Getting another credit card

[Esanders323]

Hi,

I graduated from college Dec. 2014, and got my first credit card (Chase Freedom). I use the credit card for everything, and then I immediately pay it off, just so I can get points. I currently have $250 from cash back on my Chase Freedom after having it for 10 months. Now I'm beginning to want to get a second credit card for better rewards. The credit card I'm thinking of getting is the Citi Double Cash Card which gives 2% cash back.

Would having 2 credit cards hurt my credit score significantly?
I'm not concerned about overspending as that has never been an issue for me, and I don't think it will be.

Thanks

[cooliemae]

It shouldn't impact your score too much. Your credit score is going to be hit harder by multiple credit inquiries in a short amount of time.

I have close to 15 credit cards (for the bonuses) and have a credit score of 800+.

[Jluke]

I currently have $250 from cash back on my Chase Freedom after having it for 10 months.

What are you saving the rewards for? I just apply my rewards each month to the credit card so I owe less when I pay it off each month.

is there a better use of the rewards?

[snafu]

Do you plan to use the new CC just for the higher rewards and no longer use the 1st CC? Are there any wiggly restrictions on the new card like 2% on gas, groceries, RX, or specific days like Sunday - Tues etc?

I hope you understand that you need to run the credit cycle if you aim to have a high FICO type credit score. That means you wait until the charges post on your statement and pay the account in full. If you are paying for charged items before they post, you are not giving credit grantors the opportunity to evaluate credit worthiness. Paying immediately[before charges post] isn't part of their criteria. Individuals seeking to significantly increase their score likely ask for an increase in credit limit to make the usage ratio look even better.

While I'm delighted you understand about building and tracking your credit score, why are you worried about your day-to-day score? It' usually only a factor when applying for a major loan like buying a car, applying for insurance, changing employment etc.

[cooliemae]

I generally take my rewards and invest them in my Lending Club Account...earning more money and really taking no risk with my own money.

[greenskeeper]

one credit card paid in full each month is plenty credit for me.

[hemoglobinRed]

Reply to thine post

I'd recommend a second card for a different reason: having a backup. A card is a really convenient method of payment. Until it isn't available. So I keep multiple cards (both debit and credit) because friends and I have been affected by the following.

• Sometimes cards get left at restaurants or bars.
• Sometimes wallets or purses or stolen. (I leave a 2nd card at home)
• Sometimes stores like Target get hacked. So cards are cancelled as a preventative measure.
• I like having a dedicated card the gas station where skimmers could be installed.
• Sometimes there is identity theft.

This was just driven home again because my roommate/tenant is temporarily broke while he gets some identity theft sorted out.

[Jovanny]

It should not have an impact on your credit score as long as you make the payments regularly and in time.

[Eagle]

Hi,

I graduated from college Dec. 2014, and got my first credit card (Chase Freedom). I use the credit card for everything, and then I immediately pay it off, just so I can get points. I currently have $250 from cash back on my Chase Freedom after having it for 10 months. Now I'm beginning to want to get a second credit card for better rewards. The credit card I'm thinking of getting is the Citi Double Cash Card which gives 2% cash back.

Would having 2 credit cards hurt my credit score significantly?
I'm not concerned about overspending as that has never been an issue for me, and I don't think it will be.

Thanks

Probably wouldn't hurt your score... How much extra do you think you spent this year to earn that 2% at $250?

[fhaloanboise]

What are you saving the rewards for? I just apply my rewards each month to the credit card so I owe less when I pay it off each month.

is there a better use of the rewards?

It should not have an impact on your credit score as long as you make the payments regularly and in time.

Exactly True...

[jamies]

That's a good question which happens with all of us. It shouldn't impact your score too much. Your credit score is going to be hit harder by multiple credit inquiries in a short amount of time.