- Centurion Member
- Posts: 538
- Joined: Fri Mar 09, 2012 9:29 am
- Location: San Francisco, CA
This is a complicated question. It depends on how fast you can pay down your current cards. As for your credit score, remember credit karma's credit score is a FAKO and not necessarily accurate. Recommend getting real FICO score from myfico (just get one credit bureau's).
As for how getting a credit line increase or new cards will affect you: You will take a hit on FICO from new hard inqury. Inquiries make up 10% of your score so it will vary on how many other inquiries in last 2 years. The increase in available credit will help your utilization rate but the key amounts there are 80%, 50%, 30%, 10%.
But you are really asking two different questions. There is what is better for my credit score and what is better for me financially. There are not the same. Yes, high utilization is bad for credit score and so are inquires, but as some suggested earlier, getting another card with 0% APR is good for you financially as you can transfer balance and pay no interest while you pay the debt off.
The way I would be looking as your situation is consider how long you think it will take you to pay your debt off. Figure out if you can qualify currently for a 0% apr card (hopefully with no annual fee) that you can transfer outstanding debt to and pay off that debt within the timeframe.. The fact is there is no reliable investments that will guarantee a rate anywhere close to what you will be paying on your credit cards so financially speaking your best bet is to pay that debt off. Minimizing the interest you pay should be your financial goal. Your credit is only a tool towards that end. As for your long term credit goals, you should look at cards which have no annual fee so you can keep the card long term even if you hardly use it and therefore helping your AAoA.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k