Right now I have a credit card with a very high rating, nearly 33% because I missed a bunch of payments. Now I am paying off the debt but I just received an offer from Capital One to switch the acocunt to them with a 13% interest rate.
I know that holding a credit card is better for your credit rating than cancelling it, but what about switching the account to a new provider?
2007-11-02 06:20:46 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
Yes, switch just don't close your old account simply use it for everyday things and pay it off in full before the due date.
You will not only save money in interest but you will have another paid as agreed line of credit.
2007-11-02 06:36:07 · answer #1 · answered by ? 7 · 2⤊ 0⤋
Right now your credit is suffering because of you missing payments! You should look into this website and read it all, especially the "how credit scoring works" section!
I would be careful of Capitol One though! Once these guys found out about my credit history, they pushed my interest rate to 28% and forgot all about their offer of 13%!!
Get the RSS feed for this site too. They are always adding new and relevant information!
I got my credit score up from 485 to 720 in a little over a year!
There are sponsored credit card lionks that will offer you a card too that I think are much bettere than Capitol one!
2007-11-02 06:40:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Switching should have no impact. In the contrary if you get a new credit limit with the new card it will show a better credit (as long as you keep paying back the amount owed). Make sure you read the fine print when you roll over very often they have a teaser rate, and processing fee, or other limiting steps.
Do not close the old card.
2007-11-02 06:27:47 · answer #3 · answered by crapaudblanc 4 · 0⤊ 0⤋
Length of history works in your favor. Keep the old card active so that you get the points on your score for the old history. You also get points for using only a small amount of your total lines. Move the balance to the new card but don't close the old one.
2007-11-02 06:32:04 · answer #4 · answered by Ted 7 · 0⤊ 0⤋
You could keep the old card open and don't use it. Old credit is better for your score then new credit. You could still transfer the balance to the new card so it will be easier to pay it off, but keep the other one open.
2007-11-02 06:36:23 · answer #5 · answered by Mary C 1 · 0⤊ 0⤋