Is this a bad time to get a new credit card?

LadyM

So I was considering getting another credit card because I know it dings your credit score slightly and I don't think I'll have any need for anyone to pull up a credit report on me for at least a year, which will give it time to "recover."

But then with the financial market being the way it is, I'm wondering if this is just a terrible time to get a new credit card? (My credit score is 783, BTW.)

If anyone knows of a good website that compares credit cards and their rates, that would be great too. I want something with no yearly fee and low interest (who doesn't, right?), although hopefully I will never have to pay interest on it. I pay my credit card (only have one right now) off every month. I just want a second one for emergencies, like if one of my cats needs a surgery or something.

Treeloot

LadyM wrote: »

I just want a second one for emergencies, like if one of my cats needs a surgery or something.

Before applying for a new credit card, you could try calling or emailing your credit card company to ask if they'll raise your credit limit.

Cauld

now's a fine time to get a new card. I usually just browse through all offers that come in the mail for one that meets my criterea, which are similar to yours. I also go for cash back, since that's free money.

LadyM

Treeloot wrote: »

LadyM wrote: »

I just want a second one for emergencies, like if one of my cats needs a surgery or something.

Before applying for a new credit card, you could try calling or emailing your credit card company to ask if they'll raise your credit limit.

My current credit card is through my credit union, will that make a difference? Actually, they (the credit union) did just recently mail me a letter saying they were raising my limit by $500.

NotYou

They automatically usually raise limits by the minimum every now and then, however, if you ask for it to be raised, there is often times a much higher level they can raise it too. Just ask. Takes a few minutes.

Unknown

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Luthz

Cauld wrote: »

now's a fine time to get a new card. I usually just browse through all offers that come in the mail for one that meets my criterea, which are similar to yours. I also go for cash back, since that's free money.

Consider very carefully whether credits that provide cashback are worth it for you, as they most often carry a higher APR than their point accruing or no bonus credit card equivalents. If you carry a balance generally it does not work out in your favor, as you don't earn cash back on interest payments, yearly fees, balance transfers and I believe on any government related charge.

Also, depending on how much you actually spend, cash back cards may have little to no value for example the blue cash from american express advertises "up to 5%" but from the webpage:

American Express wrote:

Blue cash gets more rewarding the more you use it. After you spend $6,500 on your Card you boost your earnings from 0.5% to to 1.5% on every purchase you make. Plus you can go from 1% to 5% on every day purchases like groceries and gasoline.

Source - American Express

So pretty much, in order to get any decent percentage of money back, you would need to be spending more than $6,500 monthly on groceries alone.

Cauld

Luthz wrote: »

Cauld wrote: »

now's a fine time to get a new card. I usually just browse through all offers that come in the mail for one that meets my criterea, which are similar to yours. I also go for cash back, since that's free money.

Consider very carefully whether credits that provide cashback are worth it for you, as they most often carry a higher APR than their point accruing or no bonus credit card equivalents. If you carry a balance generally it does not work out in your favor, as you don't earn cash back on interest payments, yearly fees, balance transfers and I believe on any government related charge.

Also, depending on how much you actually spend, cash back cards may have little to no value for example the blue cash from american express advertises "up to 5%" but from the webpage:

American Express wrote:

Blue cash gets more rewarding the more you use it. After you spend $6,500 on your Card you boost your earnings from 0.5% to to 1.5% on every purchase you make. Plus you can go from 1% to 5% on every day purchases like groceries and gasoline.

Source - American Express

So pretty much, in order to get any decent percentage of money back, you would need to be spending more than $6,500 monthly on groceries alone.

Well, I don't carry a balance and get at least 1% back from all my purchases. So assuming I spend $500/month on my card (pretty reasonable), that's $60 in free money every year. I'm ok with that. There's no annual fee. The OP seemed to be in the same situation as I am, paying off their card every month and wanting a card with no annual fee, so I tailored my recommendation to that.

Luthz

Then by all means, go for it.

As a side note, I made a mistake in my earlier post, it appears that the cash refunds are totaled yearly not monthly, so its 6500/year before you start getting 5% on everyday things, not 6500/month.

cloudeagle

It's really better to ask to have your line of credit raised than to have multiple cards. And these requests generally get fulfilled, especially if you have a good credit score.

Basar

Applying for a credit card will not ding your score. Credit card enquiries are soft pulls, unlike other enquiries which are hard pulls.

Caliban42

cloudeagle wrote: »

It's really better to ask to have your line of credit raised than to have multiple cards. And these requests generally get fulfilled, especially if you have a good credit score.

This is both right and wrong. If you have multiple cards from one company, say Bank of America, it would probably be better to roll them into one card with a higher overall limit. But since part of your FICO score considers the types of accounts you have plus the average age of accounts, multiple credit lines are a good idea.

For example, if you only have one credit card for five years and then get a car loan, suddenly your average age on accounts is 2.5 years, where if you'd had two cards for five years, that car loan would only take your average age down to 3.3 years.

Plus, what if the credit card company decides to start lowering limits, as they've been doing lately? Or even worse, closing accounts. They're not just doing this to people with late payments, either. With only one card, you're screwed.