So I need advice!

[traveler2005]

So since January I have gone from about 50000 in credit lines to over 100000. There is a local credit union that wants to issue me a low interest visa for 5000 but wants me to close several of my small accounts balance transfers to the new card. 

I wouldn't mind closing the small cards but several of them are my older accounts, I realize this won't affect my AAOA for 10 years, and if I close 5000 worth of small accounts it would be an even trade as far as utilization. 

my dilemma is I will be house hunting in about 3 months. Should I close the smaller accounts for the larger low interest account, before I search for a loan. The inquiry for the new card is already a couple of weeks old and they are just getting back to me and say the larger balance card is being offered but only with smaller account closure. 

Should I leave things as they are and turn down the offer and reapply after I find the house and get loan or should I close the smaller accounts and open the larger one. I already have numerous new accounts since January. My income will remain the same but I will then have a house payment to report after home purchase, which may affect me being able to get  the card after home purchase.

The CU is telling me that they think I now have too much available credit, that is why they want me to close a few smaller accounts.

Please give advice, any and all is welcome.  

[Jesse3581]

I would leave things alone.  Try not to make any changes to your credit profile for 6 months (at least) before going for the mortage.  Secondly, ask yourself why do you want this CU CC?  It's great that it's low interest, but ... do you carry balances?  If you do, you would be better off getting a 0% card.  Either a promotional offer or a balance transfer card and ... you know ... stop carrying balances.

[B335is]

I agree with Jesse. You would be able to get. 0% intro card without having to close out existing accounts. You can ask your existing lenders to consider APR reductions too. I really think this CU is leading you down the wrong path, I'd tell them goodbye.

[VirusCredit13]

I wouldn't say they are leading you down the wrong path. Closing accounts might not be neccesary for your personally, they are just letting you know what they prefer for their borrowers. In terms of FICO score, utilization is just a total available vs total used, but a lender when looking at a credit report may prefer to see one account with a $5000 limit rather than 10 accounts with $500 limits. 

Personally I wouldn't close any accounts just to get a new one, and I wouldn't want a new account on report anyways if searching for a new mortgage soon. 

[takeshi74]

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@traveler2005 wrote:

my dilemma is I will be house hunting in about 3 months.

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There should be no dilemma.  General advice is no new credit 6 months to a year prior to a mortgage.  Worry about it after your mortgage is finalized.  As you indicate, you already have numerous new accounts since January.

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@traveler2005 wrote:

There is a local credit union that wants to issue me a low interest visa for 5000 but wants me to close several of my small accounts balance transfers to the new card.

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Make sure you're considering utilization on the new card.  General advice is do not exceed 30%.  However, short term high utilization generally isn't an issue.  It's prolonged high utilization that could possibly get you in trouble.  That said, if you can pay down the BT's quickly then there's probably not much benefit to the new card but it's not clear if you have other considerations that factor in aside from the BT's.

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@traveler2005 wrote:

The CU is telling me that they think I now have too much available credit, that is why they want me to close a few smaller accounts.

Please give advice, any and all is welcome.  

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Whether or not to follow through with the card It's your call to make based on your needs/wants/preferences/priorities.  With 100K in available credit is a 5K line really that important to you?  Are you unable to pay off those smaller balances quickly?  Is there a long term need/want for that card?  If the new card trumps all other considerations then you'll have to address their concerns.

[Anonymous]

I wouldn't do anything 3 months out from trying to get a mortgage...don't close anything or open anything, how are your current scores? Depending on income and credit scores the mortgage lender may ask you to do the same (close some revolving available credit) but unless specifically asked by your mortgage lender don't touch anything would be my advice.