How Do Multiple Credit Cards Affect Credit Rating
Author: Debi
Posted: Mon Jun 28, 2004 12:03 pm
Post subject: How Do Multiple Credit Cards Affect Credit Rating
9/21/2002 4:17 pm CDT
I just wrote a LONG question about changing credit cards and after I posted it I thought of a couple other quick questions. Guess I should get it all out of my system while I'm on a roll.
I have had my Capitol One card for many years and have secured a pretty good rate of 9.9%. If I move my $5,000 balance to a new card to take advantage of a 0% APR offer, will it adversely affect my good "relationship" with Capitol One.
Also, I have a lot of store credit cards that I only use when the store offers an additional 10-20% off for using your card. I always pay off the balance when I receive the bill on those cards. Does it affect my credit rating to have all those cards? I only have a couple of major charge cards and only the Capitol One carries a balance.
I just found this board and was amazed by how helpful people seem to be. I am awed by their financial expertise. Thanks!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Verne
Posted: Mon Jun 28, 2004 12:05 pm
Post subject: How Do Multiple Credit Cards Affect Credit Rating
9/22/2002 7:11 am CDT
You are better off with 4 or 5 cards and using 40% or less of the available credit than one card with an 80%-90% debt-to-available credit ratio.
Moving the balance to a card, or cards, with a lower rate can only improve your relationship with Cap One - they may offer you a better rate. Read the cardholder reviews and check out the credit card companies with whom you have offers before you apply. You can do a lot better than Cap One.
But I don't think there's such a thing as having a "good relationship" with any of the credit card companies. Years of perfect payment history and letters praising the customer's performance with them mean nothing. For me, a good relationship with a ccc is keeping it at a distance and being thankful the wild animal isn't biting me.
If a hurricane is coming, the price of plywood goes up. If it looks like you're in trouble, (sometimes an 80%+ debt-to-available credit ratio will trigger a change in terms and interest rate) the good "relationship" goes out the window.
Posted: Mon Jun 28, 2004 12:03 pm
Post subject: How Do Multiple Credit Cards Affect Credit Rating
9/21/2002 4:17 pm CDT
I just wrote a LONG question about changing credit cards and after I posted it I thought of a couple other quick questions. Guess I should get it all out of my system while I'm on a roll.
I have had my Capitol One card for many years and have secured a pretty good rate of 9.9%. If I move my $5,000 balance to a new card to take advantage of a 0% APR offer, will it adversely affect my good "relationship" with Capitol One.
Also, I have a lot of store credit cards that I only use when the store offers an additional 10-20% off for using your card. I always pay off the balance when I receive the bill on those cards. Does it affect my credit rating to have all those cards? I only have a couple of major charge cards and only the Capitol One carries a balance.
I just found this board and was amazed by how helpful people seem to be. I am awed by their financial expertise. Thanks!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Verne
Posted: Mon Jun 28, 2004 12:05 pm
Post subject: How Do Multiple Credit Cards Affect Credit Rating
9/22/2002 7:11 am CDT
You are better off with 4 or 5 cards and using 40% or less of the available credit than one card with an 80%-90% debt-to-available credit ratio.
Moving the balance to a card, or cards, with a lower rate can only improve your relationship with Cap One - they may offer you a better rate. Read the cardholder reviews and check out the credit card companies with whom you have offers before you apply. You can do a lot better than Cap One.
But I don't think there's such a thing as having a "good relationship" with any of the credit card companies. Years of perfect payment history and letters praising the customer's performance with them mean nothing. For me, a good relationship with a ccc is keeping it at a distance and being thankful the wild animal isn't biting me.
If a hurricane is coming, the price of plywood goes up. If it looks like you're in trouble, (sometimes an 80%+ debt-to-available credit ratio will trigger a change in terms and interest rate) the good "relationship" goes out the window.
posted by CardRatings.com at 11:30 AM
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