Credit card help? Is it best to consolidate your debts to one card?

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This topic contains 2 replies, has 3 voices, and was last updated by  Anonymous 7 years, 10 months ago.

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  • #213339


    I currently have a target credit card that has reached its $500 limit and is now just gaining interest at a very high rate (about 20%) I also have a bank of america mastercard with a 14% interest rate. I want to close the target account..Is it a smart move to transfer the target balance to the mastercard?

  • #283883


    No, it’s never better to close a credit account. Your score will drop for 2 reasons. One – the account is no longer active and can’t be used to calculate your credit score. Two – the account history will be deleted and won’t be calculated in your credit score.

    The target card limit is only $500 to begin with so start by paying down the card to at least bring it current. Until you do so you’ll be paying mega interest on the balance and your score will take a dive for your credit utilization being too high.

    If anything use the Mastercard (because it has the lower rate)
    to pay off the Target card so you can get rid of that high interest but again do not close the account.
    Then start paying off your Mastercard right away and don’t be late on any payments.

  • #283969


    Check on the fee you’ll pay for the balance transfer. You might be better off if you focus on getting the Target card paid off.

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