@shorttough wrote:Hi,
i have two closed credit cards from 8 years ago with 2700 and 3700 amounts and sill making payments.
and open credit card with a balance of 3200.0
i also have other open credit cards wth limits close to 95,000.00
my overall utilization is about 5%.
should i BT the debt from closed accounts into the open credit cards, would it boost my score, or am i better off leaving the balance in the closed accounts.
thanks in advance.
OP is still making payments so the cards are obviously current and just on a glide path. Therefore, the first question HAS to be, what is the interest rate?
I have a Citi card which they closed, and it has a Forever 1.99% BT still being paid down. My payments are just over the minimum, but there is no way I am going to BT it away from the closed account because the APR is unbeatable. I had another Citi card, closed to freeze the 8% rate, which I recently BT'd to zero because the rate change made more sense.
It is not correct to think that a closed card with a balance MUST be paid immediately. The closed status merely means you cannot add to the open balance. You should pay within terms, but understand the cost of the funds compared to other alternatives.
@shorttough wrote:Hi,
i have two closed credit cards from 8 years ago with 2700 and 3700 amounts and sill making payments.
and open credit card with a balance of 3200.0
i also have other open credit cards wth limits close to 95,000.00
my overall utilization is about 5%.
should i BT the debt from closed accounts into the open credit cards, would it boost my score, or am i better off leaving the balance in the closed accounts.
thanks in advance.
IMHO pay them off.
@shorttough wrote:Citi at 13.49% monthly interests 30
and AMEX at 14.49% monthly intersts 50.0
i recently had a promotion of 0.00% until June 2018 from BOA, with 3% transaction fee.
hence i'm debating whether to transer over or not, since my util won't change.
You have about $6,500 to move. What is the limit on the BofA card?
What other cards do you have? What are their limits?
How fast will you be able to pay down this balance? Can you pay off $6,500 completely by June 2018, or nearly paid off? If not, that's not necessarily bad, but it helps to know what other cards are available which might be able to do a new BT when June 2018 arrives.
Actually, your utilization will change. With the $6,500 on two closed cards, that is in a nice, cozy isolated place away from your "Open" cards which are the main driver of your utilization. When I moved a good chunk of a closed balance over into an Open card, my utilization on open cards changed and I noted a small score drop from that. That's why I take issue with the recommendation to always move balances off closed cards.