the chuckle to start my morning.
No one said the OP was a terrorist. That's your hyperbole and melodrama. What the OP is doing is churning. Whether or not that's an issue from a practical standpoint all depends on the creditor and their stance on churning. I'm not arguing that anti-churn creditors are right or wrong -- just pointing out the reality of the situation.