Credit Cards Question

[Eagle]

So I have several Credit Cards. I wonder if I should get rid of one or two? We pay off all our credit cards monthly (except the Ashley Furniture 0% offer).

1. CapitalOne (milleage, my oldest and dormant, no annual fee), 10k limit, $1 = 1 mile

2. Discover (cashback, 2nd oldest and up until this month primary, no annual fee), 10k limit, 5% cashback on select purchases throughout the year, 1% on everything else

3. Citicard AA advantage (milleage, 3rd oldest, $95 annual fee I've had waived for 2 years in a row) - 11k limit, considering putting this dormant we have 60k miles or so through this card with AA also give me group 1 status every time I fly and I fly often for work

4. Amazon (cashback, brand new, no annual fee) - 8k limit, we get 3% cash back on Amazon purchases. We've been purchasing diapers with Amazon for over 2 years... Should probably have dont this sooner yeah I know

Store Credit Cards:
5. Target, 5% off purcahses, 1k limit
6. Khol's, up to 30% off purchases, 1k limit
7. Ashley Furniture, 10k limit with about a 4k balance right now being paid off 0% interest 60 months, paying $100 a month

[Petunia 100]

Why get rid of them? I suggest instead you keep your eyes peeled for the sweet sign-up bonus offers and apply for more rewards cards.

Edit: Except I would close the one with the annual fee. Redeem your rewards first, of course.

[disneysteve]

I would close the one with the annual fee.

I think it really depends on what value you get from having the card. If a $95 annual fee allows you to earn hundreds of dollars in free travel each year, it may be worth keeping.

Our primary card is a Marriott Visa. We pay $85/year. In return, just for having the card, we get one "free" night every year at up to a category 5 hotel. That alone is worth at least $100 and up to about $250 depending on the hotel we choose for that free night, so we come out ahead even if we never use the card for anything else. But we do - a lot - and we earn several more free nights each year. I just charged DD's fall semester tuition and will get 1-2 free nights for that one charge.

So don't just automatically rule out cards with annual fees.

[Eagle]

Why get rid of them? I suggest instead you keep your eyes peeled for the sweet sign-up bonus offers and apply for more rewards cards.

Edit: Except I would close the one with the annual fee. Redeem your rewards first, of course.

I'm considering getting rid of my CapitalOne. I really see no need for it.

Did you read the part on Citicard AA advantage card where I had the company waive the fee the last 2 years? Also, it gives me Group 1 advantage. I travel for work about 1-2 a month. So that is very helpful to me. I also get free bags to check in with the card.

[Eagle]

I think it really depends on what value you get from having the card. If a $95 annual fee allows you to earn hundreds of dollars in free travel each year, it may be worth keeping.

Our primary card is a Marriott Visa. We pay $85/year. In return, just for having the card, we get one "free" night every year at up to a category 5 hotel. That alone is worth at least $100 and up to about $250 depending on the hotel we choose for that free night, so we come out ahead even if we never use the card for anything else. But we do - a lot - and we earn several more free nights each year. I just charged DD's fall semester tuition and will get 1-2 free nights for that one charge.

So don't just automatically rule out cards with annual fees.

I agree Steve. Good example. See my previous post about the Citi card value to me.

[HappySaver]

Eagle, I agree about closing the Capital One card. Four major cards is a bit high. I think three is ideal. And why bother with a dormant card when you have other, better cards?

When you cancel, they may try to scare you into staying because it's your oldest card. But don't worry. The history from that card stays on your record for 10 years. So, as long as you keep a couple of the other cards that you've had for a while, by the time that rolls around it won't be a factor.

Store cards are a bit of a red flag, but you don't have too many. If you shop regularly at Target and Kohl's, keep them. If not, close them. Close the Ashley card once you've paid off the balance. Avoid opening any more store cards.

[Eagle]

Eagle, I agree about closing the Capital One card. Four major cards is a bit high. I think three is ideal. And why bother with a dormant card when you have other, better cards?

When you cancel, they may try to scare you into staying because it's your oldest card. But don't worry. The history from that card stays on your record for 10 years. So, as long as you keep a couple of the other cards that you've had for a while, by the time that rolls around it won't be a factor.

Store cards are a bit of a red flag, but you don't have too many. If you shop regularly at Target and Kohl's, keep them. If not, close them. Close the Ashley card once you've paid off the balance. Avoid opening any more store cards.

Yeah, I've heard that before since it's my oldest card. However, I think I have enough credit history now to where it shouldn't affect it that bad. The 10 year mark is helpful too. Lol and I just checked realizing the CaptialOne Card I have expired earlier this year.

I have closed a Discover Card I had through Sam's club in the past. Didn't make sense to have 2 Discover cards and the Sam's coupons stunk. I also closed out my original CapitalOne Card I had since college a few years back. It had no rewards.

We probably shop at Target or Khol's every 2-3 months.

[Petunia 100]

I'm considering getting rid of my CapitalOne. I really see no need for it.

Did you read the part on Citicard AA advantage card where I had the company waive the fee the last 2 years? Also, it gives me Group 1 advantage. I travel for work about 1-2 a month. So that is very helpful to me. I also get free bags to check in with the card.

Have you seen Capital One's Quicksilver card promos? It pays 1.5% on everything. It is my "default" card, the one I use if I am not working on a sign-up bonus, or there is no rotating bonus for that particular spending category.

[snafu]

If you are uncomfortable with the number of cards cancel the dormant Capital One card. If you've the patience to do the bonus sign up program, you'll likely succeed with churning. It's all about what serves your needs best. We've quite a number of cards as each serves or has had it's own purpose and I'm too lazy to go through the whole procedure of formally cancelling a card.

[Eagle]

Have you seen Capital One's Quicksilver card promos? It pays 1.5% on everything. It is my "default" card, the one I use if I am not working on a sign-up bonus, or there is no rotating bonus for that particular spending category.

I think I'm going to stick with my Discover (5% on select categories throughout the year/ 1% on all purchases)/Amazon Visa (3% on Amazon/2% on gas stations, restaurants and drugs/1% on everything else) cards.

CapitalOne also seems to have the worst rewards packages from what I've seen.

[Eagle]

If you are uncomfortable with the number of cards cancel the dormant Capital One card. If you've the patience to do the bonus sign up program, you'll likely succeed with churning. It's all about what serves your needs best. We've quite a number of cards as each serves or has had it's own purpose and I'm too lazy to go through the whole procedure of formally cancelling a card.

The CapitalOne Card is actually expired and I didn't renew it. I'm going to find out when I opened the account and then decide if I will close it or leave it open. 4 major credit cards seems like a lot to me.

[Petunia 100]

I think I'm going to stick with my Discover (5% on select categories throughout the year/ 1% on all purchases)/Amazon Visa (3% on Amazon/2% on gas stations, restaurants and drugs/1% on everything else) cards.

CapitalOne also seems to have the worst rewards packages from what I've seen.

What do you dislike about the rewards? I think my Capital One has the best rewards redemption of any of my cards. There is no minimum, there is no rule to redeem only in some increment ($25 usually), and I can get a credit to my account in just a few days. I prefer cash to other rewards, so it works just fine for me.

[Eagle]

Have you seen Capital One's Quicksilver card promos? It pays 1.5% on everything. It is my "default" card, the one I use if I am not working on a sign-up bonus, or there is no rotating bonus for that particular spending category.

What do you dislike about the rewards? I think my Capital One has the best rewards redemption of any of my cards. There is no minimum, there is no rule to redeem only in some increment ($25 usually), and I can get a credit to my account in just a few days. I prefer cash to other rewards, so it works just fine for me.

Petunia after reviewing your post I decided to keep my CapitalOne and upgrade my card (for free) to the 1.5% cashback return program. I'm going to give it a try and see if the reward program has improved.

I wasn't particularly impressed with the milleage program. But 1.5% is better than 1% I can get through Discover.

I also was challenged to focus more on utility rather than my credit score or the number of cards I have. Particularly since we pay each of them off each month anyway.