Hey
One of the most common questions I get regarding earning miles and points with credit cards is the impact to one's credit score.
You probably already know that you need great credit in order to be approved for most of the cards with Susi sign up bonuses, but what is the impact to your credit if you are opening and closing cards?
I opened up two new personal cards this year as well as two new business cards and closed two cards as well. My credit credit score is currently 761, which is 'very good.' Before opening a few new cards this year (2 personal and 2 business), it was 800.
But doesn't closing accounts hurt your credit score?
From my personal experience, opening and closing accounts has a short term impact provided you pay your cards off in full each month, don't take on a ton of debt, and aren't going crazy with racking up offers.
There are THREE things to keep in mind when it comes to opening and closing cards:
Banks don't like churning and burning, and may even ban you if it appears you open and close cards immediately after getting the bonus. Don't overdo it. Call to see if you can downgrade to a card with no fee before canceling to give it a bit more time.
Chase also has a 5/24 rule which means you can't earn a new signup bonus if you've opened up five cards with any bank within the past 24 months. Business cards are excluded from this and are my main way of avoiding this issue.
Who can open a business card? Any business owner, freelancer, side hustle income generator, or someone who plans to do any of these things. Business cards often have the best signup bonuses and lowest fees!
Finally, if you need to borrow money soon, like to buy a car or a home, wait to open any cards as you'll want the best credit possible to get the best possible rate. I don't have any of those scenarios coming up, so having a 'great' credit score is good enough for me!
If you're curious what ways you could maximize a welcome offer, these are the top cards offering welcome offers right now.
Tour UPDATE
Interested in joining to swim with whales in French Polynesia? We're running this magical trip again this coming August-September, and you can find out more and sign up here.
Next time, we'll dive into the wonderful world of referral bonuses and which cards have the best ones.
Hugs,
Kristin
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