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js973

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Want to apply for new card - cancel old one or keep it? Short credit history
19 year old with 6 months of credit history. My score is a 687 currently. Main thing keeping it lower than 700 (according to the credit simulator and other data on CK) is my CCU, which I've already addressed and am waiting to see the results in my score for next month's update.

Question is: I'm looking to apply for a cash rewards card (I have my eye on the AMEX Blue Cash Preferred). Let's assume for a second that I'll get approved - judging by the average score of CK cardholders, it's not out of the question - should I keep my current card and pay off the balance, keep a very low balance monthly, or close it?

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Short History

You need to keep the card with a low balance.  Once you get the new card, your average overall credit history will decrease.  If you cancel your old card, that history will get even lower.  I keep 2 cards with an extremely low balance and just pay the minimum to keep the history going.  I use the Amex EveryDay card for all other purchases.

Top Contributor
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* You Never want to close a Credit Card account. That is unless you have a Very High Yearly fee on it, but then you want to make sure it does not impact your average age of accounts.

* You are only 19 and not even out of the gate with your credit history.    Credit history takes many many years to build up.  with 6 months you have not even scratched the surface.  ( My Oldest  Credit Card is a JCP Store Card,  21 years.  We will never close this account )

* You need a credit plan,  were do you see yourself in 3, 5, 10 or even 15 years from how and what credit history you will need to make long term goals.

* Never Charge any thing you can not pay for right now!  

* Always pay your Balance in full  every month,  never leave a balance  EVER!

* Don't change items just to get rewards.  Rewards are not that big of a deal in my book and the folks that can work the rewards cards the best are charging 5K and up per month and paying it off every month.

hope that helps out

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