NWR: credit card / credit score question

I have a balance on a credit card that is taking me longer than I'd like to pay off. This is mainly because I charge $200 in recurring bills to it each month - cablevision, verizon - to get points :) I've been paying $200 a month on it, more if I can, but since $200 gets charged to it every month, it's not really moving. I am thinking about getting a new card and transfering the balance (I just got an offer for a 0% interest rate until Jan 2010) and then cancelling it once it's paid off. Does this make sense? Will it hurt my credit score to do this? I have three cards now, and this will make it 4. (I also have 3 store credit cards that I use infrequently and pay in full when there is a balance.) I have very good credit right now.

TIA!

Thanks Girls! I thought I had read it was an ok thing to do from Suze Orman, wasn't sure though.

And I was thinking of cancelling two of my store cards - actually I have 4! - Macys, Gap, Banana and Kohls. I never use the gap one and kohls I don't really use either. Macy's gives great coupons though :) And I like the free $ / % off coupons I get from banana.

THANKS!

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Posted by JBoothIn2008

Thanks Girls! I thought I had read it was an ok thing to do from Suze Orman, wasn't sure though.

And I was thinking of cancelling two of my store cards - actually I have 4! - Macys, Gap, Banana and Kohls. I never use the gap one and kohls I don't really use either. Macy's gives great coupons though :) And I like the free $ / % off coupons I get from banana.

THANKS!

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I am 99% sure you can use your Gap/Old Navy/Banana at all stores.

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Posted by Kerin2804

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Posted by JBoothIn2008

Thanks Girls! I thought I had read it was an ok thing to do from Suze Orman, wasn't sure though.

And I was thinking of cancelling two of my store cards - actually I have 4! - Macys, Gap, Banana and Kohls. I never use the gap one and kohls I don't really use either. Macy's gives great coupons though :) And I like the free $ / % off coupons I get from banana.

THANKS!

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I am 99% sure you can use your Gap/Old Navy/Banana at all stores.

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All three of those stores, yes. I got the gap one because I wanted the 30% off they were offering that day for getting one. Going to definitely cancel that one, don't need two for the same stores! Kohls has great coupons too ... hmmm ... i don't shop there often but they give great incentives, and their prices are pretty good ...

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Posted by JBoothIn2008

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Posted by Kerin2804

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Posted by JBoothIn2008

Thanks Girls! I thought I had read it was an ok thing to do from Suze Orman, wasn't sure though.

And I was thinking of cancelling two of my store cards - actually I have 4! - Macys, Gap, Banana and Kohls. I never use the gap one and kohls I don't really use either. Macy's gives great coupons though :) And I like the free $ / % off coupons I get from banana.

THANKS!

---

I am 99% sure you can use your Gap/Old Navy/Banana at all stores.

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All three of those stores, yes. I got the gap one because I wanted the 30% off they were offering that day for getting one. Going to definitely cancel that one, don't need two for the same stores! Kohls has great coupons too ... hmmm ... i don't shop there often but they give great incentives, and their prices are pretty good ...

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Keeping a credit card open with 0 balance actually helps your credit score.

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Posted by 2007 Crescent Bride

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Posted by JBoothIn2008

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Posted by Kerin2804

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Posted by JBoothIn2008

Thanks Girls! I thought I had read it was an ok thing to do from Suze Orman, wasn't sure though.

And I was thinking of cancelling two of my store cards - actually I have 4! - Macys, Gap, Banana and Kohls. I never use the gap one and kohls I don't really use either. Macy's gives great coupons though :) And I like the free $ / % off coupons I get from banana.

THANKS!

---

I am 99% sure you can use your Gap/Old Navy/Banana at all stores.

---

All three of those stores, yes. I got the gap one because I wanted the 30% off they were offering that day for getting one. Going to definitely cancel that one, don't need two for the same stores! Kohls has great coupons too ... hmmm ... i don't shop there often but they give great incentives, and their prices are pretty good ...

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Keeping a credit card open with 0 balance actually helps your credit score.

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I think Suze said that too! I should re-read her book So I think I will just cancel the Gap one.

You guys are good at this stuff!!!!!

do NOT close out any old credit cards. Leave the accounts OPEN and in GOOD STANDING. This helps your credit A LOT!!!

We saw a financial planner recently who told us just that. We had closed an account and he suggested we open it back up, cut up the card and not use it. Having open, revolving lines of credit shows responsibility, etc...

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Posted by davenjess

do NOT close out any old credit cards. Leave the accounts OPEN and in GOOD STANDING. This helps your credit A LOT!!!

We saw a financial planner recently who told us just that. We had closed an account and he suggested we open it back up, cut up the card and not use it. Having open, revolving lines of credit shows responsibility, etc...

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ITA

2010 bride here:

canceling cards is very bad for your credit. i recently was able to pay off all my balances on all my cards, so FH took all the cards and i am not allowed to have any, with the exception of the 1 that i have that has a $300 limit for when i drive back & forth to my parents home in upstate NY.

you should transfer your balance to a 0% card and then determine how much to send to pay off the balance within the allotted time.
most importantly don't charge anything else. also you shouldn't put recoring bills on a credit card you should pay with a checking account every month when you get the bill or have the money taken directly from your checking accout monthly.

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Posted by davenjess

do NOT close out any old credit cards. Leave the accounts OPEN and in GOOD STANDING. This helps your credit A LOT!!!

We saw a financial planner recently who told us just that. We had closed an account and he suggested we open it back up, cut up the card and not use it. Having open, revolving lines of credit shows responsibility, etc...

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even store cards?? If I don't use them? I want to close 1-2.

the other cards I have (non store) I am not closing, just want to transfer a balance to pay it off quicker.

Since you dont have that many cards you should keep them all open and just dont use the ones that you dont need to. If you open the other card & transfer the balance your % of available credit will decrease if you close the higher interest rate card which will in turn reduce your credit score.

% of available credit is a determinant in your credit score, as well as # of inquiries, and your payment history.

Also, on the cards that you dont use, be sure to charge on them once in a while, even if it is only $5 and once a year. Creditors will close inactive accounts after a while if they arent being used.

hth

personally, i wouldn't open or close anymore accounts. Closing credit card accounts can actually hurt your FICO score. shows that you possible can't handle it.

Do you watch the Suze Orman show or read her books?? she is on usually midnights (CNBC) on Saturdays but they repeat during the week. she gives excellent advice. What will helps your credit score is paying your bills on time & not having an enormous amount of credit card debit. they actually want see a history of on time payments.

Hope that helps