Should we tranfer balance and cancel CC?
I have been with my DH for ten years now. When I met him, I was still living at home and he had been on his own for a bit, just long enough to destroy his credit (not a LOT but just enough)! LOL We had DS a year later (not planned) and have worked on building our family and then started trying to fix his credit situation. We have paid back hs debt and are now trying to rebuild his credit. The last thing we really wanted was to deal with credit cards because of their reputation but we've found that we had to go that route to show positive credit on his record so we can eventually work on loans and getting house of our own down the road.
DH had trouble getting credit cards, of course but we found the Orchard Bank credit card with a $300 limit to start with. We got it in April. His interest rate was not low at all (18%) but we made small purchases and have paid $50 each month instead of just the low $15/month rate. His rate has come down a few points in the last few months. YEAH!
The credit card offers have been coming in the mail left and right but we have stayed away. MIL told DH that the card he wants is the Capital One No Hassle one. Those offers started to come and over the months, the interest rate has gotten lower and lower...down to 12% and so he finally jumped on it.
The question is.....would it be smart to tranfer the balance to the Capital One card from the Orchard Bank and cancel the Orchard Bank card? Or should be pay off the Orchard Bank ($100) and cancel? We've only had the Orchard Bank card since April, will that look bad? I have no clue what we should do! I know we don't want to have a bunch of cards that we're not using and we certainly do not want to max out our cards or anything.