I'm paying down all of my balances on my credit cards and 1 charges a $6 monthly fee and 1 charges an annual fee of $30 I think. The 1 that charges the monthly fee has the highest limit and the 1 that charges the annual fee has a very low interest. It seems like the cards with the highest interest have the highest limits. I still have other cards that have lower interest and their limits are lower. Should I still close those cards out after I get my condo?? My counselor told me not to close them now cause it will hurt my score..
2007-12-28 12:50:33 · 8 answers · asked by Cute T 1 in Business & Finance ➔ Credit
If you are planning on buying a condo, don't close any accounts yet. The ratio of revolving credit card debt to available credit limits is a big part of your credit score. You should keep the debt below 30%. Getting them all paid off is even better, especially if you are looking for a mortgage.
After you get your condo, close that monthly fee card. At $6 per month that's $72 a year! I recommend you keep the two oldest major credit cards that do not have monthly or annual fees. Only keep store or gas charge cards that you have some special purpose. Close the rest, but only after you get your mortgage.
If you only charge what you can afford to pay in full every month, the interest rate makes no difference. After 7 months to a year, they will start automatically increasing your credit limit. In fact, you may just get the interest rate reduced too.
2007-12-28 13:09:25 · answer #1 · answered by bdancer222 7 · 0⤊ 2⤋
Close your cards with a high interest rate. Stick to the cards that chare a monthly or annual fee but have a low interest rate. In the long run you will save money. Better yet though, get a card with no monthly or annual fee with a low interest rate...this is the way to go.
2007-12-28 12:58:58 · answer #2 · answered by Debi 2 · 0⤊ 1⤋
You are paying off all the balances on your credit cards so it does not matter if the interest is low or high.
I would contact the credit card comapnies and switch to no fee credit cards so that I can keep these without having to pay extra money without affecting credit score.
2007-12-28 13:38:13 · answer #3 · answered by Justin 2 · 0⤊ 0⤋
You might want to transfer your balance to a card with a low rate of interest that could save you some money.
2007-12-28 12:59:03 · answer #4 · answered by Barry S 2 · 0⤊ 0⤋
Close on your condo then close the accounts. It will hurt your score a little but not much. after about a years on time payments your score will be better than it is now in most cases.
2007-12-28 13:33:55 · answer #5 · answered by Anonymous · 1⤊ 0⤋
If you can afford it, let it be. Closing credit card accounts put a ding on your credit score.
If not, then close only one.
2007-12-28 13:32:08 · answer #6 · answered by Aditya G 1 · 0⤊ 2⤋
Look for cards that charge you nothing if you don't use them.
2007-12-28 13:03:18 · answer #7 · answered by prusa1237 7 · 1⤊ 1⤋
I am sure you should wait after you get what you want so it does not look fishy.
2007-12-28 13:22:27 · answer #8 · answered by Alan W 2 · 0⤊ 2⤋