credit cards and credit reports

Factual Questions
1

I don’t make much money, but manage things well and have always had good credit (no late payments, only student loan debt). I have a credit card that I have kept in good standing for almost 10 years, using it for almost everything and paying it off in full every month. No home purchase yet, but looking to in the next 3-5 years so I want to keep my credit rating looking good.

I am thinking about switching to another credit card because I like the rewards program better than the one I am with now. My question is, would this have any appreciable affect on the rating of my overall credit? Does it look better to stay with one particular account for long periods of time, or does no one in the credit rating business care if we periodically switch from one accout to another (assuming that doesn’t become a habit)? If I do switch to using another card for everything, would it be better for my credit rating to keep the previous account open or to close it?

Thanks in advance for the help!

2

An old acount like this is a very big plus for your credit score. I would suggest NOT closing it in favor of another card.

Instead, keep the account open, use the card once in a blue moon just to let the company know it’s not to go dormant. Get the card you *really *want and use it as your primary.

Having the second line of credit is helpful to your score as well. When maintaining a balance, do NOT max one card out and leave the other empty. Two cards at 50% gives better score results than the same balance on one card.

Nobody who’s looking really cares if you flip your balances between cards or change your use preference–as long as your payments are on time and the creditor gets no grief. :slight_smile:

3

Pretty much like Inigo said. It always pays to have a long time account in good standing. But what would be better is to have multiple accounts in good standing. As long as you are on time with your payments and careful about not maxing out your balances you can only do better.

Good luck!