Credit card consolidation

[debtfreesoft]

Hi,
I've 4credit cards I do not carry a balance but 2 of the cards have annual fees, should I consolidate these cards into one with no annual fees and how will this affect my credit ratings.

thanks

[wincrasher]

You get some points for multiple accounts with high limits. You would get a hit if you run up a high balance on one remaining card (if that's all you had) because you would have a high credit utilization.

If your cards have fees that are refundable if you use the card, then I'd make some purchases to keep the card free, and of course keep it.

I'd also advise you to have more than 1 card. That way you have an option if one of them tries to do something cheeky with you like impose a fee, reduce your limit or change interest rates. Good to keep your options open.

If you are a regular user of your credit cards, you may have some leverage to get the fees waived. It doesn't hurt to ask.

[Ashleywatson]

Credit Card Consolidation or debt consolidation is the simple process of taking all of the payments from your unsecured debt - debt from credit cards, retail store charge cards, gasoline charge cards, medical bills, phone bills and other types of unsecured debt - and putting it all into one lower monthly payment.