Paying off cards with card

[Anonymous]

I opened a new credit card about 5 months ago and have never used it. I was going to close it, but now I understand that by doing so it will hurt my score. Would it be a good idea to pay off other longer standing accounts with this one card, and then just pay this card off. My other cards will have nothing on them, and they have been open for more then 24 months?

[MidnightVoice]

Just keep all your cards open, and use them occasionally.  Keep the total level of the balances at less than 10% (but not zero) of the total available credit.

Then just sit and wait 

[Anonymous]

But should I pay off my older cards with a newer card? Would this help my score at all??

[MidnightVoice]

Opinions may vary, but TU says on my report:

Your FICO score evaluates your total revolving credit balances in relation to your total credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.

Keep this in mind: This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.

[Tuscani]

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MidnightVoice wrote:

Opinions may vary, but TU says on my report:

Your FICO score evaluates your total revolving credit balances in relation to your total credit limits on those accounts. In your case, this ratio of balances to credit limits is too high.

Keep this in mind: This credit usage ratio is one of the most important factors to your FICO score, so you should work on paying down your balances. Your FICO score looks at the ratio of revolving debt, but not in which accounts the debt resides. Therefore, consolidating or moving your debt from one account to another will usually not help your FICO score since the same total amount is owed.

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Yes and no... I say that because a maxxed card looks worse than having that same debt across several cards. Having the debt spread out evenly on several cards properly distributes your util.

Remember though, do whatever saves you the most money.    

[MidnightVoice]

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Tuscani wrote:

 I say that because a maxxed card looks worse than having that same debt across several cards. Having the debt spread out evenly on several cards properly distributes your util.

Remember though, do whatever saves you the most money.    

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Agreed - I was thinking of well below max in general, I must admit.  Good point