Credit Card Strategy...

[PricklyPete]

I have 3 regular credit cards and a best buy credit card. I stupidly raked up some debt on these while in college and have just now been able to start paying them off. Here is the layout:

Chase Balance: 0 APR: 19%
CapitalOne Balance: 0 APR 19%
MBNA Balance $5500 APR 19%
Best Buy Balance 0 APR 0%

I know these interests rates are rediculous, but I have tried to apply for lower interest rate cards (like 0% on balance transfers), but kept getting rejected because I had "too many open accounts with large balances". Now that I have my Chase, CapitalOne, and Best Buy cards paid off, I'm hoping that I'll have better luck to push the MBNA balance onto a 0% APR card...but we'll have to wait and see.

My question is: Should I go ahead and close my Chase and Capitalone cards? I have been a cardholder of Chase since 2000 and Capitalone since 2001. Will it help or hurt my credit to close those accounts? Just FYI, I've been a cardholder of my MBNA card since 1997.

I'm hoping that by closing my Chase and Capitalone cards and I will be able to open a new card that gives me a 0% APR on balance transfers and unload the MBNA account. Will closing the Chase and Capitalone cards hurt or help my chances of doing this?

Thanks for any useful input. And yes, I know I was stupid to run up the cc debt...but feel free to remind me.

 

[Codewiz]

Originally posted by: PricklyPete
I have 3 regular credit cards and a best buy credit card. I stupidly raked up some debt on these while in college and have just now been able to start paying them off. Here is the layout:

Chase Balance: 0 APR: 19%
CapitalOne Balance: 0 APR 19%
MBNA Balance $5500 APR 19%
Best Buy Balance 0 APR 0%

I know these interests rates are rediculous, but I have tried to apply for lower interest rate cards (like 0% on balance transfers), but kept getting rejected because I had "too many open accounts with large balances". Now that I have my Chase, CapitalOne, and Best Buy cards paid off, I'm hoping that I'll have better luck to push the MBNA balance onto a 0% APR card...but we'll have to wait and see.

My question is: Should I go ahead and close my Chase and Capitalone cards? I have been a cardholder of Chase since 2000 and Capitalone since 2001. Will it help or hurt my credit to close those accounts? Just FYI, I've been a cardholder of my MBNA card since 1997.

I'm hoping that by closing my Chase and Capitalone cards and I will be able to open a new card that gives me a 0% APR on balance transfers and unload the MBNA account. Will closing the Chase and Capitalone cards hurt or help my chances of doing this?

Thanks for any useful input. And yes, I know I was stupid to run up the cc debt...but feel free to remind me.

I would personally keep them open until you have paid off all your debt. Once you have it paid off then I would close one or two of the accounts. Wait 6 months to a year and try to get a card with better interest rates.

 

[TwinkleToes77]

Have you called MBNA to ask for a lower rate? They normally work with you on that. I had 19% with them and they lowered it to 14%

 

[Viper GTS]

Call them up. Tell them you're thinking about closing the account because you aren't happy with the interest rate.

Be prepared to follow through, if they say no then close the account.

Viper GTS

 

[PricklyPete]

Originally posted by: Codewiz


I would personally keep them open until you have paid off all your debt. Once you have it paid off then I would close one or two of the accounts. Wait 6 months to a year and try to get a card with better interest rates.

That wouldn't be a problem as I have no worries that I will use them...I just didn't know if credit card accounts that are not being used will hurt or help my credit score. It seems that if I paid off some credit cards and then immediately closed them would make a creditor worried that I do not trust myself to be responsible with my money.

About waiting 6 months...is this how long I should wait before applying for a 0% APR card for the MBNA balance? If so, it won't do me much good then as I expect to have most if not all of the balance paid off by then.

 

[PricklyPete]

Originally posted by: Viper GTS
Call them up. Tell them you're thinking about closing the account because you aren't happy with the interest rate.

Be prepared to follow through, if they say no then close the account.

Viper GTS

I was thinking about doing that...but I can't really follow through on closing the account since I don't have the funds on hand to do so. Any worthwhile tactics with regard to this?

 

[Monel Funkawitz]

I have some friends in the mob, so let me know if you need any help persuading them. Just let me know, and for a slight fee, it'll be taken care of. Whack a guy. Off a guy. Whack off a guy, cause I got a girl friend.

 

[darkshadow1]

wait are you paying a 19% APR on that $5.5K balance? You should see if either of your other cards have balance transfer promotions...I'm sure one of them will let you transfer at an APR less than 19% (I've seen anywhere from 0%-10%, but even 10% would be a lot better than 19%)

 

[Codewiz]

When you have it all paid off then you have the upperhand. You don't NEED the credit, you just want it. If you also pay off your debt every month then the interest will be a nonissue. The only time the interest really is an issue is when you are trying to get out of debt or have a very big unforseen expense.

They give low interest to people that probably don't need the interest rate. They give high interest rates to the people that would benefit the most from the low interest rates.

Become the person that doesn't require the low interest rate and you will get the low interest rate.

 

[blahblah99]

I would try to transfer that high interest rate balance over to another card with low interest rates, or wait for one of those "2.7% no transfer fee" type of deal and then transfer it over...

Playing this game, I was able to pull a $14,000 deposit into my bank for a car purchase and I have yet to pay a dime on interest rates. But I may have a better credit history.