Credit Cards and Personal Credit?

[cfdjay]

There are some pretty incredible deals right now to open up new credit cards. I've read where people open a card, get the deal, then close the card but I've always heard that hurts your credit. Can someone enlighten me?

 

[thegrouse]

It is a rabbit hole for sure. I have had just about every credit card that gives a bonus multiple times over the last 10 years. You have to be disciplined and ensure you pay them off monthly so you do not accrue any fees. The annual fees are a killer so usually you will close them when the annual fee hits. I am guessing I have had over 40 cards and no issues with my credit score. Banks bet on you carrying a balance or paying a fee to keep the card. If you are disciplined you can earn a "rebate" of around %15 on everything you spend. Meaning if you spend 3k on a credit card you earn $500. Once you make that $500 move on to the next card and so on and so forth. I do not close the card until the annual fee is due a year later. There are a few cards I have kept through the years for various reasons. Of course if you cannot organically spend 3k in 3 months depending on your spending habits it may not work for you, or you would have to get creative. It may or may not be worth your time to do, but I have taken some nice trips and bought some things with all the bonuses I have earned over the last decade. There is a ton of info on the web about this and the rules are always changing so make sure you are reading current info.

 

[Mak335]

This is from the web:
"Multiple Hard Inquiries - When you open a credit card, it triggers a hard inquiry on your credit report. Closing a card immediately after opening it and reopening another card leads to two hard inquiries on your report within a short time. This can lead to your credit score dropping further."

I try not to get involved in those C.C. promotions/offers. I've had the same C.C's for +40yrs.
I suggest finding one that you'll be happy with and stick with it.