How to handle a credit card
I'll try to keep this as short as possible.
A few years ago, I got into some serious trouble with my credit cards. My family lent me money to get out of debt, I've paid it all back, and I WAS paying off my cc bills every month. At last check, my credit was 693. (Not great, I know, but improved.)
I have had some major medical bills lately, both for myself and my pet. For the first time in a while I am carrying a balance on one of my cards, with a debt/credit of around 35%. I hope that through some spending cuts, I can pay it off in a few months.
Recently, I was on the phone with my bank and they suggested I apply for their rewards VISA. Usually I don't allow myself to be "upsold" but I currently get no rewards from my Mastercard and I only get flight miles on my AMEX (and I rarely fly), so I took a chance and applied. I was accepted and given what I think was a very generous amount
of credit, most of which I hope to never use.
I'm wondering how this will affect my other credit cards. I know that this will increase my available credit and improve my debt/credit ratio, which is good, but will the issuers of my other cards (American Express and Capital One) look at it as, "She as far too much credit now" and shut me down? (For the record, my AMEX has almost no balance on it right now.)
Should I cancel the Capital One Mastercard, which will leave me with as much credit as I had before I was approved for the new card? (The bank Visa and the Mastercard have the same limits.)
Most importantly, I plan to transfer my CO Mastercard balance to my new Visa, since there's a 6-month "no-interest" balance transfer and I'm almost sure I can pay it all off in less than 6 months. If I do this, will I be sending a message to CO that I won't be using their card, and would they cancel my credit based on that?
Thanks for any suggestions.Source: ficoforums.myfico.com