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Message
Switching Credit Cards (Mind Blown)
Posted on 4/8/16 at 8:07 am
Posted on 4/8/16 at 8:07 am
So I started playing the credit card game about three years ago after reading from some on here about all the benefits they've gotten. I just recently learned something that I'm not sure if this is widely known or if I got some clueless customer service lady, but it seems like it could be an absurd gamechanger.
I had signed up for a couple credit cards to get the new card bonuses/miles and now I've got 2-3 of them. This week I was looking to cancel one because the annual fee was no longer waived, and I was really only using 2 of them so I called the credit card company.
I wanted to discuss with them how I could cancel this line of credit without it negatively hurting my credit score as I've always read canceling a line of credit hurts your score (even if it was never delinquent or past-due which makes no sense but that's for a different thread).
When I told the lady this she goes "well instead of canceling the credit card you can just change it to another card that doesn't have an annual fee"...
Mind
Blown
I basically stammered my way into saying ok and she switched my account so now I have the same credit line with no annual fee.
Is this widely known? And if so, why doesn't everyone sign-up for next credit cards each year with the best bonuses and then change to non-annual fee cards? What am I missing? Did I just get lucky?
I had signed up for a couple credit cards to get the new card bonuses/miles and now I've got 2-3 of them. This week I was looking to cancel one because the annual fee was no longer waived, and I was really only using 2 of them so I called the credit card company.
I wanted to discuss with them how I could cancel this line of credit without it negatively hurting my credit score as I've always read canceling a line of credit hurts your score (even if it was never delinquent or past-due which makes no sense but that's for a different thread).
When I told the lady this she goes "well instead of canceling the credit card you can just change it to another card that doesn't have an annual fee"...
Mind
Blown
I basically stammered my way into saying ok and she switched my account so now I have the same credit line with no annual fee.
Is this widely known? And if so, why doesn't everyone sign-up for next credit cards each year with the best bonuses and then change to non-annual fee cards? What am I missing? Did I just get lucky?
6
Posted on 4/8/16 at 8:57 am to FootballNostradamus
The force is strong with this one
Posted on 4/8/16 at 8:59 am to FootballNostradamus
Its widely known.
Posted on 4/8/16 at 9:24 am to FootballNostradamus
quote:
why doesn't everyone sign-up for next credit cards each year with the best bonuses and then change to non-annual fee cards?
Because if you have good credit, cancelling a credit card will barely move the needle and if it does, so what. The benefits of good credit really don't change for anything over 700 or so.
Posted on 4/8/16 at 9:32 am to barry
quote:
The benefits of good credit really don't change for anything over 700 or so.
This is very wrong.
Agreed the needle won't move much for cancelling a credit card that has only been open for a short amount of time, but that's definitely a very inaccurate statement.
Posted on 4/8/16 at 9:44 am to FootballNostradamus
I do this all the time.
Always keep one non-annual fee card from each major bank. (Chase Freedom, Chase Ink Cash, etc).
Then when you cancel your Chase Ink business card with the annual fee, just ask them to move your available credit to your non-annual fee card.
I know for a fact this works with Chase, Barclays, Amex. Haven't gotten a chance to try BOA or Cap One yet.
Always keep one non-annual fee card from each major bank. (Chase Freedom, Chase Ink Cash, etc).
Then when you cancel your Chase Ink business card with the annual fee, just ask them to move your available credit to your non-annual fee card.
I know for a fact this works with Chase, Barclays, Amex. Haven't gotten a chance to try BOA or Cap One yet.
Posted on 4/8/16 at 10:03 am to TigerRob20
quote:
I do this all the time.
Always keep one non-annual fee card from each major bank. (Chase Freedom, Chase Ink Cash, etc).
Then when you cancel your Chase Ink business card with the annual fee, just ask them to move your available credit to your non-annual fee card.
I know for a fact this works with Chase, Barclays, Amex. Haven't gotten a chance to try BOA or Cap One yet.
Unreal.
This seems like such an obvious loophole, but I'm glad they don't notice. I'm gonna do some research on the best deals out there right now to figure out which new card I should apply for.
Posted on 4/8/16 at 10:10 am to FulshearTiger
quote:
but that's definitely a very inaccurate statement
Explain all these benefits that and 800 will get your that a 700-750 won't
Posted on 4/8/16 at 10:31 am to barry
you won't get a better interest rate but if your income is borderline, an 820 versus a 760 may get you approved for credit/a mortgage. Just depends
Posted on 4/8/16 at 10:45 am to FootballNostradamus
quote:
Unreal.
This seems like such an obvious loophole, but I'm glad they don't notice. I'm gonna do some research on the best deals out there right now to figure out which new card I should apply for.
I don't know why you think it is such a big deal haha. Anyway, post your spending habits and what you are looking for in terms of benefits in the credit card thread and I am sure you will get some great recommendations.
Posted on 4/8/16 at 11:21 am to AmeriKop45
quote:
I don't know why you think it is such a big deal
It just seems like they are getting the bonuses and the annual fee waived so that they have you on the hook with that card forever. When you can then switch before they start getting the annual fee, it just seems like an awesome loophole.
It would be like if you could get the first year of DirecTV with the billion channels but not have to sign the two year contract where they make their money back. I know credit card companies don't make their money off the annual fees, but again, just seems surprising.
Spending habits-wise, it'd be almost all groceries, gas and Amazon. I buy all my flights with my United card.
Posted on 4/8/16 at 11:24 am to FootballNostradamus
quote:
Its widely known.
This
Posted on 4/8/16 at 11:27 am to barry
Interest rate on a mortgage. There was absolutely a difference between 739 and 741 when we were applying. They had distinguished lines and one of them was 740.
Maybe you don't consider getting a lower interest rate at less points a benefit, but I do.
Maybe you don't consider getting a lower interest rate at less points a benefit, but I do.
This post was edited on 4/8/16 at 11:28 am
Posted on 4/8/16 at 3:31 pm to FootballNostradamus
Well a lot of the CCs charge you the annual fee when you sign up for the card but you are right there are some that waive it and technically you can cancel that card when the annual fee hits or just switch to a card without the fee. It isn't nearly as big a deal as you think or some incredible life hack worth posting about
This post was edited on 4/8/16 at 3:34 pm
Posted on 4/9/16 at 10:15 pm to FootballNostradamus
quote:thats because your FICO score doesn't really say how good you are about paying your bills, it's says how good are you about playing kissey-face with the bank. Guess who pays money to Fair Issac to keep these scores and info? Banks do. So, they will make damn sure to penalize you for cancelling a line of credit.
I've always read canceling a line of credit hurts your score (even if it was never delinquent or past-due which makes no sense but that's for a different thread
Eta: last time I did a credit score I think I was a 760. The two things that brought me down? I don't have a home mortgage , I cancel my CC too fast. Haha.
This post was edited on 4/9/16 at 10:17 pm
Posted on 4/10/16 at 9:20 am to crazycubes
Cancelling a newer credit card can actually make your score go up, assuming it was dragging you average age of credit down. It just depends.
Posted on 4/10/16 at 10:06 am to FootballNostradamus
quote:
"well instead of canceling the credit card you can just change it to another card that doesn't have an annual fee"...
Thats what I will end up doing in Nov when my CSP comes up for renewal. Don't want to lose the 120k points I have, but not ready to use them just yet. Called in this last Nov and argued with the rep as to why my annual fee is 125 when the only option for the card now carries a 95 fee. He said my contract stated 125 and I could just cancel and then reapply at the lower fee and get the 50k point offer again.
Also will need to cancel the two SW cards since I got all the points I wanted and am not going to pay the fee next year.
Posted on 4/11/16 at 8:29 am to FulshearTiger
This post was edited on 4/11/16 at 8:32 am
Posted on 4/11/16 at 10:37 am to Lsut81
quote:
Thats what I will end up doing in Nov when my CSP comes up for renewal. Don't want to lose the 120k points I have, but not ready to use them just yet. Called in this last Nov and argued with the rep as to why my annual fee is 125 when the only option for the card now carries a 95 fee. He said my contract stated 125 and I could just cancel and then reapply at the lower fee and get the 50k point offer again.
Let me know how this goes. I thought you had to wait 24 months or something before you could get the bonus points again with reapplying. i'd be tempted to do that.
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