Do Balance Transfers Affect Credit Rating

Your credit scores are determined by a variety of factors and a balance transfer may affect some of those factors here are the score components most likely to feel the negative effects of a balance transfer.

Do balance transfers affect credit rating. Someone with excellent credit a. You can also seek to prequalify for a card which can tell you whether you might be approved using only a soft inquiry that doesn t affect your credit rating. How a balance transfer can hurt your credit. Instead of focusing solely on how your credit score will react consider how eliminating credit card debt will affect your overall financial health.

Any change in your credit use can affect your credit score so it s possible that a balance transfer from one credit card to another could negatively impact you. Since recent credit applications are 10 of your credit score applying for a balance transfer credit card could cause your credit score to drop. The credit card maneuver known as a balance transfer is a great way to knock down debt. Most balance transfer cards require excellent or good credit which means a fico credit score of at least 670.

The negative impact of balance transfer applications. A balance transfer can be a good way to pay down credit card debt depending on several factors though balance transfers can help or hurt a credit score as well. However what you do after a balance transfer can end up impacting your. Transferring a balance to a new credit card has no effect on your credit score.

And it will boost your credit score too if you do it right. However any decrease in your scores would likely be temporary and over time this could be a positive change. A balance transfer can hurt your credit score in many ways but in every case responsible credit card use can make it easy to recover over time.