this post was submitted on 10 Dec 2024
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Have a credit card with crappy rewards but a high limit. If I cancel it, will a better card let me raise the limit? (sh.itjust.works)
submitted 4 months ago by [email protected] to c/personalfinancecanada
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I have 3 credit cards...

  1. Oldest, good for groceries, but that's it. It represents about 45% of my total credit card limit.
  2. Crappy card, used to have good rewards but now sucks. This is about 40% of my total credit card limit. A few years old. I use it once every few months to keep it active.
  3. My current "best" card that I use for most things. Only had it about a year. Represents around 15% of my total credit limit, but I'd like it to be more as it has the best rewards.

I pay off all my cards twice a month and have a great credit score.

I'm wondering if there's any drawbacks to cancelling my crappy card and either applying for a limit increase on my good one or just applying for a new/better card.

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[–] [email protected] 2 points 4 months ago (1 children)

It'd be different companies, unfortunately.

I've had a big jump in income between cards and my credit score is great. But I'm not even anywhere near my full credit limit and I don't plan to get there.

Maybe I'll just apply for a new card.

Would it be better to apply after cancelling the old one (since I'll then have a lower maximum credit available to me)?

[–] Shadow 2 points 4 months ago* (last edited 4 months ago) (1 children)

If you've actually checked your credit score and it looks good, I would just go ahead and apply. If you haven't checked, there's various services (creditkarma, borrowwell, etc) that will give you that data.

I do credit card churning (see reddit /r/churningcanada) and currently hold 10 cards, having gone through 20 in the past 2 years. As long as you pay off the cards fully each month and maintain a good credit rating, you can be pretty aggressive with your cards.

Check out https://www.reddit.com/r/churningcanada/comments/tujfse/best_current_credit_card_offers_in_canada_updated/ for suggestions on what cards are worth getting.

[–] [email protected] 2 points 4 months ago

Thanks for the tips!