My newest credit card

April 20, 2010 at 1:31 pm (credit cards) ()

Today I opened a new credit card with the intention of it being my main credit card. It is to replace my Citibank card, which I will need to close within the next year (due to opting out of a rate hike – I need to close it before they do, which would have a more negative impact on my credit score). When I close Citibank, I expect a hit to my credit rating for 2 reasons: I’ll be losing over $16K of available credit, and I’ll be closing a card I’ve had for 19 years (all my others are upstarts from very recently, which will significantly reduce the average age of my available credit).

I opened a credit card with my credit union for several reasons. I wanted to get a new “main” card open and operating as quickly as possible, so that it has time to mature and become less new (the longer you have credit established, the better; new credit means you may have pending debts/payments you need to make, and is viewed very poorly). Another major reason I wanted one within the same institution as my checking account is for ease of paying it off. I absolutely hate making a purchase on a credit card and then having to push that expense to the following month when the payment hits – it screws with my budget! Plus, the rate I’m getting is quite excellent: 6.9%. The card I’m getting will be at $10K to start. Not too bad.

I’m going to see how long before this has an effect on my credit karma rating. I’m going to make an effort to check every day until something shows up (and I’ll of course post that info here).

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