I just transferred 3 credit card balances totaling $7,797 to an approved credit line of...
Credit-Land.com is an independent, advertising-supported web site.
Credit-Land.com receives compensation from most issuers whose offers appear on our site.
Compensation from our advertising partners impacts how and where their products appear on our site,
including, for example, the order in which they may appear within review lists.
Credit-Land.com has not reviewed all available credit card offers in the marketplace.
I just transferred 3 credit card balances totaling $7,797 to an approved credit line of $9,000 with US Bank (one of those balance transfer offers of 0% for 20 billing cycles). I just read that you should only be utilizing 30% of the total credit limit of a credit card so as not to adversely affect your credit score. Well, obviously I'm utilizing most of the credit limit of this new 0% card, BUT I'm also paying off those other 3 credit cards so those would have 0% utilization of their balances... so isn't that a good thing also? Wouldn't that help my credit score? This is the first time I've ever done a balance transfer through an offer like this and hate to think I made a terrible mistake for my credit score. What are your thoughts?
Answered on Jun 5, 2015
Updated on Jun 5, 2015
The content is accurate at the time of publication and is subject to change.
Getting a new credit card and transferring balances will change your credit score in a positive or a negative way. Which way your credit score will be affected depends on many factors. Of course the utilization ratio is one of them. When your FICO score is calculated the overall utilization ratio and each card credit utilization ratio are taken into account. If you do not close your old credit cards and continue making minimum payments on them (if there are any), it will help you keep your credit more or less at the same level. Paying off the transferred balances will help you build good payment history provided you do not miss payments. Payments history makes 35% of your FICO credit score, so you will be able to improve your credit. You can use our credit score simulator to see how this or that financial decision can affect 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.
questions RELATED TO THIS TOPIC
Can you explain the balance transfer fee a little better to me?
What are my options if I am unable to pay off the balance during introductory period?
If you see that you won't be able to pay off the card balance in full by the end of the zero introductory period and want to prolong your 0% APR for another year or two, we would suggest you do a simple balance transfer by...
Can I transfer a balance to the SoFi credit card from another credit card?
In general, yes, the SoFi credit card issued by Goldman Sachs supports balance transfers. But it has no 0% Intro APR period so you won't have an opportunity to save on it. Thus, we would recommend you consider the...
I was interested in Bankamericard credit card but did't like that it has no rewards... Are there any cards with 0% on balance transfers and a rewards program?
You may find credit cards with 0% intro APR on balance transfers and rewards. For example, consider
Citi® Double Cash Card – 18 month BT offer (Citi is a Credit-Land.com advertising partner). It comes with 18 months of...