Yesterday, i did a balance transfer. I have 2 credit cards. One has a credit limit of $500 %26amp; the other $1,000. I%26#039;ve never missed payments on either of the cards. However, I maxed out the $1,000 card. So I got an increase to $2,000 on the card with the $500 limit %26amp; transfered the $1,000. The interest rate is so much lower...I%26#039;m going to be paying half of it off by July....was this a bad idea???
Will a balance transfer have a negative impact on my credit score?
It will lower your score for a few months but not by much. Just don%26#039;t do that very often or it will affect your score.
Late payments are one of the biggest negatives.
Maxing out cards is a negative. You need to keep the total owed under 30% of your credit limit. So at the moment, you%26#039;ve lost some points from maxing out the card and doing the balance transfer. However, if you are making on time payments and reducing the total amount of debt, you should be okay. Just don%26#039;t charge a bunch of stuff on your new $2000 credit limit.
Will a balance transfer have a negative impact on my credit score?
That was a great idea. If you can keep transferring balance to low interest cards, not only will you be paying less but it raises your credit score.
Will a balance transfer have a negative impact on my credit score?
When you maxed out the $1000 card it probably had a negative impact, but when they increased that one card to $2000 it was positive and the balance transfer will not have a negative impact. No, it was not a bad idea it was good.
Will a balance transfer have a negative impact on my credit score?
No way it was the best thing you could do, it%26#039;s so much better than a loan or a credit card with high interest, you get it paid off way sooner and your not paying more than you acctually spent.
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