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Looking to sell my current house in a year and purchase a larger house. Worried about a negative change in my credit score which is currently 750. I have an outstanding balance of $ 7500.00 with a fixed rate of 5.99% that will change with the new terms of service to a variable rate around 15%. If I decline the new terms of service my card is closed and I keep the low rate of 5.99% until its payed off. Should I try to find another card with a better rate to transfer my balance until its payed off? I only have one credit card.

2 Thoughts on Should I refuse Capital One’s change in terms of service for my credit card?
  1. Reply
    Kitty Cat
    November 10, 2011 at 1:31 pm

    If you’d like to start paying $ 112 a month before you even pay a cent towards your debt, go ahead and accept it.
    Don’t you love choice.

  2. Reply
    Sgt Big Red
    November 10, 2011 at 2:30 pm

    How much it would damage your score depends upon how it will affect your debt utilization ratio. Closing it will reduce your available credit line thus raising your ratio percentage. This lowers ones score.

    If you have other accounts that are paid off and still open, then the affect should be little and your score will rise once you pay down that $ 7,500.

    Obtaining another card will just lower your score as it will place a hard hit (inquiry) on your credit report and often those 0% offers have loopholes you can drive a mack truck through.

    If you can afford to loose that available credit line and not raise your ratio, then might just as well save some interest and close it out.

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