Personal Finance

Keep Credit Card for Credit History

  • Last Updated:
  • Oct 10th, 2014 12:16 pm
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[OP]
Newbie
Jul 30, 2016
14 posts
2 upvotes
Calgary, AB

Keep Credit Card for Credit History

I have had the RBC Avion Infinite credit card for about 4 years now which comes with an annual fee of $120. Basically in that time frame if I’ve bought so much as a candy bar I have put it on that credit card (no worries I pay my balance every month). I now have about 100,000 Avion travel rewards points which is just enough for a return trip to New Zealand. The Avion points program also allows a 1:1 points conversion to American Airlines points where 37.5K points would allow a one way trip to New Zealand. I recently looked into the travel rewards cards currently on the market and I would like to switch.

One of my friends advised me not to switch on the basis that currently my credit report will list my RBC card with a clean 4 year history. If I switch I will no longer have that solid history with a credit card, with a relatively new card being on the file. He said the actual score probably won’t change much but the report will and the banks take that into account when issuing you a mortgage rate (I plan on buying a home in about 3-4 years).

Is his advice valid? I don’t want to botch my future mortgage rate. I also don’t want to keep my RBC Avion card up until I buy a house if I don’t have to and all the while eating a $120 annual fee.
4 replies
Member
Oct 2, 2014
212 posts
35 upvotes
New Westminster
You can switch to another RBC credit card without affecting your 4 year history. If you are thinking of some other bank's credit card, then you need to keep the RBC credit card to keep the 4 year history.
Sr. Member
Aug 3, 2006
755 posts
136 upvotes
Toronto
inkjoy wrote: You can switch to another RBC credit card without affecting your 4 year history. If you are thinking of some other bank's credit card, then you need to keep the RBC credit card to keep the 4 year history.
If you switch to a no-fee RBC Visa, you will retain the history. Make sure you don't switch to a MasterCard.

If the card you'd like to use instead is not from RBC, apply for it and keep the no-fee RBC Visa active.
Deal Addict
Jan 28, 2014
3789 posts
904 upvotes
Toronto
Interesting. While I do realize the OP is referring to a RBC credit card and not TD, we will be cancelling our TD Aeroplan cards this Dec. TD has been our bank for 32 years but our Aerogold card was with CIBC and we were sold to TD when we were told we would not be and paid our fees in Dec. 2013. Since we already had the TD all inclusive (formerly select service account) we do have the TD First Class Travel Card that is included with the all inclusive package - but it is geared more to Expedia for TD and we do not book Expedia - ever.

Since we were sold and obviously did not receive any of the perks offered to new people from the street - nor were we targeted for the 115,000 Aeroplan miles for those new and sold applicants for the products we have had for years we will be closing our TD Aeroplan accounts.

I specifically asked about the credit card history being wiped since we were excellent customers with CIBC and always paid the balance in full each month and I know that the history was sold with the cards. TD told me (very rudely by the way) that our credit history would disappear on cancellation. I did question this since we have actually banked at TD for 32 years and do have the FC Travel Card. I was told it did not matter - well it does matter to me.

I have not given up on this yet - but was wondering if switching from a RBC reward card with a fee (as per the OP) to a no-fee RBC Visa is something specific to RBC. I have spoken with Amex - we have the Aeroplan Gold fee bearing cards - but also have a no fee card that we took out prior to the Aeroplan Gold cards being launched. We have had the Amex Aerogold card since launch date. I was told that our history would stay with Amex should we cancel our fee cards when my husband retires since we have the Holt's no fee Amex. But then who knows how the terms and conditions will change over the next year.

We have an R1 credit rating and do not churn credit cards. TD has of course tried to get us to move money back to TD from CIBC WG without offering us any incentive to do so (not that it would work). So we are bank shopping. Well except for the all inclusive account because we have a safety deposit box that I want to keep.
Deal Expert
Feb 29, 2008
28952 posts
4645 upvotes
Montreal
Switch to the highest non fee RBC Visa card of your choice, AFTER doing the AA or BA transfer. Not all cards offer that option.

Then cancel all secondary cards, reduce the credit limit as much as allowed and throw it in a drawer somewhere.

I have a 19 year old RBC Visa I keep just for that. It was originally a Visa gold, then platinum, then platinum avion and then infinite avion.


BTW be careful with AA transfers. AA has a time limit on points. I always used to transfer to BA executive during the 1.5x promos. BA can be redeemed on AA. If you live on the west coast, Cathay's program is also a good choice.

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