 Replacing a credit card that has no rewards
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 Dear
Dr. Don,
I currently hold a credit card that offers no points or rewards. It is the first credit card I ever had, and currently the only one in my name only (I share others with my husband).
I am interested in dropping my current card for one that offers a better rewards program. However, I'm not sure how to accomplish this without hurting my credit score. I am not interested in keeping this card and opening another, as I already have enough cards to manage! I've thought of three options, but I don't know which is best. They are:
- Ask my card provider to convert my current card to another in their arsenal that offers points.
- Close my current card and open another with a different provider.
- Keep my current card and live without the points option.
I don't carry a balance on any card, so that is a non-issue. Can you offer any advice?
-- Sarah Spoils
 Dear
Sarah,
I'm always happy to offer some advice. First, start with what you're
trying to accomplish with accumulating points, rewards or cash.
Airline tickets, college savings, discounts on cars and hotel stays
are all possible with rewards cards. A strategy when it comes to
managing your spending on your credit cards can help you reach those
goals.
If your current card isn't providing the incentives
you're looking for then it's time to find one that will. Bankrate
has a credit
card search feature that will help you find that new credit
card.
There's no harm in asking the current card provider
what else it has in its arsenal for reward cards and no particular
reason to live without a rewards card. That said, I hesitate to
recommend that you close the old account.
One of the component parts of your credit score is the length
of credit history on your active accounts. Closing your oldest account
can hurt your score, especially if the other cards you carry were
recently issued. Pull a copy of your credit report and review it
with an eye toward the age of the account relationships. A Bankrate
feature, "Free
credit reports for all," explains how to get a free copy
of your credit report.
Even if you decide to close out the account, you should wait until after you've applied for the new credit card. Credit card companies use your credit score to determine the terms of your cardholder agreement and a better credit score means better credit terms.
You've reminded me that I need to go through this
process with one of my credit cards. Since I moved to the Northeast
I've been flying Southwest and US Airways a lot more than Delta
but still carry a Delta SkyMiles card.
To ask a question of Dr. Don, go to the "Ask
the Experts" page, and select one of these topics: "Financing
a home," "Saving & investing" or "money."
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