Should I merge my credit cards into one account?
Guest: creditbuilder
Post subject: Should I merge my credit cards into one account?
Posted: Mon Apr 03, 2006 11:32 am
My oldest credit card is a capital one with no rewards, a low limit, and a high interest rate. I don't want to get rid of the card for scoring reasons, but as it is, the card is useless to me. I asked capital one if they could switch my account to a prestige mastercard, and they said they couldn't do that, I would have to apply for it as a second card. If I did that, and then merged the accounts, how would it show up on my credit report. Would it show as one card with the age of account being the age of the first card; or would I have the first card show as closed and the second card show as recently opened?
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Guest: stevejk
Credit Expert (100+ Posts)
Posted: Mon Apr 03, 2006 12:44 pm
IMHO, as long as there is no annual fee and no annual fee for inactivity, leave it alone and apply for a better card if you have a high enough score. The advantage of leaving the oldest card alone, using it occasionally just to keep it active, gives you a longer credit history as you get better cards along the way.
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Guest: beyond platinum
Credit Expert (100+ Posts)
Posted: Tue Apr 04, 2006 1:25 am
creditbuilder wrote:
If I did that, and then merged the accounts, how would it show up on my credit report. Would it show as one card with the age of account being the age of the first card; or would I have the first card show as closed and the second card show as recently opened?
What you are talking about is reallocating your limits. If you opened the new prestige card, then your old account would close and the limit would transfer to the prestige card.
Don't make decisions based solely on your credit score. You also have to take into consideration how much usage you’re going to get out of the card in the future when deciding to close the old card. Also remember that even if you do decide to close the old account, it will still be reported on your credit report.
_________________
"The most incomprehensible thing about the world is that it is comprehensible." --Einstein
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Should I merge my credit cards into one account?
Posted: Mon Apr 03, 2006 11:32 am
My oldest credit card is a capital one with no rewards, a low limit, and a high interest rate. I don't want to get rid of the card for scoring reasons, but as it is, the card is useless to me. I asked capital one if they could switch my account to a prestige mastercard, and they said they couldn't do that, I would have to apply for it as a second card. If I did that, and then merged the accounts, how would it show up on my credit report. Would it show as one card with the age of account being the age of the first card; or would I have the first card show as closed and the second card show as recently opened?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: stevejk
Credit Expert (100+ Posts)
Posted: Mon Apr 03, 2006 12:44 pm
IMHO, as long as there is no annual fee and no annual fee for inactivity, leave it alone and apply for a better card if you have a high enough score. The advantage of leaving the oldest card alone, using it occasionally just to keep it active, gives you a longer credit history as you get better cards along the way.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: beyond platinum
Credit Expert (100+ Posts)
Posted: Tue Apr 04, 2006 1:25 am
creditbuilder wrote:
If I did that, and then merged the accounts, how would it show up on my credit report. Would it show as one card with the age of account being the age of the first card; or would I have the first card show as closed and the second card show as recently opened?
What you are talking about is reallocating your limits. If you opened the new prestige card, then your old account would close and the limit would transfer to the prestige card.
Don't make decisions based solely on your credit score. You also have to take into consideration how much usage you’re going to get out of the card in the future when deciding to close the old card. Also remember that even if you do decide to close the old account, it will still be reported on your credit report.
_________________
"The most incomprehensible thing about the world is that it is comprehensible." --Einstein
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 5:02 PM
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