Balance transfers won't hurt your credit score directly, but applying for a new card could affect your credit in both good and bad ways. As the cornerstone of a debt-reduction plan, a balance transfer can be a very smart move in the long-term.
A balance transfer can hurt your credit score by increasing your single-card utilization, lowering your length of credit history and adding a hard inquiry to your credit report. But it can also boost your score by increasing your overall card utilization, and it can help you pay off debt faster.
But in general, a balance transfer is the most valuable choice if you need months to pay off high-interest debt and have good enough credit to qualify for a card with a 0% introductory APR on balance transfers. Such a card could save you plenty on interest, giving you an edge when paying off your balances.
Apply for a balance transfer credit card: Although you might be able to transfer a balance to one of your existing credit cards, applying for a new balance transfer credit card gives you the opportunity to take advantage of the card's 0 percent introductory APR period—which will give you the opportunity to pay off your ...
No, a balance transfer does not cancel a credit card. You are not required to close the account once a balance transfer is complete, either. It may actually be a good idea to keep your old credit card account open, even if you don't plan on using it.
Sure, you can transfer the debt again -- assuming you're able to qualify for another balance transfer card -- but you aren't doing much to become debt-free. Continuing to move debt from one balance transfer card to another could become costly if you pay balance transfer fees each time.
You can generally transfer balances from as many cards as you like, as long as you stay within the new card's credit limit. This sounds like a no-brainer, but keep in mind that most balance transfer offers involve a fee for moving the balance from your old card.
Steps to Improve Your Credit Scores
When your balance transfer is complete, your old card isn't automatically closed, and you're not required to cancel it either. Depending on the new card's credit limit, you may not be able to transfer the entire balance. In that case, the old card will have a remaining balance you must continue to pay off.
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