Let's Talk Bout' Transferring My 13.24% APR Credit Card to a New 0% Credit Card......

[HappyDude20]

Alright guys, I'm back!

So... here's what's up.

About a week ago I got to thinking if I could lower my current 13.24% APR with my Citi Credit Card down to something lower. Upon calling Citi, I made up a story explaining that another credit card provider was offering me a credit card with 0% for one year and a 0% APR (also for one year) with the balance i'd be transferring over from my current Citi Credit Card.

The Rep. I was on the phone with transferred me to some higher up, of which I believe was simply a person who spoke with a bit more clarity and confidence.

This representative told me the best he could do is give me a promotional APR for the next 6 months, of which he did, lowering my current APR of 13.24% to 7.99% from now on till mid-May 2011.

This was after all my intended outcome; to lower my APR anyway that I could. . . .

...But then I got to thinking..

I've never really been a fan of Citi Cards. I got their credit card back in 2007, when I was a young and wanted to begin to establish credit. The only reason I chose Citi back then was cause they were the card providing me with the highest credit line at $700; which I believe is good considering I was only 19 at the time. Since then my credit line has raised up to $4,800. Every year in January I get my credit report from the 3 major unions and make sure to stay on top of my finances and know where my credit is at. At the beginning of 2010 my Fico Score was at 715.

But the point remains that I'm not that big of a fan of Citi Cards. Their customer phone support is a horrible experience every time I speak with someone that is obviously thousands of miles away from the U.S. & though there are now a few Citi Branch locations near where I live (there weren't any years ago), these locations cannot do much with my account; where tellers have always referred me to the customer support phone number saying the braches usually deal with loans, mortgages', etc.


So here is what i'm asking in this thread:

I've heard time and time again that it can hurt my credit score if I decide to close/cancel one of my existing credit cards (My case, Citi Card).

I cannot deny the appeal of wanting to evolve from this Platinum Citi Credit Card to a Credit Card that would provide the incentive of 0% for one year, 0% APR for the balance i'd be transferring over from my current Citi Card...and in all honesty would love to break free from the horrible customer support of Citi, and perhaps find a card that provides flyer miles.

But again, my concern revolves around the common story that closing a credit card hurts my credit score; something along the lines of it being important to keep a card open for 7 years since last using it...or something like that.





So let's talk..

 

[iBlue]

I believe it only really does any damage if you do a lot of transferring around, say more than once per year. Making a switch to a new card after a few years is no big deal. Having too many lines of credit open can be more damaging because lenders think it's a liability. So if you find a new card offer you think you'd like, take it, transfer and close your citi account.

Credit can be a bit mysterious but this is how I would do it from what I've come to understand.

 

[HappyDude20]

I believe it only really does any damage if you do a lot of transferring around, say more than once per year. Making a switch to a new card after a few years is no big deal. Having too many lines of credit open can be more damaging because lenders think it's a liability. So if you find a new card offer you think you'd like, take it, transfer and close your citi account.

Credit can be a bit mysterious but this is how I would do it from what I've come to understand.

Wait, wait..

So I can close the Citi account once i've transferred the balance over the say the new Capital One Double Miles Card?

What I was planning was transfer the balance to the new card and keep the Citi account open but cut up the card and no longer use it...or at the very least use it for meager purchases.

 

[iBlue]

Wait, wait..

So I can close the Citi account once i've transferred the balance over the say the new Capital One Double Miles Card?

What I was planning was transfer the balance to the new card and keep the Citi account open but cut up the card and no longer use it...or at the very least use it for meager purchases.

I would think you can. Check your terms and conditions. Unless you're in a contract period, of sorts, they shouldn't be able to force you to keep the card account open if you have no balance.

I'm sure your plan would be fine too. Just don't keep TOO many high limit card accounts open at one time. That total credit amount (limit) open to you can make some lenders (particularly mortgage lenders) wary of you because they don't know if you'll up and put yourself into debt.

 

[rdowns]

I always love these types of threads where invariably, customer service is mentioned.

Who are all you people who deal regularly with customer service departments? What the hell are you contacting them regularly for? Why are you raising costs for the rest of us?

 

[fivepoint]

Switching credit cards will not damage your credit score as much has having unpaid balance or late fees of any kind on your credit card will. If you're truly worried about your credit score, pay off your credit card at the end of every month, completely.

I would not be concerned with switching cards at this point unless you plan on doing it a ton in the future. Switching 2-3 times isn't going to put up any red flags but if you're a habitual switcher that will cause problems with securing credit in the future.

 

[SidewaysTakumi]

I am having somewhat of a similar situation--

I had about 3k on a Chase card up until a few months ago.

I received an offer in the mail for 0% until 9/11 (actually from Citi)

I originally transferred 2K of the Chase balance onto the Citi card (limit was 2700)

Now that I've paid down some of that balance, and some of the Chase, I am planning on moving the rest of the Chase balance over to the Citi card.
This will max out the Citi card but completely clear the Chase card.

So then, I have about 10 months to pay off the Citi card at 0% interest.

My Chase card will remain open and will be used for gas only and paid off every month. Within 10 months, my Citi card will be paid off--but combining them and having no interest leaves me with more money every month.

Once it's paid off, I will have no credit card debt but 2 accounts open. I'm still not sure if I will keep them both open once they are both paid off. But for now, that's my plan.

 

[wvuwhat]

Wait, wait..

So I can close the Citi account once i've transferred the balance over the say the new Capital One Double Miles Card?

What I was planning was transfer the balance to the new card and keep the Citi account open but cut up the card and no longer use it...or at the very least use it for meager purchases.

You're going from the worst, to the 2nd worst company in my opinion. You need to be thinking American Express or Discover. Both have great customer service and I was able to transfer my small debt while in college (2008) from a Citi student card to Discover at 0% for a year.