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credit cards pt 2
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| JD8180 |
so after that whole debate about credit cards, i decided it was time i upgrade to a better card. right now i have a college citibank card with a 15% or so interest. i noticed they have a diamond preferred card which can have apr as low as 7% (obviously depending on your credit report.. gets to as high as 11%). so what is the best way to make the switch of credit cards? do i:
a. just open the second one, and start using that one.. while i pay off my college card completely and close it.
b. pay off my college card completely, close it, then open the new card.
c. transfer balance? (i wouldn't want to go this route as i'm sure there are plenty of fees)
what are your opinions that will be best in regards to my credit score? |
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| KiNeTiC ENeRgY |
| close your account, pay it off (yes u can close an account and then pay it off...so u won't be tempted to use it) and then sign up for the WoW credit card ;) |
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| gehzumteufel |
| Is the diamond card with citi also? If so you can usually call and get your account upgraded or rolled into the other program. Otherwise, pay it off first, then open the new one. Wait 6 months and close the old one. |
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| tubularbills |
| don't close it. if you have been making payments on it regularly, and have not been late...simply having an empty account will not hurt you...in fact, i was going to close a capital one account once, cause i never use it, turns out capital one was giving me good credit points because i was in good standing with them. use it once, pay it off fast. its a good way to earn good credit. |
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| gehzumteufel |
| quote: | Originally posted by tubularbills
don't close it. if you have been making payments on it regularly, and have not been late...simply having an empty account will not hurt you...in fact, i was going to close a capital one account once, cause i never use it, turns out capital one was giving me good credit points because i was in good standing with them. use it once, pay it off fast. its a good way to earn good credit. |
Depends on how many cards you have. You my friend have too many for your income level. Even after your raise you will have too many.
JD: He is right if you only have that card, but honestly, you need to dump the student card. Those always have the worst interest rates. |
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| jonSun |
15% :wtf:
after 6 months call them & ask if they can lower your interest rate. It usually works. |
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| KiNeTiC ENeRgY |
| quote: | Originally posted by tubularbills
don't close it. if you have been making payments on it regularly, and have not been late...simply having an empty account will not hurt you...in fact, i was going to close a capital one account once, cause i never use it, turns out capital one was giving me good credit points because i was in good standing with them. use it once, pay it off fast. its a good way to earn good credit. |
It may only hurt him if he plans to get a loan. They may or may not like that he has a certain amount of credit open to him. I would think its much safer to close the account, then pay it off and get the better card he wants. I know for a fact that getting grad/med school loans, they do not like u having open accounts and a lot of credit with a low income ratio. |
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| THE_Chris |
| Pay off your credit cards on time. |
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| KiNeTiC ENeRgY |
| quote: | Originally posted by gehzumteufel
Depends on how many cards you have. You my friend have too many for your income level. Even after your raise you will have too many.
JD: He is right if you only have that card, but honestly, you need to dump the student card. Those always have the worst interest rates. |
lol, he really does. Dunno who the hell told him its good to have lots of cards and credit available to him. Its all about the income vs credit ratio. |
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| gehzumteufel |
| quote: | Originally posted by KiNeTiC ENeRgY
It may only hurt him if he plans to get a loan. They may or may not like that he has a certain amount of credit open to him. I would think its much safer to close the account, then pay it off and get the better card he wants. I know for a fact that getting grad/med school loans, they do not like u having open accounts and a lot of credit with a low income ratio. |
It's much safer to leave the account open, not use it, and pay it off. Why? Because having a closed account doesn't help you, yet it still accrues interest. The open account will accrue interest at the very same rate as the closed account, yet helps your credit score.
| quote: | Originally posted by THE_Chris
Pay off your credit cards on time. |
Not if you have none, little, or bad credit. If you have any of those, you NEED a revolving balance to improve your score. That's not saying have a massive one, but just one of $100-200 a month for at least 1 year. |
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| KiNeTiC ENeRgY |
| quote: | Originally posted by gehzumteufel
It's much safer to leave the account open, not use it, and pay it off. Why? Because having a closed account doesn't help you, yet it still accrues interest. The open account will accrue interest at the very same rate as the closed account, yet helps your credit score.
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I'm thinking along the lines of him most likely making crap for money being just out of college, and its a bit safer to have it closed so he can't get into trouble jacking that one up as well, as the one he wants. It depends on his maturity level, which for most newbs is the lack of realizing the money u charge actually has to be paid back. (no offense to u JD :D ) |
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| gehzumteufel |
| quote: | Originally posted by KiNeTiC ENeRgY
I'm thinking along the lines of him most likely making crap for money being just out of college, and its a bit safer to have it closed so he can't get into trouble jacking that one up as well, as the one he wants. It depends on his maturity level, which for most newbs is the lack of realizing the money u charge actually has to be paid back. (no offense to u JD :D ) |
Haha too true. |
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