Hello! I am a student, and since the day my family has come to the U.S. we have been working on our credit scores. For about one year, the only credit card was a preferred Visa from Wachovia with 7.9% fixed APR and no annual fee. After a year of making on time and in full payments, and a steady checking account with SunTrust and a savings one with ING, I decided to apply for a Big boy, such as the CITI Dividend Platinum (Not for students). Well, somehow I got it 9.24 variable APR. So I guess my question is, what should I do with the old card? Of course, I will keep it active, but the question is how much should I charge per month in order to help my credit? I have a recurring 3.95 monthly bill on it - is this enough or should I do more? I am planning on using CITI for everything now. Last Q, should I get any other cards or is this enough? Thanks in advance
The value to your improving scores, and improving offers, of your older card, is in: 1) the length of good credit history 2) the available credit, which reduces your utilization Using it, vs. using your new card, will probably have little effect on your scores directly. The only issue might be if your old card might offer you CL increases, better terms, or balance transfers at low rates. To what degree your usage pattern affects this, I have no idea. I have noticed that the best BT offers seem to come when I have an existing balance, but not near the limit. I suspect they are trying to lock in the balance at the higher payment rate, but of course if I am doing the BT, I pay off the balance first. I have also seen an improvement in BT terms when I have totally paid off a significant existing balance. Perhaps they see lost business from a low risk customer. Some banks seem to have much better terms than others. Some just don't seem to get that I am not stupid and have far better offers. Some only have low value teaser offers, requiring monthly purchases to keep the low rate on the old balance. They won't reward you for throwing money at them. Do what is in your best interest. They do.
