Should I open a new Discover card? (credit cards, payment, visa)

[descovy]

I posted recently about closing my BOA card because of the annual fee. It had a $14k credit limit.

I have an offer from Discover for a 0% APR card until June 2010. I am considering opening it to make up some of the credit line I gave up when I closed my BOA card.

I would use it, because if I charge $600 I will be eligible for a $75 bonus.

My credit score is 750+... at least it was before I closed that BOA account... don't know how that action affected my score.

In light of these new days in the CC world, would this be a good idea? Or would opening a new CC hurt my score (or maybe even my 2 regular cards more)

BTW my "regular cards" are an AMEX that I use when I shop at Costco & a Capital One with 1% cash rewards, that I almost always pay in full (or leave a small amount carried over)

[M3 Mitch]

I have had a Discover card since 1988 IIRC, have never paid any fees or interest, get the cash-back rewards, if you pay the bill off every month I don't see any downside.

Your mileage, of course, may vary.

[Metrix1234]

I have to say I am exactly like you.. I also have an Amex and Capital One card. I definitely don't see a down side in opening up the Discovery card. Although, I think the thing you need to ask yourself is do you really need that big of a credit line? Unless there is some added benefit you are receiving from the card, I think it might be better just to stay with what you know that works.

One thing I might suggest you do is open up credit cards at retail stores you shop at frequently and just pay them off each month. You actually save a boat load with the added discounts.

[texdav]

Personally i use my discover card more than any toher card because its accepted at most places and pays money back. Other than that I use a visa where not aceepted which is are few now days. I don't like having alot of cards.Never had a problem with them but I do not carry a balance on any card.

[user_id]

You'll get a small hit to your score by applying for a new card, but the hit is relatively short lived and is completely gone from your report after 2 years.

Discover cards always seemed pointless to me as they are not accepted everywhere.

[long101]

Originally Posted by user_id

Discover cards always seemed pointless to me as they are not accepted everywhere.

That is true, it can be a pain for your Discover card not being accepted (and somewhat embarressing at times). However the rewards are some of the best I have seen, there is no annual fee, and they give you a pretty large credit limit (just in case you want to throw a downpayment on a car like I have). I carry a Discover (which I try to use for everything) and a Capital one with me at all times.

[StoneOne]

Why are you so concerned about your credit score, or at least the very small amount it might be affected by closing or opening a new account?

I would ask yourself these questions - "Do I want to have XX amount of unsecured credit available to me for free, and have the opportunity to get cash-back bonuses on certain types of purchases? Am I responsible enough to not run up a huge debt?"

[ChunkyMonkey]

Only open it if you are planning to pay it off every month. Once the intro rate runs out, it will switch to a hefty APR. Also, keep in mind the 1% cash back only applies after a minimum purchase something in the range of $2000 or so. The initial purchase earns only 0.5 a percent. They do have 5% cash back specials that will apply to specific transactions in a 3 month span or so. For example, supermakets and gas charges will earn 5% from Oct-Dec. 2009, which is a nice perk. However, unless you plan on using it alot and pay it every month, don't bother. I wouldn't open it up just for your credit score.

[long101]

^ on the 5% they cut you off at 200 in purchases. So in the first month Im always capped off.

[ChunkyMonkey]

Originally Posted by long101

^ on the 5% they cut you off at 200 in purchases. So in the first month Im always capped off.

No the 5% will apply to all purchases that qualify in that specific time period with no maximum. So, if you spend a ton of money in the time period on those specific transactions you can earn quite a bit. So, it is a nice perk.

The initial purchase I was mentioning works like this:
The first $1,500 you charge from each anniversary date earns .25% cashback. $1,500 to$2,999 earns 0.50% and anything after $3,000 you will earn 1 percent. Not so great if you don't spend a lot with the Discover Card.