[Spunger]

OK.......

So currently I have had 2 credit cards. One for 5 or 6 years and the other for 3 or 4 (can't completly remember) but I've gotten new one's because they have expired so long enough for that. Both cards have sucky intrest rates (one's like 14% and I think the other might be the same or slightly higher). They offer me nothing, I pay no fee's to have them, and they'll each give me $10,000 limits if I wanted (currently at $7,000) each.

I get all those offer's and such in the mail. I thought about consoldating these into one card. I have no balance on either one so I could care less if I cut them up or not. The only reason I got one credit card so long ago was it offered balance transfers for 0% for like a year so I transfered all money from one to the other so I didn't have to pay intrest on anything...

I want to make sure, if it says "fixed" it doesn't change. If it's fixed at 7.9% then that's what it is for as long as you have the card correct?

My question is if I got rid of my 2 current cards and took this rewards card with a fixed rate does it hurt my credit score or anything? I have never missed a payment, always been on time, so as far as I know it's clean. I'm guessing they (credit report deals) don't like you jumping from card to card to card but I'm not getting anything special, probably why I don't use it more, but was curious as to anything wrong with my idea?

Any help would be great

 

[LordOpie]

Fixed* at 7.9%!

* for the first three months. See insert for details.

 

[Spunger]

LOL I can't type it all out, it says see A

A consists of "rates, fes, and terms may change: We reserve the right to change the account terms including the APR's at any time for any reason, in addition to APR increased that may occur for failuer to comply with the terms of your account. For example, we may change the terms based on information itn your credit report, such as the number of other credit card accounts you have and their balances. The APRs for this offer are not guaranteed: APRs may change to hgiher APRs, fixed APRs may change to variable APRs may change to fixed APRs. Any changes will be in accordance with your account agreement"

Lucky I type like 60+ w.p.m

 

[Austin Bike]

Here's the short answer:

The fine print always allows them to do anything they want at any time.

ALWAYS

There has NEVER been a set of credit card terms that have ever been consumer-friendly. Even the best companies have a "screw the customer" clause in their terms, just in case. Even if they never use it.

Pay off your balances, get 2 cards (so you always have a backup) and pay your balance off every month.

If you never carry a balance it doesn't matter what the terms or the interest rates are. I charge a ton, my AMEX gives me % back on purchases (5% for travel purchases and I spend a lot of time overseas) and I haven't paid a penny of interest in 10 years.

The best thing that you can do for your long term financial health is get in front of credit card debt. And stay there.

 

[douglas]

switch to the lower rate, and pay off the entire balance ASAP

 

[MTB_Rob_NC]

WOOOOOOOOOOOOO - Nelly, wait a second.

You are really asking 2 questions here.

1) What is the best way for you to manage your finances using a Credit card(s).

To answer that, find the credit card that has the best current terms, consolidate your debt onto that card and then PAY IT OFF. Do not buy ANYTHING new using that credit card, use it as a loan kind of. Just keep paying down the debt until it is gone. Most of those introductory rates get bumped AS SOON as you buy something new and start carrying a balance on anything other then the transferred balance.

2) What will these moves do to your credit score?

Credit score is made up of a NUMBER of things, but I am going to address a common mistake that some people make. One of the factors in credit score is how long you have had lines of credit open, and how well you have paid on them. The longer a good credit line has been open, the better it is for your score. So in other words if you have had a credit card(s) for 5 years, 3 years and 1 year. Then you go ahead and transfer all your balances to the credit card you just got and CANCEL your other 2 cards you are going to NEGATIVELY affect your credit rating.



My advice, again consolidate your debt, using a promotional offer if necessary, then work on paying it off, the key will be not to use that credit card for ANYTHING else. Just keep paying down that balance. But keep the cards you have had the longest open, even if you do not use them anymore.

Let me know if you have any other questions

Rob

just a fyi.... I kinda work in the "credit business"

 

[SkaredShtles]

<snip>
But keep the cards you have had the longest open, even if you do not use them anymore.

Just make sure you read the fine print of the agreement on those old cards. Some will charge you a yearly fee if you *don't* use it at least X times per year/month/whatever.

 

[MTB_Rob_NC]

Just make sure you read the fine print of the agreement on those old cards. Some will charge you a yearly fee if you *don't* use it at least X times per year/month/whatever.

Might still be worth it, closing those accounts may affect your score up to 100 points! The 100 points is from an article I read last month, and I cannot find it at the moment. But just be careful with that kind of thing. 100 points in your FICO score can be HUGE.

 

[SkaredShtles]

Might still be worth it, closing those accounts may affect your score up to 100 points! The 100 points is from an article I read last month, and I cannot find it at the moment. But just be careful with that kind of thing. 100 points in your FICO score can be HUGE.

No - I was recommending if the fine print stipulates such a thing buy a pack of gum once a year with the old card.

 

[MouseMonkey]

Spunger-

are you a veteran or were either of your parents in the military? If so, check out USAA. They offer credit cards, banking and insurance. Since they are (I think) govt. subsidized to an extent, they are the closest thing to a "bro" business as I have ever seen in the banking industry. Rates are low, they don't try to screw you and people on the phone are friendly and cool.

Try this: Sometimes you can call your credit card company and request that they lower your interest rates. It sounds stupid, but they will do it sometimes if they want to keep you as a customer. It has worked for me in the past.

JMH

[/QUOTE]

 

[geargrrl]

one thing we ran into last year, is that we have ( had) really high unused limits on our cards. You know how they keep upping your limits if you keep a zero balance and pay it off all the time?

I forget what kind of loan we were apply for, maybe a line of credit for our company. Anyway, although we have a very nice credit score, we were told it would be better if we reduced some of our limits, as they affected the score in terms of "potential for debt". An example would be a sears mastercard that had a $10,000 limit that we've had for 20 years, but only put maybe $400 on a year, and pay it off right away.
gg

 

[Toshi]

one thing we ran into last year, is that we have ( had) really high unused limits on our cards. You know how they keep upping your limits if you keep a zero balance and pay it off all the time?

I forget what kind of loan we were apply for, maybe a line of credit for our company. Anyway, although we have a very nice credit score, we were told it would be better if we reduced some of our limits, as they affected the score in terms of "potential for debt". An example would be a sears mastercard that had a $10,000 limit that we've had for 20 years, but only put maybe $400 on a year, and pay it off right away.
gg

i think that was bogus advice. the lower your ratio of balances (even those paid in full each month) to your available credit, the better your score.

 

[geargrrl]

i think that was bogus advice. the lower your ratio of balances (even those paid in full each month) to your available credit, the better your score.

hmm, our banker told us that. You could be right, but also as owners of a LLC, they are much tighter with business loans than your average joe applying for a credit card, personal load, mortgage or line of credit. We were warned that when we quit being employees and owned our own company that the credit game would change and get more difficult for us.

 

[MTB_Rob_NC]

i think that was bogus advice. the lower your ratio of balances (even those paid in full each month) to your available credit, the better your score.

hmm, our banker told us that. You could be right, but also as owners of a LLC, they are much tighter with business loans than your average joe applying for a credit card, personal load, mortgage or line of credit. We were warned that when we quit being employees and owned our own company that the credit game would change and get more difficult for us.

You two are mixing information. Your ability to get a loan is not SOLEY based on your credit score. So although you may have a high FICO score, more sophisticated lenders, depending on what kind of loan you are looking for, will look at your available credit to income ratio.

So basically you are both right or wrong depending ink:

 

[Da Peach]

hmm, our banker told us that. You could be right, but also as owners of a LLC, they are much tighter with business loans than your average joe applying for a credit card, personal load, mortgage or line of credit. We were warned that when we quit being employees and owned our own company that the credit game would change and get more difficult for us.

you said personal load....