Another credit card and credit score question

If you have a maxed out credit card, and you take that amount and split that amount between 2 other cards so that you're not "at limit" is that better for you credit score? It's the same amount just not maxed out. I thought it would help your score to split it up? Any thoughts? Thanks!

Re: Another credit card and credit score question

it will have no effect...all your balances are added up, divided by all your limits -

so if you have two credit cards with a $10K limit each..you have $20K in availability...
if ONE card is maxed out and the other isnt used....you have $10K in debt, which is a 50% availability - that 50% will still be the same if you have $5K out on each card.

Re: Another credit card and credit score question

see, i think it would help you. i use a company that analyzes my score for me and it says if you have a cc where you are using more than X% of the credit limit on a particular card, it hurts your score. so i would think let's say 50% and 50% would be better than 100%.

IMO, it's better to get that card paid off the quickest way possible. it's not good to be close to the max. my DH did that and 1 month got a late fee which put him over the credit line, which they then charged him an over the limit fee. he is clueless sometimes. this was before we were married and i took over the finances.

as long as by transfering the balance you won't then add to it, i think you should go for it.

ETA: by transfering the balances, it WILL hurt your score for the first month b/c you will be increasing the balances of the other cards. keep that in mind too.

Message edited 9/22/2007 10:43:02 AM.

Re: Another credit card and credit score question

I think it would be worse. When DH and I were looking to buy a house we had some credit counseling and they told us to get rid of our credit cards with zero balances because mortgage companies look to see how much potential you have to get yourself into trouble and it reduces our credit score. They also said not to close them all at once. To get ride of one or two a month until we were down to just a couple (we had every store card or credit card that offered a promotion to open it).

HTH,
Kelly