YAF(Financial)T: I have 2 CCs, a better offer came in the mail...

[Descartes]

I'd like to get rid of one of my credit cards in favor of another, from the same bank, that has a lower interest rate. There seems to be much debate about the detriment of holding a balance, keeping an account open with a $0 balance, etc. Should I get this new card and transfer the balance leaving my old account open with a $0 balance, or should I just cancel the account?

Responses much appreciated.

 

Well, I honestly don't know if the situation you are talking about is detrimental to credit or not.

I held onto a capital one card with a $0 balance after I xfered it to Chase platinum. About the only thing that happened was Capital One ran a bunch of credit checks on me.
After about 2 months Capital one started to up my credit line and lower my apr.

If anything, I would think that consolidating your debt to one creditor looks better on a report.

 

[atom]

With only two credit cards, you should probably keep the old credit card active, especially if it's a credit line you've had for a while.

 

[RossMAN]

My wife just received a pre-approval offer from CitiBank Platinum VISA

$0 Annual fee
0% APR balance transfer for 18 months until May 2005.
1% Cash rebate on all purchases

Bada Bing!

 

[Vic]

Leave the old account open with a zero balance. Either put the old card in a secure safe, a safety deposit box, or (if you never plan on using it again) destroy it.

 

[Red]

Yes, 30% of your credit score is based on the average age of your accounts... so if you open up a new credit card, it can affect your score. If you close an old one, it can affect your score. Try to get 3 or 4 unsecured lines opened, use them and pay them off every month and never open up new accounts and your credit goes up, up, up!