Credit Cards

[excelblue]

The reason to get new cards is to lower your total credit utilization. While the typical rule of thumb is no more than 33%, the optimal number is actually around 10%.

So, if you are using more than 10% of your limit on your other cards, it might help to get a new one.

That said, I have both an AmEx and Discover. They both have their different benefits, but I like the AmEx much better.

I have the Blue Cash AmEx. The 3% cash back on groceries and 2% on gas is really nice. I also like how each purchase I make with it is covered by a warranty from AmEx itself, so if I have a defective item and the merchant is being useless, I'm covered. It's also extremely fun to have a transparent credit card.

The Discover card has 5% cash back on various categories at various times, but they tend to be for certain luxuries that I generally tend not to indulge in. As a result, it builds real slowly. Whenever I had to call them, they're also noticeably less professional than AmEx.

Generally speaking:

AmEx: better cash back for essentials, extra protection, high APR
Discover: better cash back for luxuries, low APR

[AlphaFrog]

I decided to try for an AmEx, and they couldn't instantly approve and are mailing a decision. I've had that go both ways as far as getting approved. The last two (a year ago) both got approved. Annnnd, due to my lack of patience, I went ahead and applied for a Discover as well. I got instant approval for a fairly decent amount. Whether I come out ahead on my credit score in the end, I've now got some windfall financially for NYC.


Ironic confession time: My oldest card was a tiny limit card with an annual fee. I called the bank to see, since I've had this card since 2008 and neeeever been late on a payment including the other two cards I've had with this same bank, if they would waive the fee or convert it to a different type of card. They said they couldn't without losing the credit history. So it got put out of my mind, and I forgot to make the payment on the fee (I don't use this card much anymore). I called the bank (again) to see if they would waive the late fee and not report to the credit bureau since I've neeeever been late on a payment, and I was only 1 day late, and he told me that it was all good - my type of card doesn't charge a late fee on a balance under $100, and doesn't report unless you're 30 days past due.

[aggieAXO]

I opened 2 credit cards iin the past 2 years (one in mid 2010 and one last year). It has taken 2 years to recover from the hit on my credit from the first card I opened and likely will take another year to recover from the second card. So I would say it takes about 2 years to recover. I will not do that again!