Does transfering a credit card balance to another credit card with lower interest affect your credit score?

Answer 1

If you're only transferring your balance once, it should have little or no effect on your credit score. Problems arise when you transfer to new credit cards on a regular basis to continue to take advantage of 0% APRs. But even if you transfer your balances on a regular basis, the negative impact is only short-term. Many people use this technique to carry their debts interest-free for long periods of time.

You can find a complete list of 0% APR credit cards here:

http://www.asapcreditcard.com/0-apr.html

Hope this helps. GOOD LUCK!

Answer 2

If you have such cards, contact their issuing agencies and ask them about balance transfer fees and other charges and are they willing to transfer balances from your existing high interest rate credit card. If you don't have any such low interest rate credit card, which offers balance transfer, by all means search for one that provides attractive balance transfer rates and a 0% Intro APR for the longest period. This will keep the interest rates on the lower side. Now, transfer your high interest rate balances to this credit card, and close the high interest credit card account. The money you will save on interest rates can be used for other things to improve your financial condition.

Remember, proactivity always pays, credit card companies don't lower interest rates on their own. They have to be told to do so, and if you have valid reasons and good credit history to support you, you can always get a bargain, otherwise there is always the option of balance transfer. Read more about it at: http://www.credit-card-gallery.com/article/260,3_step_proactive_approach_to_lower_the_high_interest_rates_on_your_credit_card

Answer 3

Everything that changes any information on your report affects your credit score. As long as you didn't open a NEW account for the balance transfer, it should not have much of an effect. Your total debt, debt to credit ratio and type of debt all remain the same. Opening a new account will have a negative effect on your score, but the amount can't be determined withhold seeing your entire report.

Answer 4

From study I even have discovered that a healthy credit is a make up of three-6 credit enjoying cards and a minimum of one million-2 loans in solid status. Your credit stability should not be extra advantageous than 35% of your credit shrink and there must be a protracted historic previous of ontime money. So in case you're thinking abouth that 5th credit card decrease your balances to 35% and save making ontime money, and a 5th credit card shouldn't decrease your score. besides the undeniable fact that once you get your new card you will see a comfortable shrink on your credit, it is going to rebound after some months of ontime money. solid luck

Answer 5

It may decrease it temporarily if the balance is reported on both cards for one cycle (the new card shows the balance but the payment hasn't posted on the old card yet) but then it should be back to "normal" the next month. Watch out for balance transfer fees though. Some cards don't cap it at $75 anymore.

Answer 6

No it doe's not. All you are doing is transferring debt from one account to another.

If you are using a credit card with a lower interest rate or better yet one with 0%, you can save a lot of money in interest charges.

Answer 7

I don't think it makes much of a difference.
It can save you a lot of money, though.
Just make sure you always pay the new card on time, or the rates can jump quite a bit.

It all depends on what your credit history is like.
I've done this many times, and have a credit score over 800.

Answer 8

It shows that you are about to over extend if you are not already. Pay it off instead of juggling balances.

Answer 9

no