Looking to move your debt to a balance transfer card? Here’s what that could do to your credit score.
Your credit score will also determine the amount of debt you can transfer . For example, terms for the
state: "The total amount of your request including fees and interest charges cannot exceed your available credit or $15,000, whichever is lower." So, if you have a $6,000 credit limit, the maximum amount you can transfer is $6,000.making on-time payments is just as important with a balance transfer card. Your payment history counts as 35% of your credit score calculation, but hopefully with a balance transfer card it will be easier to pay on time since you aren't racking up additional interest during that card's specific 0% APR period. If youAlso, don't forget that applying for a new credit card — even a balance transfer card — triggers a hard inquiry on your credit report.
"Hard inquiries serve as a timeline of when you have applied for new credit and may stay on your credit report for two years, although they typically only affect your credit scores for one year," Anderson says. "This may lower your credit scores by a few points." But a balance transfer might impact your credit score favorably when it comes to your credit-to-debt ratio, or. By opening a new card, you'll be increasing your total credit limit. In this case, you'll want to remain vigilant about not racking up debt on your old card once your old balance returns to $0. If you can do this, you could see a positive uptick in your score since you'll have more unutilized credit available than you did before.
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