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 credit card 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 I transfer a balance to the Apple Card by Goldman Sachs from another credit card?
No, unfortunately, the Apple Cards credit card issued by Goldman Sachs does not support balance transfers. Thus, we would recommend you consider the best balance transfer credit card offers from our partners. Many of them offer...
I carry a balance on the Apple Card and also have an Amex card with a small debt. What card can I choose to transfer the balances?
To consolidate your balances, pay attention to balance transfer credit cards from our partners. You can transfer all your balances onto one credit card and pay the debt off. When choosing a credit card make sure your meet the...
I wanted to know which credit card company would be best to do a credit card balance transfer? I have high balances on a few. I have great credit but high credit card balances.
Since you want to transfer balances from your existing credit cards, you should make sure that the new balance transfer credit card you choose is not issued by any of your current credit card issuers. Issuers do not transfer...
Can you recommend me a credit card with 0% APR on balance transfers and rewards like Beyond One Mastercard offers?
You may find credit cards with 0% intro APR on balance transfers and rewards. For example, consider the Citi® Double Cash Card – 18 month BT offer (Citi is a Credit-Land.com advertising partner). It comes with 18 months of...
Can you recommend me a credit card with low APR on balance transfers like Oriental Bank offers?
You may find credit cards with 0% intro APR on balance transfers. Read Terms and Conditions carefully before applying. For example, consider the Citi® Double Cash Card – 18 month BT offer (Citi is a Credit-Land.com advertising partner). It comes with...
0% Intro APR for 18 months on purchases from date of account opening and 0% Intro APR for 18 months on balance transfers from date of first transfer. After that the variable APR will be 14.74% - 24.74%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.