Our Strategy for Opening and Closing Credit Cards

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Marie-Ève Leclerc
Marie-Ève Leclerc Marie-Ève Leclerc
Marie-Ève, Web Director at Milesopedia, is an expert in budget travel and a slow travel enthusiast. Specializing in Aeroplan, Scene+, and Marriott Bonvoy programs, she spends nearly six months a year abroad, making travel her way of life. Constantly seeking the best waves to surf, excellent coffee, and strategies to extend her travels, she is often found in coworking spaces with fellow digital nomads or by the sea, watching the sunset.
All posts by Marie-Ève Leclerc
Cartes de crédit stratégie
To the point Here's our strategy for opening and closing credit cards according to your objectives.

Several questions come up regularly in conversations on our Facebook group concerning credit card applications:

  • How do I open and close cedit cards?
  • How often can I apply for different cards?
  • How long should I keep my cards?
  • What’s a good long-term strategy?
Cartes-alternativesHSBC-MCworldElite-2400×1260

At Milesopedia, we reiterate this golden rule: before choosing a credit card, you need to establish your budget, build a strategy and plan your application sequence.

In fact, it is neither possible nor recommended to subscribe to all cards at once. You need to stagger your applications strategically.

This article will guide you through the essential steps for developing your credit card opening and closing strategy.

The Basics to Master

Asking for Several Credit Cards on the Same Day

Credit applications account for 10% of your credit score. However, credit bureaus (Equifax and Transunion) often consider multiple applications made on the same day as a single inquiry. This is because they assume you’re shopping for credit and and will not accept all offers.

That’s why it’s a good idea to group your credit card applications on the same day. However, keep in mind that each application may result in a credit check, and each newly approved account will be added to your credit file. This can temporarily impact your credit score, either positively or negatively.

Also, avoid applying for two cards from the same issuer on the same day: your chances of approval will be lower. For example, consider a combination of American Express, Scotiabank and/or CIBC cards.

Be Mindful of Your Credit Utilization Ratio

The utilization rate of your credit cards represents 30% of your credit score. To maintain a good score, make sure that your total spending does not exceed 30% of the available credit limit across all of your cards.

A practical tip: make regular payments without waiting for your monthly statement. This habit will help you maintain a low credit utilization ratio.

Spending Thresholds to Earn Welcome Bonuses

Earning welcome bonuses is the main advantage of new credit cards. Before submitting your applications, ask yourself two essential questions:

Payment services like Plastiq and PaySimply can help you reach these thresholds. However, when you need to spend $10,000 to $15,000 in three months, the challenge remains significant.

Integrate your planned expenses into your card application strategy. Never create artificial expenses for yourself! It goes against the main goal of hunting for points, which is to save money.

To optimize your chances of reaching the required thresholds, we recommend that couples stagger their requests. Space them out by one or two months rather than making them simultaneously.

How to Choose Your Cards

Which Credit Card Will Help Me Reach My Goal the Fastest?

First and foremost, clearly define your goal:

Not all points are equal. For example, Aeroplan points won’t help you renovate your kitchen. In this case, a card offering bonus cash back would be more appropriate. For a round-the-world trip, a card with no foreign currency conversion fees becomes essential.

If your goal is simply to “earn points for travel”, a more in-depth analysis is in order. There are different types of points for different types of trips. The best strategy often involves combining several types of points: some for accommodation, others for flight tickets, and one more for on-site expenses.

Your choice of credit card will depend on several factors:

Which Credit Card Offers the Highest Earning Rate?

The American Express Cobalt® Card offers one of the best accumulation rates in Canada in certain spending categories, such as groceries.

Here’s a handy renovation tip: buy Home Depot, RONA or Home Hardware gift cards at your local grocery or convenience store with your American Express Cobalt Card. You’ll earn 5 points per dollar (a minimum 5% return on your spending)!

This strategy can be applied in hundreds of shops, maximizing your points accumulation in a variety of situations.

Which Credit Card Offers the Most Generous Welcome Bonus?

If you’re planning a major expense (municipal taxes, car repairs, dental expenses) of several thousand dollars, look to premium cards such as:

These cards offer substantial welcome bonuses after significant spending within three months.

What is the Value of Points Earned With a Credit Card

The importance of annual fees should be considered in relation to the value of the points accumulated. For example, a card with an annual fee of $150 may be more cost-effective than a free card if it allows you to accumulate high-value points.

Before making your choice, calculate the real value of your points according to your intended use. The same amount of points can have very different values, depending on the program and type of reward chosen. To get a better idea, check out Milesopedia’s point value estimate.

Let’s take the example of a 50,000 Aeroplan points bonus. These points can be worth:

  • Over $1,000 in flights, depending on destination and fare class
  • $500 discount on Air Canada Vacations
  • Only $350 in Amazon gift cards

That’s why it’s crucial to evaluate not only the quantity of points on offer, but above all their potential value in relation to your travel objectives.

Why pay annual fees?

While no-annual-fee cards are attractive, they’re not always the best value. Instead, consider the total return on investment: the benefits included, such as insurance, access to airport lounges, baggage and the value of the welcome bonus. In most cases, these benefits more than offset the annual fee. Some cards even offer the first year free of charge for new cardholders.

Promotions to Keep an Eye On

The best credit card offers are often temporary. A particularly generous promotion may disappear without notice, which is why it’s important to seize these opportunities when they come up.

Before applying look out for two aspects:

  • Current special promotions on your targeted cards
  • New offers and changes to come

Our monthly ranking of the best offers will help you spot these opportunities and prioritize your card requests.

Application Strategies

Credit Card Application Frequency

With a good credit score, it’s possible to apply for credit cards approximately every three months. Similar to investing, your approach can be cautious, moderate, or bold:

  • Prudent: 2 to 3 cards per year (one card every 4 to 6 months)
  • Moderate: 4 to 5 cards per year (one card every 3 to 4 months)
  • Bold: 6 to 8 cards a year (two cards every 3 to 4 months)

To get started, we recommend a cautious approach with two or three cards in the first year. Take the time to learn how to maximize the benefits of each card before adding new ones.

Credit Card Issuers' Rules

Each issuer imposes its own conditions for obtaining a welcome bonus. Here are the main rules you need to know:

Issuer Rule
American Express Canada Lifetime bonus per card
NBC Not be a NBC cardholder or have been within the last 24 months
BMO No rule displayed
CIBC Not have been a cardholder for the last 12 months
MBNA No rules displayed
RBC 90 days between requests
Scotia Not be a Scotiabank cardholder or have been within the last 24 months
TD Not have been a cardholder for the last 12 months

Card Management

Cards to Keep In Your Wallet

Every credit card follows a natural cycle that begins with its acquisition and eventually ends with its closure. The length of this cycle varies according to the card’s initial purpose and the benefits it continues to offer.

So, your ideal card portfolio depends on your personal habits and goals. A frequent traveller will have different needs than someone who prioritizes grocery rewards. The key is to identify cards whose benefits justify their annual fees year after year.

For example, a traveller could build an excellent foundation with these two complementary cards:

Credit card Justification Net cost
American Express Cobalt® Card

$155.88

National Bank World Elite Mastercard

$0 (thanks to annual travel credit)

You can then add cards such as the Marriott Bonvoy® American Express®* Card depending on your needs and travel style. In fact, this card offers a free one-night certificate that offsets the annual fee year after year!

Every year, when you bill your expenses, ask yourself: does this card bring me more value than its cost? This analysis will help you maintain an optimal portfolio, made up only of cards that are truly useful to you.

How Long Do I Have to Keep a New Card?

The golden rule is to keep all new cards for at least 12 months. This is particularly important for American Express cards, whose Membership Rewards points are lost on closure if not transferred.

On the other hand, points already paid into external programs such as Aeroplan, AIR MILES, Scene+ or Marriott Bonvoy will remain in your account even if you close the credit card.

When the next annual fee is invoiced, you have a 30-day window in which to make your decision. This period allows you to assess whether the benefits of the card justify its renewal.

Cards offering access to VIP lounges require special care. It’s essential to keep them for as long as you have travel plans, as closing your account immediately cancels your Priority Pass or DragonPass access. All unused passes will be lost, even if they were included in your annual fee.

For travel insurance, the card must remain active until you return from all your insured trips, as no claims are possible once the account has been closed.

The same logic applies to purchase insurance and extended warranties. If you purchase an electronic device with a card offering a two-year extended warranty, you must keep this same card for the duration of the coverage.

Once the account is closed, these protections cease immediately. This is particularly important when making major purchases, such as household appliances or electronics.

An important point to note: even if you later reapply for the same card, it will be considered a new account and will not cover your previous purchases.

An Additional Card, Yes or No?

No. In the vast majority of cases, it is not very cost-effective to request an additional card at the time of application (except when the additional card provides the same benefits, as is the case with the TD® Aeroplan® Visa Infinite* Card or the BMO eclipse Visa Infinite* Card).

For a couple, the optimal strategy is for each spouse to apply for their own card. Even if this means higher annual fees, two welcome bonuses more than make up for the difference.

The addition of an authorized user in no way affects the credit history of either the primary cardholder or the additional user. This status does not prevent you from applying for the same card at a later date as the primary cardholder, and obtaining the welcome bonus.

Before signing up for two identical cards, a couple should assess their ability to reach the spending thresholds required for each welcome bonus within the allotted time.

Bottom Line

Managing your credit card portfolio may seem complex at first. But over time, you’ll develop your own method for navigating this world of points efficiently.

The ultimate goal remains the same: to travel for free (or almost free!), as many members of our community are already doing. Remember, it’s not about going into debt, it’s about optimizing your current expenses. Everyone needs to adapt their strategy to their own needs and financial capabilities.

To keep up to date with the best offers and the latest travel news, sign up for our newsletter. And don’t hesitate to join our Facebook group to ask questions and chat with a passionate community!

Come to discuss that topic in our Facebook Group!
Audrey Voisine
Audrey Voisine
Audrey, co-founder of Milesopedia, is a dedicated entrepreneur, avid traveler, and mother of two children. She shares valuable tips and recommendations for families and frequent travellers alike, helping everyone get the most from points and rewards programs. As Executive Vice President of Marketing and Communications, she is committed to guiding Milesopedia readers toward more accessible, practical, and memorable journeys.
All posts by Audrey Voisine

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