☆R♡GaN☆®
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well you will be eliminating the debt on all 3 credit cards and leaving one debt...which is good, that leaves you in a low debt ratio. Creditors look at this when evaluating your credit. And you'll only have one payment opposed to 3.
Therefore it would help |
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Chris M
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hard position, paying off the large credit accrued. IF you can do as you say, maybe your credit can stay untarnished. it should not hurt your credit, help I cannot say. walk that line lightly for awhile, good luck. |
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jdkilp
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It will hurt. Your best bet is to try to pay them down, one at a time. Start with the lowest one. Make min payments on the other two, and pay as much as possible on the low one. |
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Miss Know It All
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This would be a good thing .. I would highly recommend it..kr
Good Luck! |
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XXXXXXXXX
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It will not hurt your credit to transfer to balances to a new card, but closing the others will. Your credit score is based on several factors. You have history with the current 3, and you want to keep that. Part of it is also your credit to debt percentage. If you close the other 3 cards then that would leave with one open (new) account that is at 100% of your line. Transfer the balances, wait a year to establish a history with the new card and get the balance to under 50% then close the others if you wish. |
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glennroid
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Not necessarily. There's no reason to close these three accounts though, unless you have an annual fee.
If you can get a better rate with the transfer, do it. Be sure to pay it off as soon as you can. |
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suzukirider
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Of course not!!, even better!. You'll have on single payment and one interest rate verus making 3 payments and paying interest on 3 credit cards. You'll save a lot of money!!! |
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princessn1984
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As long as you are making monthly payments, it shouldn't matter. |
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SPIFIMAN1
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It will hurt your score for two reasons, first for the closed accounts and second for the high balance on your new account.
If you are not paying a huge annual fee why not keep the old account open and use them for every day things like gas and food, Be careful not to exceed 30% of your cretid limit in any given month and pay them in full before the due date.
A full 35% of your score is made up from pay history, so if you have had those accounts for a long time? I would not close them. |
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heatseaker
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don't know, but there is lots of info on the web about it:
http://articles.moneycentral.msn.com/CollegeAndFamily/MoneyInYour20s/9waysToBuildAKillerCreditScore.aspx
http://www.pueblo.gsa.gov/cic_text/money/creditscores/your.htm |
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mo2345
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that will actually help you alot, especially in the long run. If you are putting over the 50% the limit, it'll hurt you the first month, but the first month only. Just pay off that balance in full at the end of the month.
The three credit cards means 3 risks. 1 credit card means 1 risk, obviously 1 is better. The ideal number of credit cards is 2.
One monthly payment as opposed to 3
If you had the credit cards in good standing while you had them, it'll be reflected as good credit when you close them as long as the balance is 0.
1 credit card as opposed to 3 will be much more ideal to lenders you may apply with, they will see those 3 cards and think you already have enough credit.
Also, odds are one of those 3 credit cards are reporting in a way that is hurting your credit, ex. captiol 1 reports your current balance as you credit limit, which is hurting your score each month.
Many more reasons |
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Marwan H
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There are excelent articles about this subject:
Hope this will help. |
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internetguide8517
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I do know this, if you take the balances and apply them to your new card and it puts you over 50% of your total credit line on your new card, it could lower your credit score. |
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Mustbe
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What would be the best is keep all three...They don't mean you have to use them..shows you have 3 cards to show for a credit reference. |
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pinkcandyjunkie
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More than likely closing all of the cards will hurt your credit. Changing the balances onto a new card won't hurt your credit and neither will closing only one card. Keeping a few cards even if they hold no balance shows that you continue to hold credit with these companies so it looks better on your credit |
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lovergrrrl
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Two of the factors the make up your credit score are length of credit history and debt-to-credit ratio.
If you've had these credit cards for a long time, keeping them open, even with a zero balance, shows a credit history.
Debt-to-credit ratio takes into account how much you've charged on a card versus how high your credit limit is on the card. If you have 3 cards, each with a $900 limit and a $300 balance on them (33% debt-to-credit ratio), that looks better to creditors than one card with a $900 balance (100% debt-to-credit ratio.) |
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Jeff T
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If the bal of your new card is over 50% of your credit limit, it will hurt your credit. My suggestion is to transfer the balance into the card that has the highest credit limit with the lowest rate. Then DO NOT close the other three credit card accounts. Keep them at a zero balance but periodically buy something inexpensive... like lunch at McDonalds and then pay it off when the bill comes in. The reason why you do not want to close accounts that show a good payment status for a long time is that those accounts that are still open will help your credit scores. |
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