Is it time for me to get another Credit Card?

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Topic Author
bricepoole
Posts: 12
Joined: Tue Oct 27, 2020 6:06 pm

Is it time for me to get another Credit Card?

Post by bricepoole »

I currently have 2 credit cards. I have had my first credit card for about a year. I just recently was approved for a 2nd card, but I am only using this card to buy an engagement ring. Once the amount is paid off in 6 months I was considering cancelling that card. I am only able to use this card at the specific company who issued it to me.

So question 1, should I cancel this card since I cannot use it as a normal credit card or should I just keep it with a zero balance?

I want to get a 2nd normal credit card since I finally understand how credit utilization works and having multiple sources of revolving credit is good.

So question 2, how long should I wait before applying for a 2nd normal credit card since I was just recently approved for the jewelry credit card that I may or may not keep after 6 months?

Thank you in advance for advice
bloom2708
Posts: 8359
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Is it time for me to get another Credit Card?

Post by bloom2708 »

I would wait until the jewelry loan is paid.

Learn to use credit for rewards only. If you don’t need it, can pay the balance off at any time, then you can use them as a tool to vacuum rewards.

Credit with revolving balances is dangerous.
"We are here to provoke thoughtfulness, not agree with you." Unknown Boglehead
Topic Author
bricepoole
Posts: 12
Joined: Tue Oct 27, 2020 6:06 pm

Re: Is it time for me to get another Credit Card?

Post by bricepoole »

bloom2708 wrote: Tue Oct 27, 2020 6:35 pm I would wait until the jewelry loan is paid.

Learn to use credit for rewards only. If you don’t need it, can pay the balance off at any time, then you can use them as a tool to vacuum rewards.

Credit with revolving balances is dangerous.
My next card will be a rewards card, but my current card is just a starter card with no rewards. So either way I am going to have to get another card for rewards. My goal is to have 2 or 3 active cards for rewards, but mostly to build credit.
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jfn111
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Joined: Fri Nov 08, 2013 10:42 pm
Location: Minnesota

Re: Is it time for me to get another Credit Card?

Post by jfn111 »

I would keep the jewelry store card open, it will help with average age of accounts and your total available credit. I would go ahead and try for the rewards card now so all the hard pulls age off together. Make sure you try the credit card pre-approval site so you don't waste a hard pull on a card you can't get.
Topic Author
bricepoole
Posts: 12
Joined: Tue Oct 27, 2020 6:06 pm

Re: Is it time for me to get another Credit Card?

Post by bricepoole »

jfn111 wrote: Tue Oct 27, 2020 7:19 pm I would keep the jewelry store card open, it will help with average age of accounts and your total available credit. I would go ahead and try for the rewards card now so all the hard pulls age off together. Make sure you try the credit card pre-approval site so you don't waste a hard pull on a card you can't get.
So I should keep the jewelry card open even if I cannot use it at all? I will definitely do a pre approval before I get my next card.
myleaf
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Joined: Tue Sep 20, 2016 10:55 am

Re: Is it time for me to get another Credit Card?

Post by myleaf »

you may want to check out credit karma. You can monitor your credit score and i believe the site lets you know your chances of getting approved for various credit cards.
"Never met an electron I did not like"
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jfn111
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Joined: Fri Nov 08, 2013 10:42 pm
Location: Minnesota

Re: Is it time for me to get another Credit Card?

Post by jfn111 »

bricepoole wrote: Tue Oct 27, 2020 7:29 pm
jfn111 wrote: Tue Oct 27, 2020 7:19 pm I would keep the jewelry store card open, it will help with average age of accounts and your total available credit. I would go ahead and try for the rewards card now so all the hard pulls age off together. Make sure you try the credit card pre-approval site so you don't waste a hard pull on a card you can't get.
So I should keep the jewelry card open even if I cannot use it at all? I will definitely do a pre approval before I get my next card.
As long as there is no annual fee then no harm in keeping it open. They may close it for you after a few years of non use but it will have served it's purpose.
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