Do balance transfers effect your credit score at all ? Negatively or Positvely?

Answer 1

The only way a balance transfer can help your score is if you leave the card that you just transfered the balance off of open.

Credit scores are determined by a lot of different factors, but one of the most important factors is the "percentage of available credit". The higher this percentage is, the higher your score can be.

For instance. You have two credit cards, both with $5000 in debt for a total of $10k in credit card debt. Let's also say that both of these cards are maxed out. Therefore you have a 10k in debt on cards with a combined maximum of 10k. You have NO available credit so your percentage is "0%".

Now say you open a NEW credit card with a $10k limit and you transfer both balances to this new card. As long as you leave the original two cards open, you'll have three cards with a total credit limit of $20k ($5k on each of the two original cards plus $10k on the new one). But because you only have $10k in debt, you have another $10k in available credit (the two cards that you just cleared off).

Thus, you would have 50% credit available. Changing from 0% to 50% could raise your score by 100 pts or more.

If you do transfer balances, make sure you don't close any old cards and that you don't USE the old cards either.

Answer 2

It's not the 'balance transfer' that hurts your credit score-- it's the inquiry on your credit report when you apply for a new offer. It's only short-term-- and if you're only transferring once, it will have little or no effect at all. You can find a complete list of balance transfer credit cards here:

http://www.wowcreditcards.com/0-interest.htm

Hope this helps. GOOD LUCK!

Answer 3

every time you have a not uncomplicated pull on your credit will negatively impression your credit, in spite of the undeniable fact that that is going to possibly not be considerable. the bigger subject i might seem at is that if the 0% apr introductory fee additionally has stability flow expenditures. on occasion they value you a flat value on the finished stability or a proportion. merely be careful that the expenses you pay are decrease than what you have got paid in interest to your modern-day card. What you're able to do is call your modern-day credit card and tgell them you're thinking of moving your stability for this 0% apr promoting, yet might particularly negotiate a low fastened fee with them. they may be prepared to barter and it saves you a stability flow and components a low fastened fee particularly than a promotional fee with stability flow expenditures.

Answer 4

There's a lot of factors that go into that answer. I've done a lot of research on the subject and have compiled most of it on my website. You can find it at: www.mycreditstrategy.com and then go to the credit basics section. You can also look at the FAQ and Introduction to further your knowledge on the subject.

Josh

Answer 5

ONE balance transfer won't affect your score, at least not noticeably. Frequent balance transfers will look like you can't pay your bills, that can't help any.