I have an $5000 unsecured credit card that I opened up in December 2014 with a 29% Interest rate. I have always been on time with the payments and it has been completely paid off about 6 months ago, but the credit card has not been closed out. I also have an 10k unsecured credit line that I opened January 2015 with 7% interest rate. This credit line is almost maxed out, but I have always paid on time. Both the credit card and the line of credit is through the same bank. What I am looking to do is increase my credit line and the only way I can do that is is to close out the credit card and the old line of credit and transfer the balance of the line of credit to the new credit line, which I have been approved for 20k. So, I know that closing out accounts and opening new accounts can negatively affect my credit, BUT I don't know by how much and I don't know if the new increased credit will balance it all out.
A couple other things to note. According to MyFico
Credit Score 769
Payment History: Exceptional
Amount of Debt (45% utilization): Good
Length of Credit History (47 Months Average): Fair to Good
Amount of New Credit: Poor
Credix Mix: Very Good
I hope that paints a good picture of my situation. Now, I know that there may be someone who is concerned about why I am getting the credit line, especially since the current one is almost maxed out. So, without going into much detail, I am not in any financial distress, but I am looking to purchase some real estate and I may need the additional credit line to cover rehab and or carrying costs. If I don't need to use it, then I wont and I will just keep paying down my credit line (now that the credit card is paid off). It would also probably be good to note that I did just open up 2 other credit lines this week for my new business, but it is under my personal name since the business LLC has no credit history.
Thank you all in advance for input and advice.
