@Zethos wrote:
Hi. This is my situation. I currently have 4 credit cards. I don't carry a balance on any of them. I only use 1 of them and I pay off the balance every month. The other three are from several years ago, but I haven't closed them because it could negatively effect my credit score.
Here is why I'm in need of a new credit card. For the next year I am in a situation where I am going to have to carry a balance (while paying at least the minimum monthly payment.) All four of my current cards have a high interest rate. So I am needing to get a new card with a 1 year 0% introductory rate.
My Fico Score is 811 and I would like to maintain this. What effect would getting a new card have on my score? I know I might get an initial hit to my score when I first get it, but I'm wondering more about the long term effects.
Thank you very much for the help.
Hi...without more information, it's tough to tell what may happen to your score. Will it come back if this is temporary use? Yes.
You will take an initial small hit for the inquiry...but how much may depend upon whether this is your first inquiry in quite some time. It will vary among the 3 CBs how much it hits you...but it shouldn't be much.
You will also take a dip because of the new account. I've read here in the forums that the higher the score, the bigger the hit for the new account.
Both the small losses for the inquiry and the new account will wear off gradually as a year passes. Neither should count after a year.
A new account can bring down your AAoA. Without knowing what that is for you, it's difficult to determine the effect.
From what you say, carrying the revolving balance may have the biggest impact. Without knowing the credit limits on all your present cards plus the new card, we can't calculate what your utilization percentage will be. In calculating utilization, you will be glad you kept the other cards open.
So...bottom line? Can't tell you for sure without more information. Even with more info, it's tough to know for sure. You can track how doing this might affect you by reading some of the threads in the credit card forum.
