Does transfering a credit card balance from a credit card company which charges a high interest rate to a company that charges a lower interest rate affect a person's credit score?
2006-08-25 06:52:05 · 4 answers · asked by n 1 in Business & Finance ➔ Credit
The only way it would affect your credit score is if you cancelled the higher interest rate card. DO NOT CANCEL IT EVEN IF YOU WILL NOT USE IT! Your credit is made up of different factors. One of which is available credit. If you had a card with 20% apr with $5,000 and you transferred it to another with 0% for the 1st year then 8% after, keep the 20% and just use it once a year for $5 and pay it off. The reason is you will be closing yourself off from $5,000 in available credit. The more you have access too the better your score.
Now, don't go out and get a bunch of cards, since inquiries and new accounts negatively affect your score. As a rule of thumb, try to have only 2 inquiries a year and those strictly for accounts you are sure to get.
Another factor is your debt to limit ratio. Try to keep your accounts below 50% of their limit. The lower the % the higher your score. The higher your % the lower your score.
2006-08-25 07:03:32 · answer #1 · answered by Richard B 3 · 0⤊ 0⤋
Credit Score Explained
http://www.debt-loan-refinance-mortgage-credit.com/category/Credit-Score-Myths-Explained.html
2006-08-26 07:21:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
no - as long as you pay your minimums keep a good history
and the percent you owe against the total amount that all credit cards does not exceed 20%, its ok to shift money from one credit card that charges 13& and another that charges 0% for 6 months
2006-08-25 13:57:07 · answer #3 · answered by god knows and sees else Yahoo 6 · 1⤊ 1⤋
Slightly, but not enough to worry about. If you do it a lot, the effect will be more.
2006-08-25 13:58:06 · answer #4 · answered by Anonymous · 1⤊ 0⤋