I just transferred 3 credit card balances totaling $7,797 to an approved credit line of...
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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.
I have several credit cards with high balances and high interest rates. How many balances am I able to transfer over to One Card in which card would be the best one for me?
As a rule, you can transfer up to the full credit limit onto your new credit card. However, some issuers may set different limits for balance transfers. For example, the transfer limit may be capped at 75% of your overall credit limit. To find out...
If I wanted to transfer around $8,200, how much would the payment be?
A balance transfer card is a credit option that gives new cardholders a set period of time to pay off debt transferred from another card with no interest charged.
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