Understanding FICO® Scoring

[financedude]

About 7 years ago, I had very good credit but also started a business.  I had maybe 54K in CC limits across 4 cards and never accumulated a balance.  At that time, I needed to preserve cash and eventually topped out on all cards.  I would pay the minimum down each month and then charge them back to near the limit.  After about a year of this, 3 of the 4 CC companies wrote a letter saying that if I wanted to keep the cards open the rate would jump astronomically, from about 8% to around 32%.  The other option, which I chose, was to close 3 of the 4, keep the current rates and just pay the minimum each month.  I was left with only one active card with a 3K limit.

Since then, I have paid each card monthly (min. balance only) with an occasional payment of 2 or 3K here or there to cut into the balance.  Right now, the balances on the closed accounts are about 18K and I still pay the minimum due on each closed card.  I have also built up about 20K in active, new CC account limits over the years.  I always pay the full balance due on the active CCs.

So here is my question, would it improve my credit score to fully transfer all of the closed CC balances to my active CCs?  Let me also include the following:

• I am also looking to get an auto loan on 50K or so (very little down payment) in the next 3 months
• I am looking to purchase a condo for about 500-600K in the next 6 months (putting down only about 3%)
• My current credit score is about 720
• Let’s assume the rate on the new CCs versus the closed ones is the same and I don’t need the credit access on the 18K on the current cards.  The only reason I would do this, if it all, is to improve my score

If I can provide any more detail, please let me know.

Thanks in advance.

[ryanbush]

no, you're utilization will stay the same and in return your score will stay the same.

this is unless your credit cards are reporting the their previous limits or are reporting the current balanace as their limit.  if they are doing either one of these your scores would take a hit since your total credit lime would go down but your balances would remain the same which would increase your utilization

[Autumnslight]

If the closed accounts are reporting their old limits and current balances, then these accounts are actually most likely helping your score and you shouldn't transfer them. In this case, the limit and balance would both be counted in your utilization. If you transferred the entire balances, then the limit on the closed accounts would no longer be counted, but the balance would, which would hurt your utilization.

[Shogun]

You're still taking a pretty good hit for that util.  Has anything changed lately?  You've been only making minimum payments but now you're wanting to buy a 50k vehicle and a 600k condo?   I'd seriously hold off that for a bit and pay those accounts down.