Hi All, please read thru.. I have clean all-debt-timely-paid credit. creditkarma says my fico to be 780 and i know thats just an approximate. those arent my concern. i have about 6 major credit cards with a total credit limit of $60K. i use maybe 1.5 to 2K everymonth that i pay off the same month. a few months ago, I got conned into applying for a new card for airtran airways (barclays bank visa).. (my fault, should have listened to the guy diligently) filled an application and didnt realize it was for a CC, anyways they approved and it gave me 6K. havent used it at all. I dont need that card at all. should i cancel it? I have to save my usairways miles which is expiring and the only way at this point is it pay them or apply for a usairways master CC. i prefer to apply for the usairways credit card($89 fees) and will cancel it within the year. I learnt that the USAirways card is also from Barclays Bank. Is it better if I cancel the Barclays Airtran card before I apply for Barclays US Airways Card or should I keep both? I am planning to get a mortage and get a house this year? Should I be reducing my credit limits.. will 60K empty credit line scare the potential lender? will it affect my credit score if i reduce my limits?
First, I would call Barclays and ask them if you could transfer from the AirTran card to the US Airways card. A lot of times banks will let you change from one card to the other. That way you'll already have a start on building history and you won't have the closed account on your record. If they don't let you do that, come back and we can discuss what to do.
sorry i should have mentioned. I already tried that and there is no way they can do that. Barclays Airtran is visa and Barclays USAir is Mastercard. Also Airtran didnt have any annual fees while USAir does have $89. I also asked them if the credit limit on the USAir card will be affected since they've already given me 6k and would they be willing to give me more again.. and they had no idea about that too.. all they wanted was me to apply and then find out.. lol..
I think I'd apply for the new one and see what happens. If there aren't any fees on the AirTran I'd be tempted to keep it, just use it occasionally, and let that credit limit help the utilization ratio. If they say they can't do it because you have too many acccounts, then tell them you're willing to cancel the AirTran card.
Thanks Hedwig. I'll try that and update here as to what happend. Also.. how about my second question..
If you lower your limits, it will lower your score because it will lower your utilization ratio. As to whether $60K of available credit will scare a lender, it depends on the rest of your situation. If it were me, I'd leave it alone. Go to a mortgage broker. If s/he says it's an issue, tell them you'll get the limits lowered. Otherwise I wouldn't worry about it if all else is in good shape.
Go to a "loan officer" at a bank. Half of the mortgage brokers that solicit us everyday don't know the first thing about credit scoring or even what it takes to qualify for a mortgage. Scary.
