How do I keep / improve my credit score? ?

Question

I have 5 credit cards. I have been paying off everything on time, however, most recently got behind and has been only be able to pay off as much. I have then balance transferred some money to a newer credit card gave me no APR for 12 months. Should I keep on balance transferring when I get caught up on the payment? What do I do with the credit card that were paid with balance transfer ? Should I use it again? or cut them off and throw it away? Do I need to call the company to cancel it as well ?

Answer 1

Shifting your debt to another credit card isn't such a good idea. The temptation is to run up the original credit card. Then you are stuck with the big payment on the new card and payments on the old cards.



You need to get your credit card debt under control NOW. Stop charging. Make a very strict budget. Eliminate all the extras -- eating out, new clothes, cell phone, etc. Take every penny you can squeeze out of that budget and throw it at the highest interest rate card, while making minimum payments on the rest. When the highest rate card is paid off, move to the next till they are all paid in full.



Find ways to bring in more cash -- have a garage sale, collect alum cans, get a second job. Throw every penny at those credit cards.



Don't close any accounts till you get them all paid off. Then keep two oldest major credit cards that do not charge annual fees. If you have a newer major credit card that offers better interest/higher limit/rewards, keep that as well. Only keep store or gas charge cards if you have some special purpose. Close accounts via mail and request written verification that the accounts are closed and 0 balance. Keep that verification forever.

Answer 2

balance transfer is not free, it is very expensive and it should not be your normal method of managing credit card debt. the cards you balanced out of are still good and may be used although the issuer is probably not happy about losing those assets (your debt are their assets). if you wish to cancel them you may do so by calling customer service and telling them to cancel the card. they will try to talk you into changing your mind and you have to insist and not relent. do not just cut them up and throw them away because the account is still open and come expiration time you will receive replacement cards.

Answer 3

You want to keep the credit card acct open. - if you cancel it it makes your score drop not sure if I can explain this correct but they look at it like this... say you have 3 credit cards, each one has a credit line of $3000 dollars, well say you have 500 dollars charged on 2.. to credit card companies it looks like you have an available line of $9,000, and you are only using a small percentage of that... (im not good with percentages but say that would be less than 10% percent of your available credit) if you close one of them then you only have 6,000.00 credit available and where you owe 500 on each - it looks like your using say 30% percent of your available credit.. ok so that is the best way I know to explain it... but it is said most places you credit looks best if you keep unused cards open