Author Topic: New Cash Back Credit Card or Convert Current Credit Card?  (Read 2763 times)

apfroggy0408

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New Cash Back Credit Card or Convert Current Credit Card?
« on: June 25, 2014, 06:12:06 AM »
Hey guys

New day, new question.

Tired of not really getting any useful reward from my credit card should have done something like this a long time ago.

Anyways I bank through Bank of America and can change my current credit card to a 3%/2%/1% gas/groceries/everything card and will just have to wait til it comes in.

OR

They're offering 100$ to apply for a new credit card with the same cash back rewards.

I'm curious which is the smart way to go including how my credit is affected in the long run.

If I get a new one do I continue to use the old one on occasion? I know not to cancel it, that's it though.

Edit: If there are better options than getting a new Bank of America card I'm all ears.
« Last Edit: June 25, 2014, 06:30:16 AM by apfroggy0408 »

Another Reader

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Re: New Cash Back Credit Card or Convert Current Credit Card?
« Reply #1 on: June 25, 2014, 07:06:19 AM »
I applied for and received the new BofA card for the $100 bonus.  Then I converted the old card.  Although a new card and number were issued, so far it appears the account maintains the history under the old number and the history is reported under the new number. 

Don't know if it's still available, but the Chase Freedom card was offering a $200 bonus.  Only 1% base rewards, but rotating 5% rewards.  Gasoline is up for the July through September quarter.  There are a couple of threads here on card churning and rewards. 

Philociraptor

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Re: New Cash Back Credit Card or Convert Current Credit Card?
« Reply #2 on: June 25, 2014, 07:19:08 AM »
AMEX Blue Cash Preferred is 6% groceries, 3% gas and department stores, 1% everything else with a $95 yearly fee; we pay for the fee within 3 months and the rest is profit. Best everyday card IMO.

Chase Freedom has a $200 initial spend reward and 5% rotating categories each quarter.  No yearly fee, Visa network.

apfroggy0408

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Re: New Cash Back Credit Card or Convert Current Credit Card?
« Reply #3 on: June 25, 2014, 07:55:11 AM »
AMEX Blue Cash Preferred is 6% groceries, 3% gas and department stores, 1% everything else with a $95 yearly fee; we pay for the fee within 3 months and the rest is profit. Best everyday card IMO.

Chase Freedom has a $200 initial spend reward and 5% rotating categories each quarter.  No yearly fee, Visa network.

Just got the AMEX card, might switch my current BoA CC to cash back, possibly apply for Chase Freedom.

Brian Fellows

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Re: New Cash Back Credit Card or Convert Current Credit Card?
« Reply #4 on: June 25, 2014, 09:39:27 AM »
To answer your questions given what you ACTUALLY did instead of talking about your hypotheticals:

Long term, keeping the old card and getting new ones will HELP.  You'll have more available credit, so (assuming you're not going to USE more credit), your (credit used)/(credit available) will be lower, so you'll have a better credit score.

Most credit card issuers won't close your account if you're not using the credit card, but if it sets your mind at ease you can ask Bank of America.  However as someone above said, converting it to a better card will allow it to keep the same account age, so that's not going to hurt your or anything.

So everything you're doing is positive or neutral.  The only caveat is that mortgage lenders often look at the amount of inquiries on your credit IN ADDITION TO YOUR OVERALL SCORE.  So if you're applying for a mortgage in a year or two, more inquiries=bad, even if you've got a higher credit score than you would have.

There are no publicly known metrics on that exactly, and I'm sure each institution is better.  So in conclusion, I think you're only helping yourself out here.

milesdividendmd

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Re: New Cash Back Credit Card or Convert Current Credit Card?
« Reply #5 on: June 25, 2014, 09:49:25 AM »
I would go Chase Sapphire preferred. You get 40,000 Chase ultimate rewards points after hitting your minimum spend requirements, which can be redeemed for $400 cash back.

There is an annual fee that is waived for the first year. (You can just downgrade the card next year and not pay any fees.)

Incidentally, here is my favorite resource for the best current credit card offers:

http://frequentmiler.boardingarea.com/best-credit-card-sign-up-offers/