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Credit Card Applications » Questions » User Questions » Balance Transfers » How does the credit score get affected by 0% balance transfers?

How does the credit score get affected by 0% balance transfers?

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Credit scores are affected by balance transfers in many ways, and one can improve the credit scores if adequate measures are taken. However, one must take care to see that the credit scores are not damaged while doing a 0% balance transfer. In order to get a better understanding of how credit scores are affected, one must go through the free credit monitoring services to get the actual picture, as to what could go wrong in a given scenario. This service provides all the access to credit scores for a period of one month, where the forecasts for credit scores are provided as well.

Some useful tips:

• Don`t cancel or close a credit card when a 0% balance transfer is being done, as this will have a negative impact since it will reduce the overall credit limit, which you could avail. To a lender, it would seem as though you were trying to exceed your credit limit, and this could easily have an adverse effect on your credit score.
• The older the credit card the better, and never make the mistake of closing an old card (two years or more) especially if the credit history has been good. All the credit history on that card would be lost if the account is closed.
• Always try to consolidate high-interest balances onto the new card while keeping the old card open. Try and pay off some of the old debts and consolidate all the high-interest balances.

There are number of ways to do 0% balance transfers without affecting the credit scores of an individual. With proper planning and execution done properly, 0% balance transfers may have a positive effect on the credit scores. However, individual results may vary based on various other factors. The credit score estimator could be used to get an accurate estimate of the credit scores.

Credit utilization is the ratio between the credit limits and the credit card balances, and it accounts for about 30% of an individual`s credit score. As the credit utilization goes up, the credit score will come down and this is not a good thing.

Another step one could take to give a quick boost to one`s credit score is to ensure that payments are made well in advance, and before the due date. This helps in restoring the credit scores quickly.

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Intro APR on Balance Transfer: 0% (12 months (on balance transfers made within 45 days of account opening))
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Intro APR on Balance Transfer: 0% (18 months)*
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