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1) Do you spend the minimum amount to redeem the promotion and then terminate the credit card afterward?
2) Directly cancel the credit card?
3) Hold for a year then cancel?
Out of this 3 options not sure whether will it affect my credit score or in future I need to sign up a new credit card from the same bank?
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thefrugalstudent
21 Nov 2021
Founder at thefrugalstudent.com
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Hi Anon,
I assume your card has already been approved?
If you applied for this card to get the signup reward, fulfil the minimum spending and hold the card at least until you've received the reward.
If you cancel the card and apply for the correct card now, you won't be eligible for the signup reward because you're no longer considered a new customer. So there's no point in cancelling it now.
After receiving the reward, you can apply for the card you originally wanted if you still want it, and choose to keep or cancel this current card.
Hope this helps!
Regards,
thefrugalstudent