Credit Cards

Dear Liz: I’m attracted to the credit card offers that give substantial mileage bonuses for opening and using an account. Most also waive the first year’s fee. I have taken advantage of one such card, and then I canceled it before any fee was due. (I certainly enjoyed using the miles.) I hesitate to take another offer because I fear opening and closing extra accounts might have a negative effect on my credit rating.

On the other hand, I am in my mid-60s, have excellent credit and am debt-free. I also don’t plan to make any credit purchases. What’s your advice?

Answer:If you have good credit and aren’t in the market for a major loan such as a mortgage, you shouldn’t worry about opening or closing a credit card account occasionally. Yes, such actions can ding your credit scores, but the effect is likely to be minimal, especially if you have several other open accounts that you regularly use.

If you are going to open a new card with an upfront bonus, make sure you understand the fine print. Most cards require you to spend a certain amount within a certain time frame to get the extra points. Typically the bigger the upfront bonus, the bigger the required “spend.”