Please help! Newbie needs info on BoA credit line divided into two??

[IsItaGoodSpend]

I've been lurking for months, but finally am posting.  Thanks to this forum, I 've learned what I need to do to to regain the 720+ status of years past! 

A little history first.  DH and I remodeled our home.  We moved out and back in within 6 months, but had a 30 late with BoA.  That was four years ago.  Of course our interest rate went sky high.  We paid it off and sock drawered it.  Low and behold, here comes a BT for 3.99% for 9 months.  We transfered 3K to that card to "rebuild our good payment history" with them.  DH called and got the 24.99% interest rate reduced to 16.99 in March.  The rep said they couldn't come down anymore, but to call back in a couple of months.  So, yesterday he called.  He was transfered to a "Sr. Account Analyst" who couldn't reduce his rate, but said they could divide the 31.5K card into two without a hard or soft pull.  The first card staying at the (prime has dropped) 15.99% and the other card now at 9.9% fixed. 

I don't even know if we can unring this bell, but DH will try if you experts could help me with this:

Does our FICO score increase because now we have another cc with 0% util  on 15K or does it look bad because our CL went from 31.5K to 16.5 K on that card? 

[athensguy]

It depends on what other cards you have and how it impacts your average age. It will be easier to tell if you list your other accounts, including installment.

[IsItaGoodSpend]

Why average age?  Don't credit reports use length of credit history? 

I guess what I'm trying to find out is will there be an impact of the 31.5K credit line looking like it has been "reduced" outweigh the benefit of having another large credit line on 0% of 15K?

[fishbjc]

For the 9.9%, I'd go ahead and split it....in case you need the lower interest for materials, etc.

[fishbjc]

Average Age:  We have a sears card that was opened 27 years ago.  If that card were to go *bye-bye* we would lose some age and possibly fico points.

[Anonymous]

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IsItaGoodSpend wrote:

Why average age?  Don't credit reports use length of credit history? 

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FICO calculates your score using both average age of accounts and age of oldest account.

If the new account reports as brand new, that will hurt your average age, and possibly hurt your score as a result.

As far as utilization is concerned, you will have an additional card reporting 0%, which is good, but at the same time that means that the utilization on the card with a balance will be higher than it was previously, which is bad.

Whether it will hurt or how much is really not possible to say without knowing what the rest of your accounts look like (age and utilization on each).

Message Edited by cheddar on 06-12-2008 04:02 PM

[IsItaGoodSpend]

Here's the low down:

2810/31500           8.9% util (3.99% til Jan 09)

302/6050               5.0% util (not paying off yet-adding $ for in-law wedding trip 7/08) 

17548/20700       84.8% util (prime)

5489/10130         54.2% util (3.99% life of loan)

387/7500               5.2% util (0% until Jan 09)

0/3000                      0% util

26536/78880          33.64% util

change:

2810/16500  BoA "original" account

0/15000        BoA "new" account (done without soft or hard pull)

rest is same

Rep told DH he could "call back to move it around".

[athensguy]

I would do it.

[Anonymous]

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erchambers wrote:
I would do it.

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Agreed.  Doesn't look like it would hurt that much, if at all, from a utilization perspective.