Quote:
Originally Posted by hboogz
let's say you have 3 CC'S all of which have above 40% of debt against the available credit. Understanding the best approach is to pay down debt irrespective of CC and APR's -- wouldn't it still be prudent to consolidate all 3 cards into a card with an available credit that is higher than the combined credit limit of all 3? thus lowering your outstanding debt vs available credit ? and boosting your FICO?
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In the long term, yes. Anytime you open a new card (without incurring any new charges), you will be improving your debt utilization ratio because you have more available credit. This can lead to an increase in your FICO score. Short term, however, your FICO goes down when you open new trade lines. Especially if you open multiple in a short period of time.
To do what you are suggesting, though, you have to be sure you qualify for a high enough limit to consolidate. Also, you'll want to check transfer fees, how long the promotion lasts, what the APR will be after the promotion, and a number of other variables that can cause problems down the line.
Additionally, creditors don't rely solely on the FICO when evaluating a client. They take things into consideration that FICO does not touch, like income and other financial obligations. Moving debt around won't change that data.
If you want more specific advise, I suggest posting a new thread and everyone would be happy to help! Welcome to the board.