Credit card questions

[IVIYTH0S]

So I'm still fairly newbish to credit cards still (only have two, the first of which is just about to hit 1 year) and I had some questions that some of you may be able to answer...

 

1st: I have an offer for an American Express that's tempting (Right now I have a CapitolOne-Mastercard and a DiscoverIt) with a free first year... Now if I were to cancel it right before it starts up the membership fee, would my credit rating take a hit?? (and if so, would it still be more beneficial to have it for that almost-year to build credit with, assuming I still come out higher than if I never got it)

 

2nd: Related to the nature of the first question, my CapitolOne has always has had an annual fee (I had no choice, it was my first card and nothing else would accept me) and I'm thinking about canceling it or switching to another one of their cards that still is a cashback card but doesn't have an annual fee. Would it still hurt my credit score if I switched cards within the same company??

 

Thanks for any help ya'll can give.

[MercuryDoun]

Cancelling any card is going to negatively effect your credit, no matter how long or how short you've had it. That's just a fact of credit, regardless of how much or how little credit you have established the cancelling of a card is a fairly minor dent though. In my experience the annual fees are never worth it, so i agree with your desire to get rid of that annual fee.

 

Are you aware that most American Express cards are not actually credit cards, they are usually charge cards. Suffice to say, you are usually required to pay the full balance every month, this is something you'll want to double check on the AMex offer. Maybe you already knew and that's what you want, i just find that most people don't realize the difference between a credit card and a charge card. And they are pretty major differences.

 

As for #2, I'm honestly not sure, but I'd bet that you can't transfer card types within the company. But that question is better asked to Capital one, You might find that they can quite simply reissue the card under a different type, but again, I'm going to say they probably wont do that.

 

Hope I helped!

[IVIYTH0S]

Cancelling any card is going to negatively effect your credit, no matter how long or how short you've had it. That's just a fact of credit, regardless of how much or how little credit you have established the cancelling of a card is a fairly minor dent though. In my experience the annual fees are never worth it, so i agree with your desire to get rid of that annual fee.

 

Are you aware that most American Express cards are not actually credit cards, they are usually charge cards. Suffice to say, you are usually required to pay the full balance every month, this is something you'll want to double check on the AMex offer. Maybe you already knew and that's what you want, i just find that most people don't realize the difference between a credit card and a charge card. And they are pretty major differences.

 

As for #2, I'm honestly not sure, but I'd bet that you can't transfer card types within the company. But that question is better asked to Capital one, You might find that they can quite simply reissue the card under a different type, but again, I'm going to say they probably wont do that.

 

Hope I helped!

So you're in agreement that I'd have more to gain then lose by possibly getting the Amex card?? (I don't mind it being a charge card, that's how I treat my credit cards anyway)

 

Yeah I figure I'll just give them a call and see. I'm guessing I'd have to cancel my current Cap1 card and apply for the better one which *hopefully* my slightly better credit will allow

[Waco]

Don't bother with a charge card like AmEx IMHO.

[IVIYTH0S]

Don't bother with a charge card like AmEx IMHO.

Thine reason being? I'm just trying to raise my credit up and I can't be too picky with cards yet.

[Wesstron]

As far as the AMEX is concerned I suggest that you read the details of the offer and the contract that comes with it fully, then ask Q if you don't get something, and decide after that. Offers that are really good to pass on often come with a trap or two lol. Those guys will never ever think about your well-being but their own pockets lol

 

About annual fees, it really depends if you are a big spender or not. I have a Visa GOLD whatever and the annual fees are offset by the amount of reward points I'm getting on it. Points I use for travel and hotels mostly. If you don't spend on the card that much, just get rid of it and apply for a 0 fee one... no one has a perfect credit anyway lol

[Black64]

Also note that AMEX is harder to use because it cost stores and vendors more to use it(so most don't even accept it). I would avoid AMEX.

[Onion]

Still don't understand the point in credit cards... If you want something, get it when you can afford it. The only useful aspect of credit is for a house, and maybe a car.

[SpeedCrazy]

Still don't understand the point in credit cards... If you want something, get it when you can afford it. The only useful aspect of credit is for a house, and maybe a car.

+ 1

I have never had a credit card. I pay cash for everything.(debit card for big stuff, but that is basically cash). Its an easy concept, can't afford it? Don't buy it. Now i realize thats probably not feasible when buying a house, but I'm not there yet.

[bp9801]

 

Don't bother with a charge card like AmEx IMHO.

Thine reason being? I'm just trying to raise my credit up and I can't be too picky with cards yet.

 

 

So long as you keep making payments on time then your credit score will go up. Adding more cards really defeats the purpose, since it's just more payments you have to make each month. Stick to one card, pay it off each month (or whatever you can afford to), and your credit score will increase.

[cjloki]

 

Still don't understand the point in credit cards... If you want something, get it when you can afford it. The only useful aspect of credit is for a house, and maybe a car.

+ 1

I have never had a credit card. I pay cash for everything.(debit card for big stuff, but that is basically cash). Its an easy concept, can't afford it? Don't buy it. Now i realize thats probably not feasible when buying a house, but I'm not there yet.

 

+1 ....and yet in today's world "some credit" is a necessity, (houses, cars, emergencies, etc)....if a person can resist the temptation to over use their credit, and pay off the purchases on time and responsibly then credit can be a benefit,...if not, credit can quickly become an anchor that will drag 'em down...my experience with capital one is that they're ok for establishing some credit, but nothing else,...a few small purchases here and there, pay it off quickly and your credit limit and scores will increase and then ditch them asap...amex forget about it, get rid of them, ....ivi, if you are able to show responsibility with your credit then in about 6 months credit card companies will be beating down your door, junk mail, junk phone calls, "special offers" will come pouring in...

[Onion]

 

 

Dot bother with a charge card like AmEx IMHO.

Thine reason being? I'm just trying to raise my credit up and I can't be too picky with cards yet.

 

 

So long as you keep making payments on time then your credit score will go up. Adding more cards really defeats the purpose, since it's just more payments you have to make each month. Stick to one card, pay it off each month (or whatever you can afford to), and your credit score will increase.

 

 

Iirc two is better because it raises your score faster.