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Makarios
Posts: 1
Registered: ‎04-12-2008
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3 Cards - Debt to Credit Ratio If I Close One.

I have three credit cards. The credit limits and balances are: Credit Card A) - Limit - $1000 Balance - $891.10 Credit Card B) - Limit - $1000 Balance - $554.22 Credit Card C) - Limit - $ 300 Balance - $104.73 I want to pay off and close credit card (C) because there is an annual fee of $59 and then pay down credit cards (A) and (B) to a debt to credit ratio of 30% or less. I have a perfect payment history on all three cards. I am wondering, though, if it would be worth the $59 annual fee to my credit rating to leave the account open on card (C) so that I'd have a higher total credit amount. Thanks for your help.
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FaircreditguyFL
Posts: 665
Registered: ‎03-31-2007
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Re: 3 Cards - Debt to Credit Ratio If I Close One.

[ Edited ]
You are currently sitting at 67% util. If you pay off card (c) and close, you will increase your util to 72%. When does the AF hit? I would take the hit on the AF and shred the card. Pay down card (a)(b) to 50%. Get a gallon size freezer bag and fill it 1/2 with water. Insert the remaining cards and place into your freezer until you pay off the remaining balances.

Message Edited by FaircreditguyFL on 04-12-2008 05:03 PM
Established Contributor
modernsurrender
Posts: 805
Registered: ‎02-01-2008
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Re: 3 Cards - Debt to Credit Ratio If I Close One.

Either way your utl is pretty bad, from my POV since you owe less than twice the AF, I'd just pay off card C and close it before the AF hits, and then pay down the rest.  You're already getting points off for high util so I doubt the 5% difference would be that big a deal.
 
Have tried getting the AF waived?  Or getting a CLI to make it a little more worth the AF?  Do you really truly want to close the card, or do you just not want to pay the AF?
Start 2/2008: TU 495 || EX 539 || EQ 528
Now 5/2013: TU 716 || EX ??? || EQ 702

Slate: $5000 Simplicity: $5000 David's Bridal: $3500 SW Chase: $3000 FNBO: $3000 Barclay NFL: $2500 BofA: $2400 Discover IT: $1700 Walmart: $1500 Victoria's Secret: $1000 Cap1: $750 Amex Zync: NPSL
(2 derogs to go until I'm squeaky clean in 2014!)
Established Contributor
FaircreditguyFL
Posts: 665
Registered: ‎03-31-2007
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Re: 3 Cards - Debt to Credit Ratio If I Close One.

Keeping card (c) open with $0.00 reduces util to 63%, coupled with a $300 payment to card (a) or a $254 payment to card (b)reduces over all util to 50%.
Established Contributor
beenthere
Posts: 971
Registered: ‎01-13-2008
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Re: 3 Cards - Debt to Credit Ratio If I Close One.

>Get a gallon size freezer bag and fill it 1/2 with water. Insert the remaining cards and place into your freezer
 
LOL. I like that!
1-14-08....... TU=683, EQ=667, EX=666
7-04-08....... TU=688, EQ=678, EX=682.......
.......4 of my 5 cards and a new car later.
2/13/09 and forever EX 693
Senior Contributor
Sylviatob
Posts: 4,596
Registered: ‎09-14-2007
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Re: 3 Cards - Debt to Credit Ratio If I Close One.

Hi Markos, welcome to the forum! :smileyhappy:

I agree with the others...with only 3 cc's reporting, closing one card will hurt you.

Work on getting the utilization down below 10%, and let those low balances start reporting. Pull your FICO scores and see where you stand.

You should get a substantial score rise when you pay the balances down. Right now they are hurting you.

When your FICO scores are high enough for you, apply for 1 or 2 more cc's. If approved, THEN close the card...but of course with a $0 balance!

What are your FICO scores? Now would be a good time to pull all 3 reports as there is a 25% discount for the month of April. :smileywink:

I'm pulling mine toward the end of the month, after all my ccc's have updated to the CA's.
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