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credit cards?

sjcstreamwood3@sbcglobal.net - 2006-04-06 15:05:06 - Credit

i have 2 visa credit cards that i have had for a few years.my credit score is very good and i would like it to stay that way.would it effect my credit score in a negative way if i got rid of the 2 cards and went with one with a lower apr thats offering me a higher credit limit than the 2 put together?

Best Answer:

Anytime you open a new revolving credit account (credit card), your credit score is affected negatively. It probably won't be by much, especially if you stay in good standing. Having more revolving credit (a higher credit limit or more cards with limits) is a negative toward your credit score. When you go to apply for a loan of some kind, the financial institution will look at how much total open revolving credit you have, because they see that as something you could potentially use. If it were me, I'd first contact the credit card company of one or both of the cards to see if you can get a higher limit and lower APR, since you are in good standing with them. Mention the other offer you got and say you would like to stay with them, but you are thinking of switching. Often for people with good credit and good payment history, they're willing to bring down your APR and up your limit to keep your business. If you're successful in doing that with one of your existing cards, be sure to cancel the other card and pay off the balance to keep your credit score from being adversely affected by so much revolving credit.

Answers:

No getting rid of two cards in favor of one with a lower apr will not reflect negatively on your credit score.

Anytime you open a new revolving credit account (credit card), your credit score is affected negatively. It probably won't be by much, especially if you stay in good standing. Having more revolving credit (a higher credit limit or more cards with limits) is a negative toward your credit score. When you go to apply for a loan of some kind, the financial institution will look at how much total open revolving credit you have, because they see that as something you could potentially use. If it were me, I'd first contact the credit card company of one or both of the cards to see if you can get a higher limit and lower APR, since you are in good standing with them. Mention the other offer you got and say you would like to stay with them, but you are thinking of switching. Often for people with good credit and good payment history, they're willing to bring down your APR and up your limit to keep your business. If you're successful in doing that with one of your existing cards, be sure to cancel the other card and pay off the balance to keep your credit score from being adversely affected by so much revolving credit.

If you get rid of the other two cards for the new one, don't call and have them cancelled. You can cut them up or whatever, but don't actually have them cancelled. When trying to get new credit, potential creditors will look for cancelled accounts, and they see cancelled accounts as a bad relationship with another creditor, which can hurt your credit a little bit.