I opened up a credit card last year to transfer a... - Balance Transfers Questions


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Credit Card Applications » Questions » User Questions » Balance Transfers » I opened up a credit card last year to transfer a high balance and even though I had excellent...

I opened up a credit card last year to transfer a high balance and even though I had excellent credit score of 770+, they only approved me for $3000. I paid that off but that balance lowered my credit score to 630. Now I had some big purchases again from a high car repair and hospital bill. I want to open up another credit card and transfer this high balance. Is there a credit card that will REALLY allow $14,000 to be transferred so I can start paying it off without the high interest that is on my current card? I would like to have a credit card that I can use with no% interest for one year and no yearly fee.

Answered on | Updated on August 20th, 2010
The content is accurate at the time of publication and is subject to change.

Having a credit card is can be quite exciting. They can make it feel like you are richer than ever and can afford so much more than on a regular basis. Most people tend to overdo their spending and then end up with a high balance and an interest rate that makes it difficult to deal with the debts. This situation warrants a balance transfer onto a card that has low interest or 0 interests. These balance transfers when done right can be beneficial but if you blindly do it without understanding all the underlying implications you can end up with bad credit scores. A balance transfer is not to be taken lightly by the consumer, it is important to know all the terms and conditions involved well.

When you do a balance transfer an important factor that you must consider is what is called the utilization rate. When you transferred the $3000 to a new card, you should have checked that this amount is only 30% of the credit limit on the new card ideally. When the amount transferred is over the 30% of the total credit limit then it affects the credit scores of the individual and makes it go down by a certain number of points. What most people fail to look at is the ratio between the balance transfer and credit limit. This is what determines how much your credit score is going to be affected. What you can do in such a situation to avert such issues is to keep the old card open so that your net credit limit is higher.

To the next question which is about the new high balance on your card, yes you can find options to transfer this complete balance onto a new card with 0% interest and no fees. You can also look at some options where there will be no balance transfer fee involved in order to get a better credit limit. When you do your balance transfer or when researching options make sure that the introductory period on your card during which the interest rate is 0 is for a year. Discover has offers of balance transfer at zero fees and interest for a 6 month period (when the introductory interest rate is over, the ongoing APR will apply). There will be other companies offering such deals and at longer periods of time. If you do a good search you will be able to find one that suits you without damaging your credit score.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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Intro APR on Balance Transfer: 0% 15 months on Balance Transfers

Ongoing APR on Balance Transfer: 15.49% - 25.49% (Variable)

Balance Transfer Fee: 3% of each balance transfer; $5 minimum.

Excellent, Good Credit

Intro APR on Balance Transfer: 0% Intro APR for 12 months

Ongoing APR on Balance Transfer: Variable APR of 14.99% - 24.99% will apply after the Introductory Period

Balance Transfer Fee: Either $10 or 4%, whichever is greater, will apply on each balance transfer and credit card check

Good, Excellent Credit
See Rates & Fees

Intro APR on Balance Transfer: 0% 18 months on Balance Transfers*

Ongoing APR on Balance Transfer: 15.99% - 25.99% (Variable)

Balance Transfer Fee: 3% of each balance transfer; $5 minimum.

Excellent, Good Credit

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