veerob982003 wrote:
I recently was approved for a $16k credit card with my local credit union. It has a great interest and I am very excited. I want to transfer the balances of "high risk" cards such as 2 capital one cards with 24%+ interest rates, etc. Is it a good idea to transfer these balances? My credit history with these cards (5) are perfect, but cards are mostly maxed out to the tune of $2500 - $3000. It doesn't make sense to keep them for the good credit but have the balances so high. I want to transfer balances and close them. Is this a good idea?
Thanks,
Vee
I wouldn't close the cards but keep them open and use them once or twice a year to keep them active. This will keep your FICO score healthy because it takes into consideration the debt to credit ratio.
You should do the BT if the interest rate on the new card is better than your CapOne cards now. You said in your post a great interest rate but what? I have an offer for a BT I'm considering of 6.99% which beats the installment loan I want to transfer that has an APR of 15%.
Plus, take into consideration BT fees. Some lenders don't cap them anymore. So if you have to pay 3% BT fee you will transfer more than 2500-3000.
