Applying for Zero Interest Credit Card

[Anonymous]

I will be applying for a zero interest credit card and am trying to get the highest amount I can get in order to pay off some higher interest credit cards.  I understand that closing out unused credit card accounts won't raise my FICO score but don't credit card companies take into account the fact that you could possibly begin charging on those accounts again, thereby raising the amount of debt you're in?  So if I have several zero balance credit cards with fairly high credit limits, would I be better off closing those accounts out before applying for the new credit card or would I be better off leaving them open?

Thanks!

[Anonymous]

I would leave them open.  Preserve a low utilization.

[Anonymous]

Closing the accounts in and of itself will not boost your score. In fact, it could lower it.

As lando said, when you close those accounts, the CLs no longer factor into your util for scoring purposes. If you have one account reporting a balance of $800 on a $1000 CL, and close three other accounts reporting $0 out of $1000 CLs, your overall utilization will go from 20 percent to 80 percent, and will tank your scores significantly.

Welcome to the forums!

Message Edited by FretlessMayhem on 07-23-2008 02:36 PM

[Anonymous]

You also look less risky to them if you have high credit limits but aren't using them. Some lender's may deny for being at sufficient credit for your income. It really depends on who you are looking to apply with.