May 30
i have a college credit card… im about to graduate… and there are other cards with better rates… rewards and benifits…
im currently with citibank… i know canceling and signing new applications will lower my credit…
so i’ve had this credit card for 2 years now… can i get have the bank change the type of credit card with out canceling my account or signing up for a new one?
Golden Rule:
Never close your oldest credit card account.
Length of credit history is 15% of your FICO.
Ask them to change your terms, but if they don’t,
I would get a new card that offers cash back rewards.
There are two great ones.
One is Penfed with 5% cash back on gas, and another one is Schwab Visa with 2% cash back.
(Fidelity also has a 2% cash back, but you have to have an account with certain minimums).
Keep in mind that it is completely INSANE to get a cash back rewards card if you are PAYING INTEREST.
High rewards cards have higher interest rates.
Best for your credit score is to use your card and never pay interest by paying in full each month.
A new card dings your credit by a couple of points (not worth worrying about it).
Also, the slight ding only lasts about 6 months.
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Totally up to Citibank. But you do ask a great question. One of the characteristics that is in every scorecard is “average age of trades”. The longer the better. A new card would cut your average age of trades to “one year” versus two. On the other hand, if you got another card, you line amounts in total would go up. As long as you didn’t use more credit, your NFRB (net fraction revolving burden) will go down. Your numerator (what you owe) stays the same while the denominator (your available credit) gets bigger. But if Citi does change something for you — make sure you keep the SAME account number. The big trick — let the cards work for you — don’t wind up working for the cards.