Hello (awesome) Nerd Wallet gurus!
I’m doing some (much needed) wallet spring-cleaning and am hoping to ditch several second-rate cards in order build my way toward the best cards on the market.
First a bit of history: Five years ago I had no US credit history (I’m a Canadian) and accepted 4 of the best cards I could find at the time. Now however my FICO 8 credit score has reached 767 and I’m hoping to put in some research the cards I should invest in for many years given I currently have a nice high-paying San Francisco job!
About my usage. I buy everything through my best cash-back credit card and I order a lot online (e.g. Amazon). I rarely dine out, travel or rent hotels. While I always pay my balance in full each month, I do appreciate however cards that have low APR in case I have an unexpected financial downturn or something.
Currently my best credit card is the Wells Fargo Cash Wise. I like it a lot as it offers 1.5% cash back on everything. As my other cards are kind of crummy I haven’t used them in months and am considering cancelling them all!
My objective it to have within 6 months the best four credit cards that complement each other (e.g. use one for cash-back, one for travel, one for lowest-possible APR, etc) I intend to do this ‘clean up’ process over time in order to obtain the best APR and credit line possible.
From reading many articles on your (truly impressive) website, I see that the Citi Double Cash card offers 2% with no gimmicks. This seems right up my alley so I’ll probably ditch my existing Citi card and apply for that one!
In addition, the Apple Card is coming out this summer and although I’m an Android user and I would not see its awesome 2% cash back if I use the physical card, I really dig what this card is trying to do and will probably apply…
I’m wondering how to best approach banks like Citi for this process however given a surprising development trying to ‘upgrade’ another card I have issued by Capital One. What happened there is that yes they can upgrade me to one of their better cards but my APR stays at the really crummy 28% of my older card! (So what’s the good of ‘upgrading’??)
My questions to you are:
- Should I close my second-rate cards before applying for the good ones?
- Should I tried the bank’s ‘upgrade’ process or just close the older account to get the best APR on the new one?
- Which selection of 3-4 cards to you think is best suited for my credit card usage?
Thanks for the tips!