First of all, I'm a junior in college. I'm clueless about finances. I have three high interest rate credit cards. One has a $1500 limit, and I have about $1200 on it. One has a $500 limit, and I have about $400 on it. Another has a $300 limit, and I have about $200 on it. Most of this is due to medical bills. I know that medical bills are a priority to pay off, so I'd rather pay a monthly credit card bill than default on those. I've never been late on a credit payment. My credit score with Equifax is 625. I'm trying to my financial situation. My mother told me to apply for a bunch of lower interest rate credit cards and then transfer my balance to it and close my other credit cards, but I'm finding out that looks bad with so many inquiries into my credit and with closing my credit card accounts that have been open the longest. I'm really confused. I don't know what to do. Advice?
2007-07-07 11:10:34 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Your mom was right about finding a credit card (or two) to balance transfer to.
Though I don't agree with closing the existing accounts - just don't use them !!!
Be very thorough in reading balance transfer terms for the cards you apply for and receive.
The company may or may not expect you to pay a balance transfer fee. They may expect you to pay a small interest rate or it may be a zero rate. etc., etc., etc.
And - be sure to keep an eye on the payoff date. If you do not have them paid off by that date you will be hit with the default interest rate.
2007-07-07 11:38:14 · answer #1 · answered by echo 7 · 0⤊ 0⤋
If you can transfer the high interest rate cards to a lower interest rate card, that's a good idea. Don't close any accounts, that way you keep your oldest cards in tact for your future credit history.
Inquiries only last stay on your bureau report for two years, and the older they are the less they count.
The bigger question is that if you've maxed out your three cards, do you have anyway from keeping yourself from doing it with additional cards? It's so easy to spend, and difficult to pay off. Are you done paying medical bills? If so, pay off these cards, cut them up and live off the money you have...it's summer - get a job - even at $7-8 an hour, you'll make enough to pay off the cards.
2007-07-07 11:34:48 · answer #2 · answered by LaLa 3 · 0⤊ 0⤋
Med bills are low on the credit score, and if under a hundred piece basically mean nothing for those if you send in $5 a month there is nothing they can do to you. The more you apply for credit the lower your score, just keep paying the ones you have on time and get the balances down
2007-07-07 11:21:07 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋
Try for a debt consolidation loan to help pay off those higher interest credit cards. A bank or credit union would be a good place to start and then determine to keep perhaps one of your credit cards. As long as you keep up with your payments, you'll do OK.
2007-07-08 03:47:10 · answer #4 · answered by JLB 2 · 0⤊ 0⤋
As you are a student go for some type of student scholarships. You can apply for free in some websites. Then about your cards you can consolidate it with the help of a debt consolidator but dont go for everyone see whether they are BBB registered or not and if you see it apply they will help you. Thirdly there are some cards with 0% apr. Discover have some credit cards like this and there are rewards also so you can go for them.
To know more you can visit
http://www.easystudentloan.blogspot.com
and
http://www.creditcardbiz.blogspot.com
2007-07-07 12:10:40 · answer #5 · answered by Pamella A 2 · 0⤊ 0⤋