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Question By
Cldobbins

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Should I close my first credit card to get a bigger loan with a better rate?
I applied for a credit card with a lower interest rate at the credit union. I wanted to transfer 2 balances, about $5000 to this card, but they only approved me for 3700(enough to transfer one credit card). In additiong they will only offer me the 3700 if i close the wellsfargo card. The problem is that it is my 1st credit card. So will it help or hurt my overall score if I took larger credit limit at the expense of my avg life span of credit cards?

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Closing Old Credit Card

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Never and I mean ever close an old credit card account I also agree with the other comments made by mdtaylorlrim. Thank you!

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dont ever close your oldest acct

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NEVER AND I MEAN NEVER CLOSE YOUR OLDEST ACCOUNT. THE REASON IS THE LONGEST ACCOUNT SHOWS YOUR ABILITY TO MAKE PAYMENTS OVER TIME WITH THE ABILITY TO MANAGE AND KEEP A GOOD STANDING ACCOUNT. JUST HAVE MORE THAN ONE CARD. IT WONT KILL YOU AS LONG AS YOU MANAGE YOUR MONEY RIGHT AND KEEP YOUR USAGE AT A 30 PERCENT RATIO. IT WILL IMPACT YOUR CREDIT SCORE A GREAT DEAL IF YOU CLOSE ANY ACCOUNT ON YOUR CREDIT REPORT. TRANSFERING BALANCE IS ANOTHER WAY OF CLOSING YOUR ACCOUNT YOU WANT TO HAVE AS MANY AND POSITIVE ACCOUNTS AND MARKS ON YOUR CREDIT AS YOU POSSIBLE CAN AND BUILD FROM THERE I DONT KNOW WHAT YOU GOAL IS BUT IF YOU INCREASING CLOSING WILL ONLY DECREASE. GOOD LOOK

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Helpful to 1 out of 1 people

It appears that it will be detrimental to your score in that you will still have a 100% (or the same %) of credit utilization, and your average length of credit will be reduced.

What you have to decide is how much am I saving due to the lower interest on the new card, and how much faster will I lower my credit utilization by applying the money saved towards the balance? I would go with lower interest rate in a minute. Apply the savings to pay down the card faster reducing your credit utilization.

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I didn't know

I just messed up,by applying for another card with better percentage rate. Credit Karma had this offer classified ,as good chance, to be approved. It would be another hard inquiry. I assume now my score will be effected. Live and learn the hard way. How long does this sort of activity effect your score? I'll sieze anymore offers and keep my balances down. It's ironic how all the mail we begin to get from so many credit card companies. especially anyone try to establish new credit. We all want to improve our percentage rates with better offers. Right?

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