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I've recently been notified that one of my long standing and in good standing credit cards interest rates will be going up, my credit is good (score711) I wonder if closing this account and paying it off at the lower interest rate would be good for me and my credit?
closing it probably will lower your score, you could pay it off and not use it and that will protect your score. By closing it you lower your available credit.
poika, If you close that card your score will go down. The best thing to do in your case is pay off the card and stick it in a safe somewhere. The longer you have a good account open the better the bnoost it gives to your credit score this is why canceling it can be damaging to your score. Once you pay off the card why not call the card supplier and ask why the interest rate was raised on this card? Maybe they will agree to lower it. It would be worht the try.
You should never close this card as it has a good credit history. If you close the card, the credit history on the card will get destroyed and your score may fall by as much as 50 points. The rise in interest rates on the cards do not matter much if you make payments with the card and repay the debt within the due date.
Hi Poika
Since the interest rates on your existing cards have increased, you can apply for a balance transfer credit card. Balance transfer cards come with zero APR on balance transfers for an introductory period of 12 months. Since you have a credit score of 711, it is not at all difficult to get a balance transfer credit card. However, at the same time you should not close down your existing cards as closing down your existing cards will lower your credit score.