Should I max out my new or old credit card?
Q: I am going to borrow $8,000 on a credit card. I need the money and the interest rate is 1.99% for 15 months on both. Also, it only costs 2% in transfer fee for either credit card. So I will owe $8,160 including the transfer fee. The problem is I have had the first credit card for 4 years and it has credit limit of $10,000. The second card has been in my possession for only 2 months. It has $8,500 credit limit. So looking from the point of FICO scoring algorithm should I,
- max out the new one with utilization rate of 96%
- use the old credit card with utilization rate of 82%
- transfer $4,080 on both for 48% and 41% utilization rates
A: I would either, split the money between both or put everything on the new credit card. Your old credit card is well established and you should take care of it.
Sun Nov 21, 2010 07:11PM | Copyright: www.bad-credit-advisor.com | More in Credit Repair Tips | Comments (0)
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