Card decisions

[Carboran]

Hello! I am currently a junior in college. I have about $6,000 in subsidized stafford loans and two credit cards, which are paid in full each month and I have never missed or been late on a payment. They are my own, not my parents' and I cover all living expenses with my own money.

 

---The first card is a Wachovia Visa Preferred at 7.9 fixed APR on purchases with no annual fee and $5,500 limit. Very basic card, no rewards or anything, just a low APR. I charge one purchase every month or two to keep it up. I have had it for two years.

 

---The second card is Citi Dividend Platinum currently at 10.99% APR (9.24 variable + Fed Rate) with $3,000 limit. I use this card for everything, because it gives me cash back and has no annual fee. I have had it for a year.

 

Credit scores were all 718+ when I last checked three months ago.

 

I just got a pre-selected letter for AMEX blue for their 5% cash back card with no annual fee and a 10.74 fixed APR and I was thinking about accepting it, but then I started thinking.

 

I will probably graduate with (HOPEFULLY) less than 15k in loans from my undergard school, which isn't too bad for a 40k per year college (grants, scholarships, work-study, and parents). Most of these loand will be subsudized, so I won't worry about payments for awhile.

 

However, I will eventually have to start making payments, regardless of whether it will be after college or law school. Since I don't think I will ever need more than 3 credit cards, I am thinking of saving my last slot for a credit card for later, so that I can use the introductory 0% balance transfer to transfer the loans and save some money.

 

Another option is to cancel the Wachovia, and get the AMEX but since it has the lowest APR and is also the oldest credit line, I am feeling uneasy about doing that.

 

What are your expert opinions? Thanks in advance!!

[CargoJon]

Don't cancel the Wachovia...it's got very good terms and it's your oldest card.

 

AMEX is a good card to have, if you would like to use your slot for AMEX by all means they are a good issuer.

[Shawnee]

Don't close the Wachovia card, it would hurt your score. Since you PIF every month, a third good TL is fine. I would keep the two cards you already have, and get the Blue Cash.

[Carboran]

So should I apply for it now, or should I wait two more years and hope for another offer, so I can take advantage of the 0% introductory rate to transfer college loans?

 

Thanks

[Shawnee]

I would say get it now. That way in two years you have three very solid tradelines with history. At that point you should be able to get a prime card with a good introductory rate, such as one of the Chase cards.

[LKH]

So should I apply for it now, or should I wait two more years and hope for another offer, so I can take advantage of the 0% introductory rate to transfer college loans?

 

Thanks

<{POST_SNAPBACK}>

 

I agree with the others, get the card now. It never hurst to have a backup or 2 or 10. Hmmm, I've heard that somewhere before.

 

Also, you don't know if that offer will still be there in 2 years. Get it now, and in 2 years I'm sure with your credit then, you'll be able to get another 0% offer.

[Queen_Majyk]

My $0.02:

 

I agree with everyone else - keep your existing cards AND apply for the new Amex. Two years is plenty of time to let the new card age and you can apply for a new card with a 0% then. In addition to that logic - Citi quite often offers great BT deals like .99% for six months. If you wanted to take a BT offer you should not use the card you did the BT for anything else. If you have no other rewards cards you would have to use the Wachovia card for purchases (effectively missing out on rewards while you are payinf off the BT). If you have another rewards card you can use it for your everyday purchases and take Citi up on one of their offers.

[Carboran]

My $0.02:

 

I agree with everyone else - keep your existing cards AND apply for the new Amex. Two years is plenty of time to let the new card age and you can apply for a new card with a 0% then. In addition to that logic - Citi quite often offers great BT deals like .99% for six months. If you wanted to take a BT offer you should not use the card you did the BT for anything else. If you have no other rewards cards you would have to use the Wachovia card for purchases (effectively missing out on rewards while you are payinf off the BT). If you have another rewards card you can use it for your everyday purchases and take Citi up on one of their offers.

<{POST_SNAPBACK}>

 

 

Great points Queen_Majyk. I have already applied for the card and will find out the decision, as soon as I fax them a paycheck for income confirmation.

 

Thanks to all others for the input.

[Queen_Majyk]

Glad to be of service - I hope it works out for you. Let us know what happens!

[mch]

So should I apply for it now, or should I wait two more years and hope for another offer, so I can take advantage of the 0% introductory rate to transfer college loans?

 

Thanks

<{POST_SNAPBACK}>

 

I would suggest keeping your stanford loans seperate from your credit cards. You loose all of the fedrally mandated advantage to the loans if you pay them off with credit cards. They have low fixed interest and have deferment options, should you need them. If you need to lower payment, you can consolidate them into a longer term under federal consolidation programs.

 

Just a thought for your planning.