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Answered 2007-02-12 02:29:08

It depends on the size of the outstanding balance on each card and what the interest rate is. There's no hard and fast rule, you have to do some math to figure out what each approach will cost based on your particular circumstances. I agree that you need to work out the math, but as general rule, the better course will be to pay off the higher interest rate loan as fast as possible.

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Is it better to have a credit card with a high interest rate or low interest rate?

If you carry a balance, then it's better to have a low interest rate. If you do not carry a balance, then the interest rate doesn't matter at all.

Can a high credit card balance prevent you from getting a mortgage?

Your debt is always taken into account. If your income can handle the credit debt and the mortgage there should be no problem. High credit card balances do not mean bad credit. Late or no payments make bad credit. Your better off with a high balance on a credit card that you pay regularly than no credit at all.

What are some hints on paying off a high balance on a Visa credit card?

There are a lot of credit consolidation groups, who can help an individual pay off a high balance on a Visa credit card. It is also better to pay off a credit card with a higher APR% first, and also to potentially transfer some of your debt on a higher APR% card to a lower one.

Which of these credit card features would be best for customers who want to pay off the balance on a high-interest credit card?

Low fees for balance transfers

If a person has a high credit card balance is it possible to transfer the balance to two different credit cards as in splitting the balance up?

Yes, as long as the issuing bank(s) of the credit card(s) getting the balance is/are not the same bank as the one losing the balance.

Can you pay your credit card bill by another credit card?

Yes you can pay your credit card bill by another credit card. It is called balance transfers, you can transfer the balance of another credit card that has a high interest to a credit card that has a low interest. Hopefully this answers your question.

What are some good hints on how to pay off a high Visa card balance?

One can pay off a high Visa card balanced by starting to add up all your net monthly income from all sources. Another good tip is to paying off the credit card with the lowest balance first, this is much easier and quicker to do than paying off high balance credit cards.

Why does a person keep transfer credit card balance to another before it catches up with him?

To transfer from a high interest credit card to a lower interest credit card

Is it better to have a low or high PH balance?

It depends on what plants you wish to grow.

When a credit card has different balances and interest rates can you choose which balance to pay?

Probably not, unless you can find something in your contract that will allow you to do this. The card issuer is going to apply all payments to the low-interest balance and let the high-interest balance continue to make money. It's best to use those low-interest special offers only your card has no balance and then don't use the card for anything else.

Can you do a balance transfer from someone else's credit card?

Yes, balance transfers are commonly used to move balances from a high APR to a lower rate. But the transfer will impact the credit of the cardholder receiving the balance.

Do banks have automatic balance transfers?

Yes, often times banks do provide a balance transfer in a form of a credit card. Often, their is a high intrest for doing so.

What are the bad habits of a credit card?

Paying late Going over the credit limit Keeping your balance high

Should i pay my house payment or my credit card bill?

If it is convenient but credit card interest can be as high as 45%. It is unlikely to be a good idea if you do not clear the balance monthly.

Where can I apply for a credit card?

Credit agency's often have quizzes which will match you to a card suitable for you. Your first card will tend to have a high APR and so it's important for you to pay off the balance every month.

What are some advantages of low fixed rate credit cards?

The advantage of low fixed rate credit card, it allows the card holder to pay for minimum balance without paying for a high interest rate, and not to accumulate a unpayable balance for the future.

What should you do if the credit limit you get is not high enough?

Transfer the maximum amount that the balance transfer card allows, and then perhaps consider applying for another balance transfer card so that you can transfer the remaining debt there. Since the card is recorded on your credit profile, you might as well use it instead of leaving it unused.

Does paying off high balance credit card help your credit?

Yes. Amounts owed accounts for about 30% of your credit score. Ideally your utilization rate should be 20% or less. Paying your credit card balance to 20% or less will improve your credit score.

Is there an annual fee for an aqua credit card?

There is no annual fee but the interest rate looks high and you have to be a UK resident. This may be a good card if you pay off the balance in full every month.

What is better meat or beans?

A balance of healthy foods is vital. Both meat and beans have high levels of protein, which is essential.

Will removing an authorized account that has a high balance raise the fico score of the authorized user?

It depends. Does the high balance put the consumer into a position of too much credit? Does this single high balance cause the consumer to have outstanding $100,000 in credit card debt? Or does the amount merely allow for the consumer to show that they can be responsible with making regular payments (with this account being the only debt owed.)

Which is better one credit card with a high balance or 5 low balance cards?

Better for what? If for your credit rating, it depends on a few factors. Credit cards and other loans are called trade lines in the industry. If you have no other open trade lines, 5 cards might be better, but ultimately it depends on usage and total issued credit. Without this information, I am going to assume you have few other cards and provide a best guess. Go with the 5 cards.

Can Credit Card Balance Transfers Help You Get Out of Debt?

The increased use of credit card balance transfers by people with large balances on their credit cards is an indication that Americans are looking for a solution to their debt problems. The only reason to transfer balances from one credit card to another is to get more favorable repayment terms. Many people play the balance transfer game in hopes of being able to get their credit card debt under control. The strategy can be helpful if the borrower has the discipline to restrain themselves from running up new charges on any of their credit cards. In order to attack debt, you need to stop out of control spending and focus on paying down the balance. Having a lower interest rate can keep the balance from growing rapidly while you attempt to repay the outstanding balance. If you have a high interest rate of 20% or more and a large balance, you may be paying $50 per month or more just in interest. If you only pay the minimum payment, you will wind up paying about 3 times the retail cost of the goods and services you bought on credit. If you can cut the interest rate to about 10%, a larger portion of the monthly payment you make will go towards reducing the principal balance and not toward paying interest. Often times, if you have good credit and a lot of debt, you can apply for and receive another credit card with a lower interest rate. Most newly issued credit cards will offer you the option to transfer some or all of your high interest credit card balances to their card. They may offer a promotional one-time balance transfer at no charge or with very favorable terms when you sign up for the new card. While it is always dangerous to get more credit in the form of a new credit card, if you are responsible and determined to get rid of your debt, it is worth getting a new card and transferring high-interest balances. Once you remove the balance from your high-interest credit cards you should have the mentality that you will not use the card again until you can afford to pay the entire balance each month. Put the card away in a drawer or file and pretend that you do not have the card. With all or most of your credit card debt transferred to a lower interest rate card, the strategy should be to pay as much as possible each month to get the debt down fast. Even with a lower interest rate, you are still paying a carrying cost for borrowed money. The sooner you pay off the debt, the better you will feel. Credit card balance transfers definitely can be a useful financial management tool. The best strategy is to avoid accumulating large amounts of credit card debt. If that is not possible, the next best thing is to get the lowest interest rates on the credit card balances. Credit card balance transfers can help.

Will getting a new credit card hurt fico score?

If you already have too much debt, then yes. If you do get a card, make sure that your balance never goes over 35% of the high credit balance or this will reflect poorly on your scores. Also remember, when you go requesting your credit to be pulled for a new credit card, this will bring your scores down somewhat as well.

Does using a credit card lower a credit score?

No not really, but if you have high utilization on that card ie. carry a high balance than it's kind of frowned upon. Keep your utilization to around 35% unless your one of those people who P.I.F. every month.