@Anonymous wrote:
I am trying to figure out what to do about my HSBC credit card. The balance is around $5700 with a rate of 19.99%. I called and asked them to lower the rate but they refused to do that. My scores are currently TU 718 and EQ 678 (my husband's EQ is 698). We just received notice that they are going to change our interest rate. This is what it says: "For each billing cycle, variable APRs are calculated by adding a specified amount ('Spread') to the Index applicable to your Account." I read this as we are going to raise your rate! I can opt out and close the account (I plan on paying it off ASAP anyways) but I don't want to hurt my scores.
We are looking to buy a house in the next few months and I want our scores to be high enough to get a good rate.
What would you do?
Welcome to the forums.
Closing the account will not hurt your scores. It will continue to report for (usually) 10 years after closing and help your AAoA (Average Age of Accounts). You will keep the CL so your utilization will not be affected. If you are planning on paying it off quickly I personally would keep it open because once you get the balance down to zero it doesn't matter what the interest rate is. Use it every few months for a small purchase and always PIF before the due date to avoid any finance charges. If you are looking to tweak your scores before that mortgage application you might try this:
Optimal credit utilization for FICO scoring purposes seems to be:
Total revolving utilization > 0 and < 9%, the lower the better, and
Reporting a balance on less than half of your revolving TL's, and
Reporting a balance on half or less of all TL's.
All this is just my humble opinion. Good luck to you.
From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
You can do the same thing with hard work
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