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Consolidating Credit

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Anonymous
Not applicable

Consolidating Credit

I was using the score simulator today and when pushing the "best action to take" it came up with
 
Best Action - Get a New Credit Card and Consolidate Balances to It
 
I surprised in this. I thought for sure it was going to say lower your cc utilization. Its at about 70%
 
So is it saying to apply for a bigger card and transfer balances to it? I'm not real familiar with balance transfers. Any help and advice would be great! TY!
Message 1 of 5
4 REPLIES 4
Creditaddict
Legendary Contributor

Re: Consolidating Credit

well basically if you did this you would be bringing Util down becuase you would be adding a whole another credit line. and if you could get say 5 balances onto 1 card, then you would have 5 cards with 0 balances, which I believe also helps your scores.
Message 2 of 5
Anonymous
Not applicable

Re: Consolidating Credit

Or get a personal loan and wipe all your revolving debt off the map. That will boost it more than another credit card. Smiley Happy (shh, just not a consolidation installment but a Personal installment, there's a difference) If you apply for an installment tell them it's for personal use so they don't title it consolidation.

But best action would be to pay down debt and not apply for a new card. The new account will drop your score at the same time too even though it lowers UTL. If you can't lower UTL soon, consolidation to a new card could do it....

BUT getting a CLI and transferring it to an existing card is also better than applying for a new card. So might be better to request a CLI first for BT and request a special BT rate.

Ultimately, lowering your debt is first if you can pay it down.
CLI to move all to 1 card.
Personal Loan to wipe out revolving debt.
And probably last choice would be to apply for a new card.... Unless you wanted a new card and then applying would be for a totally different reason and that would be ok.

Just my opinions.

Message Edited by ilovepizza on 03-23-2008 10:55 PM
Message 3 of 5
Anonymous
Not applicable

Re: Consolidating Credit

Well this is my deal...I only have 2 cc's to begin with. One is   Capital One with an 800 limit, but it is restricted right now because I did not pay it for a long time. I 've paid on time for almost 3 YEARS now, but they still wont lift the restriction. So pretty much it sits there, but it is one of my oldest account, so I do not want to close it, balance on it is $400.
The second card I have is an Orchard Bank Card. I requested a CLI this morning and got $100. Whoo Hoo. Smiley Sad But  the CL is $600 on that one and there is a $350 Balance on that one.
 
So I really don't have much CC  Debt. I think I will just pay down both Cc's and if my score goes up, maybe see If I  can get a card with a bigger CL and then leave it at that. But i don't know!!! I'm not good at this...wah  lol, ty for your responses
Message 4 of 5
Anonymous
Not applicable

Re: Consolidating Credit

How long has it been since you made payment in Cap1?
Message 5 of 5
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