@Anonymous wrote:I have three credit cards. One has a large balance (near max) but only 8% rate. One is paid off monthly. I`ve had those for a few years. The other one, which I have probably had for two years, has > $6,000 on it and now a high interest rate. I am now able to pay this last one off over the next 7-12 months.
Should I do a balance transfer to Chase Slate (no transfer fee and 0%) while I am paying it off, to save about $350-400 in interest? (I can also pay it off faster, due to more going to principal.) But I guess the new card will temporarily lower my average credit card account length.
Should I get rid of the credit card it is replacing? I would rather only have 2 cards, ultimately, because I have a history of not being disciplined about using them. However, I have improved significantly and know that having more active cards with low balances will improve my FICO score.
How often do I need to use a card for it to improve my FICO score significantly, as opposed to not using it (because it has a large balance)?
In 3-4 years, I want a great FICO score when I will probably buy a house. It is currently a little over 700.
Thanks in advance for any advice you can offer.
1. You should set priorities. If your concern is money, put the balance where the interest rate is lowest or nonexistent. If your concern is your scores, concentrate on having lowest utilization percentages (a) overall, and (b) in each account.
2. I don't think you should cancel an account, just "sock drawer" it.
3. I don't think your FICO score is affected one way or the other by how often you use a card.
4. The best thing you can do to get your scores up in 3 years is pay your cards down and don't get any new ones.
