To get a New Credit Card or not get a New Credit Card?

[seven_of_nineski]

I am debating on whether or not to get a new credit card and need some help deciding. Basically, I really want to visit my sister in Russia next April since I won't be seeing her for at least 10 months, and I thought it would also be a great excuse to travel. I earn miles on my Citi AAdvantage Mastercard card which I would use for the trip but by the time I am able to purchase a plane ticket I think I will still be 20,000 miles under. It takes around 80,000 miles to get to St. Petersburg, Russia if you plan a trip four months ahead. As silly as it might seem just to get a card to go on a trip, I am young and don't have many responsibilities at this time in my life so I thought this would be a good time to go.

One of my concerns is how this would affect my credit. I currently have five credit cards: 3 store cards I rarely use, a Bank of America credit card I stopped using a couple of yrs ago, and my Mastercard which I got a few yrs ago and pay off every month. I hate the fact of already having 4 other cards I next to never use that will forever be on my credit history. By the way, will it hurt my credit history at all for cancelling cc's? I have excellent credit. I just wasn't sure whether adding another card would hurt me at all. I was thinking of getting a Citi AAdvantage Visa card for the 30,000 bonus miles you can earn if you charge and pay off $750 within the first 4 months. Purchasing 20,000 would cost $500 so I don't want to do that. I know this might cheat the system but part of me wonders if I could get the credit card to get the miles and then cancel it a year after so I don't have to end up paying the annual $85 fee.

What do you guys think?

 

[Lindley]

In general, opening another card will improve your credit and closing old cards with hurt it. Assuming you don't run up huge debts of course.

I'm not sure about the pre-fee-cancellation.

By the way, nothing stays on your credit history forever. Most things will drop off 7 years after they are closed out. A few really big problems may stick around for 10 years.

 

[SmoothieX]

Keep your existing card and charge everything you pay cash/debit/check for now.

One AA FFM plan may not work with another one even on the same airline.

Sounds like you are trying to double dip.

What I did for my engineering masters and am currently doing for my MBA is charge the tuition, then pay the card rather than the school. Racks up huge miles. If I'm close to some threshold, I'll start charging stuff like gas and groceries rather than debit them to get miles fast.

I've gotten free flights to the Desert Southwest and Alaska doing this. I have a Delta American Express card. AmEx has somewhat high annual expenses, but great benefits.

 

[Holdfast]

Unlike some people (who will doubtless find this thread sooner or later), I have no problems whatsoever with people using credit cards, and the concept of credit. In fact, I firmly believe that without debt and leverage, you can't have a modern economy.

Having said all that, so you know where I'm coming from, having 5 cards at a young age, and planning to get a sixth sounds like you run the risk of being unwise with your credit usage at some stage. If you can be sure you won't, fine. If you can't, don't get even more cards.

One other thing: a good credit score is all very well, but more important in the longer run is earning actual money, so your credit can be use on assets that can appreciate at a faster rate, thus contributing to a net increase in wealth; rather than on depreciating or ephemeral ones where you then risk a downward spiral. Just worrying about credit is like just worrying about expenditure rather than income when figuring out a budget.