Balance transfer advice

Balance transfer advice

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Discussion

crazy about cars

Original Poster:

4,454 posts

170 months

Saturday 23rd April 2016
quotequote all
A family friend has asked for some financial advise and I'm hoping for further input from PH.

He currently have 3 credit cards:
  • Card 1 with main bank - 0 balance minimum credit limit.
  • Card 2 - Active credit card. Currently have sizeable balance of around 5k
  • Card 3 - Opened around 1.5 years ago to take advantage 0% balance transfer. Not much left and was told can afford to pay it off in 1 go
His plans are to:
  • Close Card 1
  • Transfer balance from Card 2 (and maybe Card 3) into a new 0% card and close down Card 3.
My concern is that his plans will somehow affect his credit history/profile. I believe he is also planning to apply for a mortgage in next 6 months or so.
Does having less credit card affect credit history? Should he just pay off Card 2 and not think about another balance transfer? He told me he could probably pay off Card 2 balance but would take sizeable chunk out of savings.