Will a credit card balance transfer hurt my credit score?
This would be to a credit card I already have that’s offering a promotional rate as opposed to opening a new one. The card most of my debt is on is charging me a penalty rate because of a couple late payments. I have already transferred the balance twice in the past year between the two cards. I’m probably going to do it anyway since it will save me hundreds of dollars in interest ,but i was wondering if there was a downside to it at all.
5 Responses to “Will a credit card balance transfer hurt my credit score?”
Comment from liwen_bonita
Time February 7, 2010 at 11:53 am
No, you are fine transferring balance between these 2 cards. It is not going to effect your credit. Just don’t be late on your payments again (ever). I hope you are also focusing on paying off these credit card debit by not using them any more. Good luck paying off your debit and boost your credit score.
Comment from abby fth
Time February 7, 2010 at 12:10 pm
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.
When you decide for a balance transfer it doesn’t mean that your obligation for payments towards your outstanding balances with the existing credit card company cease to exist. You will have to pay the credit card company all the monthly payments. One way you can save money is to just send the monthly minimum payments to the existing credit card company. This way you won’t default and invite penalty.
The next step is to sign up with the credit card which you sought for transferring your balances, and fill up the balance transfer application.
When you receive a balance transfer offer from the new credit card company, it’s time to verify the offer and call your old credit card company about the balance transfer. Get the statements of billing from the old credit card company and ensure that your outstanding balances are $0.
After transferring your balances, it’s time to close the old credit card. Call up the old credit card company and get it closed. Get the information about this closure in writing. Ask the old credit card company to inform all the major credit bureaus about the closure of the credit card. Read more from: http://www.credit-card-gallery.com/article/414,The_right_way_to_credit_card_balance_transfers
Comment from mister ed
Time February 7, 2010 at 1:02 pm
the only downside is if you do not your will loose all of that money you pay by not switching!!!
Comment from boboy
Time February 7, 2010 at 1:28 pm
NO
Comment from Ging
Time February 7, 2010 at 11:48 am
There’s no down side, as long as you leave the card open that you transferred from….and DON’T continue to use it. This will show available credit, and your ability to resist urge, and not use it. Keeps your score higher, as long as you don’t have TONS of cards out there.