Here are my goals when I make credit card decisions:

 

1. Pay balances off in full each month
2. Pay no annual fees
3. Keep cards with long histories to boost credit scores
4. Maintain at least one joint card with my spouse
5. Maintain one card in my own name only and make sure my spouse does the same
6. Maximize rewards, prioritizing cashback over miles or other points systems

 

Our household has the following cards:
United Mileage Plus Visa, no annual fee, gives 1 mile for every $2. I barely use this card, but I keep it because it’s my longest standing card and helps my credit score. This is a joint account.
Citi Dividend Platinum Select, no annual fee, gives 5% cashback on grocery, drug, and gas purchases and 1% on everything else. $300 annual reward limit. This is my primary card. This is my account only.
MBNA Wachovia Worldpoints Visa, no annual fee, gives Worldpoints which can be redeemed for low cash rewards, miles, or merchandise. I got it originally to provide overdraft protection for my checking account. My spouse uses this card more than any other. This is a joint account.
Discover card, no annual fee, gives 1% cash back. This is M’s account only. He’s had it forever and so it’s very valuable to his credit score.

Last year, I transferred my Chase Mileage Plus card to one with a smaller reward but no annual fee. And early this year, I improved my cashback rewards on my primary card when I got rid of my Citi Upromise card in favor of the Citi Dividend Platinum Select. Both Chase and Citi allowed me to keep essentially the same account with the same account history, but change the rewards program I was part of. Chase gave me a new CC number, but Citi did not.

 

Today, I called MBNA to see if I could get a Fidelity College 529 card, which puts 2% cashback in a college savings account with a $1500 annual maximum. I wanted to retain my credit history with MBNA, but get rid of my Worldpoints card. Unlike Chase and Citi, MBNA required me to submit a new credit application for the new card so I checked my free credit score first. I decided it was worth it, because a 2% cash reward is much better than the Worldpoints system. I opted to keep my Worldpoints card so my credit won’t be dinged. I’ll keep one small bill on autopay on that card so I’ll have a balance to pay every month, which will be good for my credit history.

 

I plan to use the MBNA/Fidelity for all day-to-day purchases except gas, groceries and drugstore purchases. Those will go on the Citi card for a 5% cashback reward.

 

I’m looking forward to getting the new cards, even though I’m annoyed with MBNA for making me apply all over again and submit to a hard credit pull. I understand that it’s because their contracts with Wachovia and Fidelity require it, but I’m still disappointed.