How Do Balance Transfers Affect Your Credit Score

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.

How do balance transfers affect your credit score. Balance transfers and your credit scores. Only the application affects your credit score not the approved or denied outcome. You probably know that each credit inquiry makes a small dent in your credit score. Instead of focusing solely on how your credit score will react consider how eliminating credit card debt will affect your overall financial health.

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 what you do after a balance transfer can end up impacting your. Here are the score components most likely to feel the negative effects of a balance transfer.

How transferring a balance impacts scores. The credit card maneuver known as a balance transfer is a great way to knock down debt. Since recent credit applications are 10 of your credit score applying for a balance transfer credit card could cause your credit score to drop. 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.

So before you apply for a balance transfer credit card consider the different ways it could affect your credit score based on your circumstances to help you decide if it is the right option for you. Your credit scores are determined by a variety of factors and a balance transfer may affect some of those factors. 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. A balance transfer can be a great tactic to manage debt but it can affect your credit score when it changes your credit utilization rate the average age of accounts or the number of inquiries on your credit report.