Which decision will be better or my credit score?

If you search for "credit rating" you'll find a bunch of threads.

In any case, I wouldn't try to micro-manage your credit rating unless you're about to make a big purchase. Keep the accounts that make sense and close those that don't. If you're planning on buying a house soon, it's worth doing some credit cleanup in the year or two beforehand. Otherwise, your credit rating doesn't mean a hill of beans if you use credit wisely in the first place. If you charge only what you can pay off every month on a handful of accounts, you don't need much credit, and you'll actually be doing what you need to do to get a good rating.

 

Why do you need so many credit cards? Have a couple with higher limits and be done.

Or

Open a line of credit at the bank for $30,000 and be done.

 

Why not just do both? Keep the card with a zero balance. Your credit score should increase because length of account is taken into equation.

Apply for your credit union card and just use that instead.

That's my advice, whatever it's worth.

 

Having store credit cards is kind of silly. I know somebody with six or seven gas cards--what? Why?

Long ago I consolidated my credit cards to an AMEX, Visa (through my bank), then a separate Visa and MasterCard. Four cards. High credit limits. I only use one - the AMEX (Amex Blue Cash - I got 5% off on my $100 grocery bill today and another 5% off the gas I bought).

Now I remember in college I had a JCPenny card and a Structure card, those are long gone. Resist the temptation to open a Gap card, Express card, etc. which they always ask when in clothing stores. You don't need to affiliate with anybody. Have a few regular ones, carry two or three of them, keep track of them, know what your credit limits are and your APR rates are (if you carry a balance). Just keep that stance and use them properly and you're in control, and soon you will have an 800+ credit rating.

Store cards may send you discounts, etc. The problem is, they're incentivizing you to spend. Your purchase decisions should be based internally on what you want, want you need, and your current financial situation. If saving 10% results in you spending $200 you shouldn't have, then you were influenced to spend more than what you would have otherwise which is just silly.

There are credit cards today that actually have an impact financially - I'm not a fan of "Airline Miles" cards (though they're not so bad), but I can't deny the effectiveness of 0.5/1.0 and 1.5/5.0% cash back on everything I buy with the AMEX - it doesn't influence my spending but still trims 5% of gas and groceries and 1.5% off everything else, and it's automatic. And gas and groceries are two of my biggest recurring expenses each month.

Nix the card and don't look back. Get an American Express that does something for you.

--Mike

 

Yikes! Probably best to kill the card.

-R

 

Same thing I said on another thread a week or two ago:
Just get 2 cards, but have the CLOSING date be 2 weeks apart on them.
For example, if you charge something today, charge it on the card that just had a closing date, and not the one coming up next. If you charge on one that had the billing date close yesterday, use that one, that way you get an extra month before you even get billed, and then 25 days on top of that once you get the bill.

On the other hand, if you charged on a card today that had a billing closing date of tomorrow, you will get the bill in 3-4 days, and then 25 days to pay it, NOT a month and 25 days.

Did I explain that right ?

PS - I think a lot of you would be shocked to see your credit history. I check mine, the first time I checked it, they had CC's on there I've NEVER had, but somehow the places that send them blindly to me - the ones I cut up and have NEVER used - some of those are on there. 'AE' and 'Discover' mainly, but also 5 or 6 Visa's, MC's. Getting them off of my report was a nightmare.
No big deal you say ?
It is when folks want to know why I have 12 CC's with credit limits of between $10,000 and $20,000 each - why do I need $150,000 of plastic credit ? That sends up red flags. Seven of those cards I never took/accepted, the others were closed accounts from 20 years ago.
I have two CC's, that's all I need.