Manage a High Credit Card Balance Before Opening Another Card

A high balance can increase interest costs and affect how much of your available credit you are using. Before looking for another card, read your latest statement: balance, minimum due, due date, purchase APR and any promotional rate. FICO explains why revolving utilization matters; your actual score response depends on the rest of your file.

Make a payment plan you can keep

List the amount you can pay each month after essential expenses. If even the minimum is difficult, contact your card issuer promptly and ask about available help. If you have multiple debts, nonprofit credit counseling is another source of help. Neither option requires applying for a new card.

If you are considering a balance transfer

Compare the transfer fee, promotional APR, end date, APR afterward and the payment required to finish on time. A 0% introductory rate is temporary. Carrying a transferred balance can also cause new purchases on that card to accrue interest because of the loss of a purchase grace period. Read the CFPB's explanation and the issuer's current terms before deciding. A transfer can reduce interest in some situations; it does not reduce the principal owed or guarantee approval.

Your next action: Write down one card's balance, APR, due date and an affordable monthly payment. If you still want to compare cards, use our card comparison lesson first.