3 Cards - Debt to Credit Ratio If I Close One.

[Anonymous]

I have three credit cards. The credit limits and balances are: Credit Card A) - Limit - $1000 Balance - $891.10 Credit Card B) - Limit - $1000 Balance - $554.22 Credit Card C) - Limit - $ 300 Balance - $104.73 I want to pay off and close credit card (C) because there is an annual fee of $59 and then pay down credit cards (A) and (B) to a debt to credit ratio of 30% or less. I have a perfect payment history on all three cards. I am wondering, though, if it would be worth the $59 annual fee to my credit rating to leave the account open on card (C) so that I'd have a higher total credit amount. Thanks for your help.

[Anonymous]

You are currently sitting at 67% util. If you pay off card (c) and close, you will increase your util to 72%. When does the AF hit? I would take the hit on the AF and shred the card. Pay down card (a)(b) to 50%. Get a gallon size freezer bag and fill it 1/2 with water. Insert the remaining cards and place into your freezer until you pay off the remaining balances.

Message Edited by FaircreditguyFL on 04-12-2008 05:03 PM

[modernsurrender]

Either way your utl is pretty bad, from my POV since you owe less than twice the AF, I'd just pay off card C and close it before the AF hits, and then pay down the rest.  You're already getting points off for high util so I doubt the 5% difference would be that big a deal.

Have tried getting the AF waived?  Or getting a CLI to make it a little more worth the AF?  Do you really truly want to close the card, or do you just not want to pay the AF?

[Anonymous]

Keeping card (c) open with $0.00 reduces util to 63%, coupled with a $300 payment to card (a) or a $254 payment to card (b)reduces over all util to 50%.

[Anonymous]

>Get a gallon size freezer bag and fill it 1/2 with water. Insert the remaining cards and place into your freezer

LOL. I like that!

[Anonymous]

Hi Markos, welcome to the forum!

I agree with the others...with only 3 cc's reporting, closing one card will hurt you.

Work on getting the utilization down below 10%, and let those low balances start reporting. Pull your FICO scores and see where you stand.

You should get a substantial score rise when you pay the balances down. Right now they are hurting you.

When your FICO scores are high enough for you, apply for 1 or 2 more cc's. If approved, THEN close the card...but of course with a $0 balance!

What are your FICO scores? Now would be a good time to pull all 3 reports as there is a 25% discount for the month of April.

I'm pulling mine toward the end of the month, after all my ccc's have updated to the CA's.