Will my credit score drop if I opt for balance transfer?
Date: Sun, 01/21/2018 - 22:55
Will my credit score drop if I opt for balance transfer?
A balance transfer might
A balance transfer might affect your credit score by considering these factors:
1. The total amount you've transferred
2. The available credit limit
3. If you're transferring to pay off a credit account in full
4. If you're closing the credit account.
As SC said earlier, overall your credit score will rise since your credit utilization ratio will drop.
Balance transfer may help you
Balance transfer may help you if you can manage your debts and pay them off within the low introductory period; in turn, it will help you boost your score.
There can be a small dip on
There can be a small dip on your credit score if you apply for multiple balance transfer cards. Otherwise, your credit score may increase since your credit utilization ratio drops.
It will be insignificant. But
It will be insignificant. But as you have paid off the debt, your score will improve.
In short, a balance transfer
In short, a balance transfer means switching your Credit Card outstanding balance or dues to (typically) a new Credit Card. In other words, you can apply for a new Credit Card with a balance transfer option where in your new card company will pay all your previous dues to the old Credit Card Company.
Usually, there will be
Usually, there will be certain terms and conditions, which you need to be aware of. Be aware of the introductory offer (interest rate) period.
