Will this hurt or help my credit??

Question

i currently have three credit cards. if i where to take the balance on these three credit cards and place them onto a new card that could hold the amount on all three of these and then close the three old ones, will this hurt or help my credit??

Answer 1

well you will be eliminating the debt on all 3 credit cards and leaving one debt...which is good, that leaves you in a low debt ratio. Creditors look at this when evaluating your credit. And you'll only have one payment opposed to 3.

Therefore it would help

Answer 2

If the bal of your new card is over 50% of your credit limit, it will hurt your credit. My suggestion is to transfer the balance into the card that has the highest credit limit with the lowest rate. Then DO NOT close the other three credit card accounts. Keep them at a zero balance but periodically buy something inexpensive... like lunch at McDonalds and then pay it off when the bill comes in. The reason why you do not want to close accounts that show a good payment status for a long time is that those accounts that are still open will help your credit scores.

Answer 3

It will not hurt your credit to transfer to balances to a new card, but closing the others will. Your credit score is based on several factors. You have history with the current 3, and you want to keep that. Part of it is also your credit to debt percentage. If you close the other 3 cards then that would leave with one open (new) account that is at 100% of your line. Transfer the balances, wait a year to establish a history with the new card and get the balance to under 50% then close the others if you wish.

Answer 4

that will actually help you alot, especially in the long run. If you are putting over the 50% the limit, it'll hurt you the first month, but the first month only. Just pay off that balance in full at the end of the month.
The three credit cards means 3 risks. 1 credit card means 1 risk, obviously 1 is better. The ideal number of credit cards is 2.
One monthly payment as opposed to 3
If you had the credit cards in good standing while you had them, it'll be reflected as good credit when you close them as long as the balance is 0.
1 credit card as opposed to 3 will be much more ideal to lenders you may apply with, they will see those 3 cards and think you already have enough credit.
Also, odds are one of those 3 credit cards are reporting in a way that is hurting your credit, ex. captiol 1 reports your current balance as you credit limit, which is hurting your score each month.
Many more reasons

Answer 5

More than likely closing all of the cards will hurt your credit. Changing the balances onto a new card won't hurt your credit and neither will closing only one card. Keeping a few cards even if they hold no balance shows that you continue to hold credit with these companies so it looks better on your credit

Answer 6

Two of the factors the make up your credit score are length of credit history and debt-to-credit ratio.
If you've had these credit cards for a long time, keeping them open, even with a zero balance, shows a credit history.
Debt-to-credit ratio takes into account how much you've charged on a card versus how high your credit limit is on the card. If you have 3 cards, each with a $900 limit and a $300 balance on them (33% debt-to-credit ratio), that looks better to creditors than one card with a $900 balance (100% debt-to-credit ratio.)

Answer 7

I'm no longer one hundred% certain...however I consider this would harm your credit score. I bought into plenty of bank card debt a couple of years in the past. I was once a pupil and dealing a non-paying internship, so i had no cash to repay the matters I was once purchasing on credit score. I despatched in repayments past due at all times. After I ultimately bought a role (and a bit aid from my dad and mom on the time), I started paying the whole thing off. First with the min. repayments..after which increasingly. Eventually I was once sending within the complete quantities. It took a while, however I paid off everyhting and raised my credit score ranking again up. I have a buddy who had debt and went to a CCC earlier than I even knew him. To these days, his credit score remains to be worse then mine. By going to a CCC, I consider it makes collectors consider that you do not know the way to manage your budget and also you might be a higher danger for an extended time. If you could have entry to a monetary planner, take a look at requesting a reliable opinion. Also, possibly appear into doing a stability switch to get your curiosity price down. Some firms have as little as three% and even zero% on transfers. Just be mindful of the nice print. Sometimes the charges are best well for a short while. Also, whilst you switch a stability, they typically cost you a percent quantity on what you're shifting over. Some firms have a cap on what they are going to cost; others do not. For instance, when you switch $8000 and the organization expenses one million% at the quantity, you could have $eighty further in your bank card. Some firms cap at $50. So even though you're shifting $8000, you do not must pay that additional $30. Many folks do not observe they've this additional cost, and preserve shifting balances whilst the promotional time runs out. Well they preserve including increasingly debt with out even noticing it. It would no longer look like a logical factor to do- including extra debt than you relatively must. But it is going to determine bigger ultimately on account that of the curb curiosity price. You must mess around with the numbers and spot what's the first-class factor so that you can do. Best of success

Answer 8

It will hurt your score for two reasons, first for the closed accounts and second for the high balance on your new account.

If you are not paying a huge annual fee why not keep the old account open and use them for every day things like gas and food, Be careful not to exceed 30% of your cretid limit in any given month and pay them in full before the due date.

A full 35% of your score is made up from pay history, so if you have had those accounts for a long time? I would not close them.

Answer 9

What would be the best is keep all three...They don't mean you have to use them..shows you have 3 cards to show for a credit reference.

Answer 10

I do know this, if you take the balances and apply them to your new card and it puts you over 50% of your total credit line on your new card, it could lower your credit score.