Million Mile Secrets reader Phil commented:
Should I cancel a card to “free up” credit with a given bank to increase my chances of getting a new card? Or should I hold onto the card to keep my relationship with the bank strong?
1. I have had the US Bank Lifemiles Visa for almost a year now. I don’t use it much, but they recently increased my limit from $6,000 to $8,000. Now I am considering applying for the US Bank Club Carlson Visa this month. I have 16 credit cards, and a relatively short credit history (I only had 1 credit card until 2 years ago, and got that first 1 in 2009), and an income that is not particularly impressive.
Do I cancel the Lifemiles Visa before applying for the Club Carlson Visa, or should I keep it?
And if I cancel it, should I wait a few weeks until after I pay the $75 and get 6,000 renewal points?
2. I currently have 3 AMEX credit cards (Blue Sky, Starwood Preferred Guest, and downgraded Delta SkyMiles, which has no fees or benefits), and just received a AMEX Premier Rewards Gold in March.
I would like to apply for 1 of the AMEX Hilton cards soon. Should I cancel 1 of my other AMEX cards first?
Excellent question, Phil! You have some decisions to make.
Should Phil Cancel Some Cards to Improve His Chances of Getting Approved for New Ones?
Let’s look at each bank separately to find Phil’s best strategy.