Effect on FICO score by doing balance transfers?

Question

I just moved the balances from about 6 credit cards to one card where I have 6 months of zero interest rate. I have about $6,000 to pay off. My question is will the consolidation ALONE have any effect on my score? Meaning before I start paying down the debt?

Answer 1

Do not cancel your other cards. Just cut them up. If you have to pay a small annual fee for the other cards it is worth it. Sounds stupid but FICO looks at your available credit. Since you transferred your debt to one card will not affect your score for now but the better you pay down the the card, your score will go up. Good for you. You will be in a good position when the credit crunch hits the economy. History repeats itself. We have short term memory.

Answer 2

I agree with everything CreditAlignment posted.

I just wanted to add that Fico prefers to see balances spread out over several cards rather than one card carrying a large balance and the other cards sitting at a zero balance.

But, if you are not planning on any major purchases in the next few months, what Fico likes or doesn't like shouldn't mean much to you at this point. You are paying 0% interest and that is what should matter. Just be sure to pay it off before the 0% promo expires.

Even if you see a slight score drop, in a few months it should be on it's way back up. After you pay the promo off, you will have an excellent payment history without having to pay interest for that history - which could, at some point, raise your score higher than it is right now.

Answer 3

DO NOT CLOSE YOUR CREDIT CARD ACCOUNTS.
This is HISTORY that is being reported in your name.

This question CANT be answered because we dont know what the limit is on the Credit that was transferred to.
We also dont know if it's a new card.
If you have maxed out the card...and it's a NEW CARD then your score WILL DROP.

You will be reported as New Line of Credit as maxed out.
Anything over 35% of the credit limit will lower your score.

Answer 4

Credit card balance transfer is one of the preferred ways to get rid of credit card debt and is used by many people to get immediate relief. Credit card balance transfer essentially means that we transfer our outstanding balances from a high APR credit card to a credit card which offers low APR's. A 0% Intro APR credit card is the preferred credit card to transfer balances, but because of the widespread misuse of such credit card offers, credit card companies have withdrawn all such offers.

Indeed balance transfer saves a lot of money and can save things from going worse, but many people simply don't know the right way to do balance transfer. This article takes a look at the correct process to initiate and complete the balance transfer.

The first thing to look out, when a person wants to transfer his balances is a credit card which offers the lowest apr rates and lowest balance transfer fees. Many online credit card companies offer credit card comparisons. It is indeed a good practice to search for the credit cards using their services and decide on a credit card which offers the maximum savings. It is important to note here that balance transfer APRs depend on a person's credit history. If the credit card in question offers the lowest rates, it is definitely for those with the best credit ratings. There are different balance transfer apr's for people with lower credit ratings. So, it becomes imperative that one chooses the credit card which offers the lowest apr and balance transfer fees for his credit ratings. Read more from: http://www.credit-card-gallery.com/article/414,The_right_way_to_credit_card_balance_transfers

Answer 5

It should not effect your FICO. However, I would close at least two of the cards you transfered from to keep you debt/debt available at high enough ratio to keep FICO happy.