I am finding that there are many other credit card companies that offer much better benefits (much lower APR (though it%26#039;s variable, the one I have know is a fixed APR %16.99)) like airline miles, cash back for gas+groceries, but I%26#039;m worried my credit rating is going to go down for closing my existing credit card account. I do know the longer you have an account open and in good standing, the better for your credit rating, but what if another company is making me a a great offer, i.e. rolling over my balance with 0% interest until 2011? Is it worth it?
Would my credit rating decrease if I close an account with %16.99 w/ $5K debt %26amp; roll it over to a 0% APR act?
Why don%26#039;t you simply transfer your balance to the 0% card and keep the other one open, use it for everyday things keep your balance below 30% of your limit every month and pay it off in full before the due date.
Having two open accounts paid as agreed will help your score.
Would my credit rating decrease if I close an account with %16.99 w/ $5K debt %26amp; roll it over to a 0% APR act?
Having 3 revolving accounts will not hurt your score. Opening a new account will decrease your score for a short period of time. But what is more important is available credit. If you do close your current card the amount of your available credit will decrease by the card%26#039;s limit - that is not good.
For example, you have 2 card with total limit $10000. Your balance is $5000. That means that your credit utilization is 50% - that is very high and therefore is bad. Openning a new card with $5000 limit will increase your total limit to $15000. At this point your utilization is only 33%.
Anyway, closing your established account will do no good to your score.
No comments:
Post a Comment