Does it wreck you credit score to switch from one 0APR credit card to another when 0% runs out?

Question

i.e. have your balance transferred from one 0% APR to another 0% APR card and then closing the first card out.

Answer 1

Credit is tricky.

You have to find the balance between two few and too many credit cards.

It is not the switching of the balance that would cause your problem. It would be closing out the other account.

Your credit score is a combination of how you pay your bills and the amount of money you "could" borrow vs how much you actually owe. So, theoretically the more credit cards you have the better off you are unless you've used them and have big balances due.

If you can leave the other card "behind" and not use it then go ahead and open another.

You also have the option of calling the original card issuer and saying that you plan to stop using them.

That usually turns into another period of no or low interest. And, since most cards charge a fee when you transfer a balance it may be worthwhile to stay even if you no longer have 0% interest.

best,

cez

Answer 2

Not necessarily, but do NOT close out the old card. This will also close out part of your credit history (which is 35% of your score).

Also, watch that the transferred amount isn't the total amount of the new card's credit limit. Because ratio of debt to limit is part of your score as well.

Answer 3

I have done it all the time! Did it for 3 years running!

But, be careful! It's called "credit card kiting" and the credit card companies are hip to it. They will let you run-up a nice large balance on multiple cards and then suddenly, stop offering you those 0% rates. Your grace period on the 0% rates suddenly expires and you had better have the cash in reserves to quickly pay-down on your cards.

Answer 4

It does when you start accumulating a lot of credit cards....because if you close the old credit card after you transfer your balance those hurt your credit score becuase you are deleting your credit history for that card. I do exactly what you are doing but I try not to use my currect card as much.....!

Answer 5

I worked as a credit analyst for many years... The answer is no it doesn't, but don't close that other account, just leave it open and that will help your credit score. But bouncing around balances doesn't hurt your score at all! But, if you have a lot of inquiries, that can decrease your credit score, but that's only if you have a whole lot.

Hope this helps!!

Answer 6

It does not ruin your credit score. However, it can slightly hurt it b/c you are running credit inquiries. Make sure you do not close the account, so you can keep your credit history. Since you have cc debt, you shouldn't be opening new loans anyways, so what it does to your score should not matter.

Answer 7

I don't think so, my mum does it all the time. As long as you keep the payments up to date it should be fine, and remember to cancel the old credit card as soon as you have transferred the amount from it to the new one. Too many credit cards can be bad.

Answer 8

NO - but your credit card companies do not always report right away when you pay them off but do when they loan you money - so on your credit bureaus you could have a debt ratio problem causing your score to drop temporarilly.

Answer 9

Does not impact your credit score - but make sure you close the account you're leaving.

Answer 10

it does cause your score to drop for opening and closing credit lines. every inquiring drops score a few points and closing a line drops your available credit.