Open card with lower APR or keep current card?

[lysistara]

I opened a Visa Card 3 years ago at 28% interest due to a lack of credit history. I paid every monthly balance off in full until 2 months ago. You see, I had a medical emergency and placed $600 on this card. I paid off about $200, but with that high interest rate it barely made a dent and the new balance is around $1k. I don't have the 1,000 to make this payment in full. In the meantime, I was offered a 13% APR from my personal bank visa and 0% transfer. I then contacted my current card requesting to negotiate the 28% rate lower due to my current credit score/increase to 699. They would only go to 27%. So, I am considering switching cards to the lower interest option (card #2). However, I am assuming my FICO will be docked some points from closing the other account and opening this new one. Any advice on what to do? THANKS!!!!

[Anonymous]

Move the balance - leave the card open.

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@lysistara wrote:
I opened a Visa Card 3 years ago at 28% interest due to a lack of credit history. I paid every monthly balance off in full until 2 months ago. You see, I had a medical emergency and placed $600 on this card. I paid off about $200, but with that high interest rate it barely made a dent and the new balance is around $1k. I don't have the 1,000 to make this payment in full. In the meantime, I was offered a 13% APR from my personal bank visa and 0% transfer. I then contacted my current card requesting to negotiate the 28% rate lower due to my current credit score/increase to 699. They would only go to 27%. So, I am considering switching cards to the lower interest option (card #2). However, I am assuming my FICO will be docked some points from closing the other account and opening this new one. Any advice on what to do? THANKS!!!!

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[lysistara]

Tim: Thanks SO much for your help. One further question. Looking at my credit report, I have 2 credit cards in good standing (one which has been paid off in full every single month for the last 10 years), but then one card that was closed down by credit grantor 5 years ago and paid off in full via settlement by me (now closed). There is one other card that was closed by credit grantor 3 years ago. They refused to do a settlement so I have been saving money to pay off the $1200 balance. My credit score is a 699 despite all this. Will keeping the card with the high interest rate open while opening the card with the low interest rate, hurt my score due to too many cards being open (a total of 3 in good standing open, and 2 that had been closed by grantor). Thanks! You're the best! Lysistara

[Anonymous]

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lysistara wrote:
Tim: Thanks SO much for your help. One further question. Looking at my credit report, I have 2 credit cards in good standing (one which has been paid off in full every single month for the last 10 years), but then one card that was closed down by credit grantor 5 years ago and paid off in full via settlement by me (now closed). There is one other card that was closed by credit grantor 3 years ago. They refused to do a settlement so I have been saving money to pay off the $1200 balance. My credit score is a 699 despite all this. Will keeping the card with the high interest rate open while opening the card with the low interest rate, hurt my score due to too many cards being open (a total of 3 in good standing open, and 2 that had been closed by grantor). Thanks! You're the best! Lysistara

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Eh....I don't think it will have too much of an impact, to tell you the truth.  The inquiries will temporarily give you a hit, but it's good to add to your accounts in good standing.  Make sure to do a Pay For Delete Letter for that closed account!  You might see a positive spike in your score.

[Anonymous]

Nope-
Having the available credit will be a PLUS
Having fewer accounts with balances a PLUS