I just finished transferring all my credit card debt to one card with a fixed 5.99% for the life of the balance. It was about $11,000 I plan on paying this off within three years.
Now, I want to decrease my credit limits on my other cards. Would this hurt my credit score?
2007-07-21 05:57:48 · 5 answers · asked by swhatley7825 1 in Business & Finance ➔ Personal Finance
Yes it will lower your credit to debt ratio and thus your score, possibly quite a bit.
2007-07-21 06:24:37 · answer #1 · answered by Pengy 7 · 0⤊ 0⤋
No, but your credit score will lose a few points. When I was in debt and paying my bills on time my score was very high. Once I paid everything and only have my American Express card, my score has lost several points ! I do not need to borrow anything anymore, I am retired with a very good income. One would think my score would be way up, but it is not /
2007-07-21 06:01:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Credit card balance transfer is one of the preferred ways to get rid of credit card debt and is used by many people to get immediate relief. Credit card balance transfer essentially means that we transfer our outstanding balances from a high APR credit card to a credit card which offers low APR's. A 0% Intro APR credit card is the preferred credit card to transfer balances, but because of the widespread misuse of such credit card offers, credit card companies have withdrawn all such offers.
Indeed balance transfer saves a lot of money and can save things from going worse, but many people simply don't know the right way to do balance transfer. This article takes a look at the correct process to initiate and complete the balance transfer.
The first thing to look out, when a person wants to transfer his balances is a credit card which offers the lowest apr rates and lowest balance transfer fees. Many online credit card companies offer credit card comparisons. It is indeed a good practice to search for the credit cards using their services and decide on a credit card which offers the maximum savings. It is important to note here that balance transfer APRs depend on a person's credit history. If the credit card in question offers the lowest rates, it is definitely for those with the best credit ratings. There are different balance transfer apr's for people with lower credit ratings. So, it becomes imperative that one chooses the credit card which offers the lowest apr and balance transfer fees for his credit ratings. Read more from: http://www.credit-card-gallery.com/article/414,The_right_way_to_credit_card_balance_transfers
2007-07-23 23:59:00 · answer #3 · answered by kassy kemp 2 · 0⤊ 0⤋
No, easily not. What hurts is previous due or non-money. in fact, you're clever to decrease your decrease. That way in the adventure that your identification is stolen they might't get too lots from you. good pastime! thank you to think of forward! honestly, you do not want seven enjoying cards. decrease all of them up. circulate your card with a stability to a clean card which delivers 0 pastime for such countless months and pay it off. don't be in debt!
2016-12-14 15:26:13 · answer #4 · answered by ? 4 · 0⤊ 0⤋
yes, it definitely will. a big component of you credit score is % of credit being utilized. just stop using the credit lines, but dont get rid of them or decrease them.
-Jeff
http://savingmoney.iblogger.org
2007-07-21 06:00:54 · answer #5 · answered by Anonymous · 1⤊ 0⤋