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Answer:
It may and it may not hurt your credit score, it depends on the way you do the balance transfer. If you are just transferring the debt from one card to another, without closing the previous account, it won't hurt. Your credit score depends on the credit utilization ratio. If you do cancel the old account your credit available will decrease and the debt will remain the same. It makes credit utilization grow and brings your credit score down. Also, to keep the credit utilization low, apply for a balance transfer card with a reasonable limit. If, say, you transfer $5,000 onto a $6,000 card, it'll hurt your credit. In fact, a wisely made balance transfer improves your score rather than otherwise. If you have a good or excellent credit at the moment, you can get some of the most attractive 0% APR balance transfer credit cards. Extremely popular credit cards with balance transfers are More Card - Clear from Discover Card Company and Platinum Visa® of Chase Bank. Both offer 0% intro APRs for 12 months, low APRs on purchases and no annual fees. These cards require good-to-excellent credit rating to be approved for. If your score is less than good because you're only building credit history, you also can find a card with a balance transfer option, only its terms are generally not as beneficial as on good cards. A good variant in this case would be Capital One Platinum, a card for average credit history. If you're looking to make a balance transfer, these credit cards might be a good deal. Compare their rates and fees and apply online. |
