Q: I have a Citi Platinum Select Card and would like to apply for either the Citi Diamond Preferred Card or the Citi Dividend Card. Will already having a Citi Card hurt my chances of getting another Citi Card?
When your lender trots out a great new credit card offer, you don't have to miss out. However, maintaining multiple accounts with the same bank carries a few risks that might outweigh the rewards.
Most credit card issuers actually want you to maintain more than one account with them. Increasing your credit means increasing your loyalty, which is why so many banks offer such targeted rewards credit cards. I can understand why you'd want to diversify your accounts. Citi Platinum Select Visa Card is a great balance transfer credit card, but it offers relatively few perks beyond its lengthy introductory period. Meanwhile, Citi's been loading up the two cards you mentioned with plenty of bonuses:
Citi® Dividend Platinum Select® Visa® Card. With this offer you can earn $100 cash back after $500 in purchases within the first 3 months of account opening. This cash back credit card offers a rebate of 1 percent on your eligible purchases, plus bonus cash back of up to 5 percent for each quarter you enroll in seasonal categories that change throughout the year. The total cash back earned with this card is $300 per calendar year excluding the $100 cash back with this offer. For the third quarter of 2014 earn 5 percent cash back on eligible purchases within the Hilton Portfolio, car rental agencies, movie theaters and theme parks from 7/1/14 – 9/30/14. Enrollment each quarter is quick and easy. In many ways, Citi has set up their Dividend brand as a head-on competitor to the Discover Card, even matching some of that card's signup bonuses.
Citi® Diamond Preferred® Card. Citi's own version of the "black card" boasts its own 24/7 concierge service to help book your hotel rooms, flights and more. This premium credit card also includes Citi® Easy Deals℠ where you can earn Citi Easy Deals Points for the purchases you make with your card. Redeem your points for great online deals on name-brand merchandise, gift cards and even local deals. You can get what you want for less.
Your current credit score and risk profile may already qualify you for the Citi Diamond Preferred Card. If you are uncertain about your ability to qualify, you may benefit from being an existing customer, as Citi's algorithm may even be more forgiving of a lower credit score if they can access internal information about your income or payment history.
However, many consumers find that opening a second credit card with the same issuer often results in a lower credit limit than they expected. Each bank sets its own risk threshold, so your maximum credit line could end up diluted across multiple accounts. After you open your new credit card, talk to your lender's customer service team to see if you qualify for a re-balancing of your overall credit limit across both accounts.