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Tips on balance transfer and their credit impact - The Bills.com Blog
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Tips on balance transfer and their credit impact
Thursday, Oct 11, 2007
Question: Hi, I'm a person who has about 1350.00 in credit card dept and I'm wanting to transfer the 3500.00 to a 0 balance card for 15 months so I don't have to pay the finance charges is this a bad thing to do in terms of credit history i have great credit right now.
Answer: While credit scoring is too complicated to make an across the board statement about how a particular action will affect a particular person's credit score, balance transfers like the one you describe usually have a negative impact on the borrower's credit rating. Generally speaking, a balance transfer is not going to kill your credit score, but the amount that your score is affected depends on the other positive and negative items already on your credit report. A balance transfer from a high-interest card to a 0% card could save you a lot of money and make paying
off your credit card debt easier, so it may justify the potential harm to your credit rating. You must weigh the cost and benefits before you can decide whether a balance transfer offer is right for you.
Since you are asking about credit updates, you might also be interested in how your credit score is calculated. Your credit rating is calculated based on several variables, including: your payment history (do you have any late payments, charge-offs, etc.), the amount and
Since you are asking about credit updates, you might also be interested in how your credit score is calculated. Your credit rating is calculated based on several variables, including: your payment history (do you have any late payments, charge-offs, etc.), the amount and
type of debt that you owe, if you have maxed out any of your trade lines, and then several other secondary factors like the length of your credit history and how many recent inquiries have been made to look at your credit history. Paying off delinquent or maxed out trade-lines will almost always help your credit score.
If you would like more information, please visit our
Credit Resource page.
We hope that this helped you to Find, Learn, and Save!
Best,
Bill
www.bills.com
If you would like more information, please visit our
Credit Resource page.
We hope that this helped you to Find, Learn, and Save!
Best,
Bill
www.bills.com
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