Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
sbrafa

1 Contribution
0 People Helped
Should I close a Slate card that gave me a low credit limit to balance transfer?
Today I opened a Chase Slate card hoping for a high enough credit limit to allow me to transfer 15-20K from another card, but they only gave me 3.5K. I'm not sure what to do with that actually so I'm wondering if I should close the card before I get it, or continue to shop around, or keep paying my current card. Thoughts?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
784 Contributions
297 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

You must have very good to excellent credit to have received the Chase Slate card. Don't cancel it, but transfer what you can. 

That being said, you have too much debt on your cards, and you're paying too much interest. Anytime you pay interest, it's wasted money except on a mortgage loan where you can deduct the interest if you file long form on your taxes. Perhaps you can obtain a personal loan to pay off your credut cards. 

Otherwise a few people here recommend Dave Ramsey's formula for getting out of debt.  That's the "snowball method".

 If you want to get out of debt as cheaply as possible, list your debts from highest interest rate to lowest. Make the minimum monthly payment on each, but throw all your extra cash at the highest-interest debt. This is sometimes called the debt "avalanche" method of repayment.

This strategy is the cheapest because when you’ve paid off all your debts, you will have paid the least amount of interest overall compared with other strategies.

Stop using your credit cards until you get these paid off. Never charge more than you can pay off monthly, so you're not paying interest.  Also, read all the articles here to educate yourself further.

Reply by
sbrafa

1 Contribution
0 People Helped

I called them this morning and they couldn't increase my line unless they ran another credit inquiry which I was not in the mood for. So I decided to cancel the card this morning after talking to an agent. I'll start paying big chunks on my existing card and just look to another card in a year or so.

Top Contributor

Reply by
johnnybinsea

675 Contributions
353 People Helped

it still would have been better to leave it open and move what you could have over to the slate.  At least that much you would not have been paying interest on.  You had already taken the hit for applying for the card and you already messed up your avg. age of accounts.  Next time you open a account make sure it is a account you want to keep open for awhile.  You are only hurting yourself by opening and close accounts.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.