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hola2005
May 27th, 2009, 06:41 PM
I have been hpding two valuable credit cards, first is the CT Gas Advantage and, second is the BMO Mosiak (1 Airmile for every $20).

The CT card has been good because I have been exceeding the $2,000 a month limit and so getting 10 cents discount on every liter of gas. The need for spending $2,000 a month on the CT card has now gon, so I will be spending around $400 a month, and thus will be getting only 2 cents discount on every liter of gas - not really worth it. The BMO has also been great thus far, but it's about time to find a better airmiles collector.

Currently, I am looking at much valuable cards, such as Scotiabank 2% Cashback and American Express that offers 1 airmiles for every $15, plus travel insurance, road side assistance and more.

My question is, can I call CT and BMO and cancel my credit cards with them and open two new ones with Scotiabank and American Express? Will this action effect my credit score and what's the impact, especially I am looking into buying a house soon?

Any help is appreciated.
sslinn
May 27th, 2009, 07:44 PM
The greater the history on you credit report the better. Wouldn't cancel them.
Corvillus
May 27th, 2009, 07:46 PM
You can cancel them if you want but the impact on your credit score will surely be negative as this increases utilization. Since you're looking to buy a house soon, I wouldn't bother applying for CC's at all until after you get the mortgage, as doing so will also cause a temporary drop in score due to the credit hit and lower average age of accounts.
Islington
May 27th, 2009, 07:49 PM
My question is, can I call CT and BMO and cancel my credit cards with them and open two new ones with Scotiabank and American Express? Will this action effect my credit score and what's the impact, especially I am looking into buying a house soon?

Canceling both cards will drop the "average age" of your accounts to zero, and will hurt your credit score. You'd be better off choosing a no-fee option for the BMO Mosaic, setting both cards aside, and using each of them once a year to keep the accounts active.

If you are worried about having too much credit (which may affect your ability to add new credit), you can always drop the limits on each card to $500 or $1000.

You'll find similar tips in Hellfire's excellent Personal Credit thread (http://www.redflagdeals.com/forums/showthread.php?t=392710).