Always remember, in the world of credit, creditors view your debt
as NOT what you owe, but what you could owe. This means if you transfer a balance
from an existing credit card to a new introductory
rate card and do not close the first card's account, your potential debt will
be equal to the combined credit limits of both cards. And that's what creditors
will be calculating against your income. If you have already established a strong
credit history, you may want to close any credit card accounts you no longer intend
to use.
Your Credit History
One of the most important factors creditors use when determining your creditworthiness
is your credit history. Keyword being HISTORY. When you jump from one card to
another, you are NOT establishing a credit history. If you have not yet established
a history, you may want to keep your first account open and ask to have the credit
limit lowered to $100. This way your potential debt will remain low while you
continue to build a history and, in the event their offer changes, you can return
to the first card without having to reapply.
