Chase $1400 bal, $2000 limit @ 9.9% fixed; I usually pay twice min due. Direct Merchants Bank $4200 bal, $11700 limit @(Purchases 9.49%, Cash 12.49%). I usually pay $50-100 above min due. DMB has always increased my CL w/o my asking (4000 initial CL 2 1/2 years ago). How high should I let them increase it? We'd like to buy a house in 2004...Since the Chase ratio is high, should I do a BT to DMB? How should I juggle this to improve the FICO (725 TU, 685 Experian; won't know equifax till monday, but it was 636 in May)? Thanks a lot! Rina -- Conquering through Christ
A higher credit limit with low balances always helps to improve your debt to income ratio, important factor used in credit scoring. If they are willing to increase the limit without an inquiry, then I say go for it. But this falls back on your original post of being a servant. You have to use your own discipline and not over-extend yourself financial. You sound like you are making great payments on your cards monthly, but before I move anything, I would see what the balance transfer rates are. Some financial institutions offer a low 2.9% balance transfer, no extra fees, for 6-9 months or even for the life of the transfer. These can help you save money by transferring out of the higher APR's into a low fixed APR for a set time frame. But be advised, that most financial institutions credit your payments to the balance with the lowest APR first, thus the purchases you had at 12.9% or higher continue to gain interest, while paying the lower BT rate. Good Luck and Welcome to the Board
