Transfering credit card balances often.. Good idea?

[copiche]

Do transfer balances to lower interest (0 APR) rate credit cards often ( anually) hurt your credit history?

[alenhard]

Good question, but you should probably ask somewhere else...like a bank?

I'm not being sarcastic, it's just that when it comes to money and finances you need the best possible advice with the smallest possibility of error.

[northcat_8]

actually it should help your credit.

Your credit report does not show that you transfered a balance. It just shows one card paid in full.

But like alenhard said, it would probably be best to ask someone in that business.

[888888]

Good question, but you should probably ask somewhere else...like a bank?

I'm not being sarcastic, it's just that when it comes to money and finances you need the best possible advice with the smallest possibility of error.

LOL
And I'm sure a bank is the best place to find objective, impartial advice. The people that work there want whats best for the bank and credit cards not you.

[Hardcoreruss]

Yeah its good, change them around. It will not hurt your credit history.

[ChrisX]

If you paid your credit card in full by the due date your ok.

I can transfer money into the credit card account as many times I want and no harm in that.

I've done it twice a month on occasions just to pay off early and get it out of my way.

The most important thing is to pay back in full on time will give you a good credit history.

However, if you overspend on your credit card than you earn isn't good and this may effect on your credit rating.

[lordsmurf]

Not too often, no. Don't do it just because you can.
But when you need to, yes.

[DVD_Ripper]

I've been moving a $25,000 starting balance now for three years from card to card and have not paid a nickel in interest. Of course its down to reasonable amout. I just started the same with another $10,000 van purchase-- I've got 0% apr thru next august... again hopefully down to an amout I can just cut a check for.

The masses won't move the money or will make purchases on the same card and get royally screwed.... gotta be shrewd and read the fine print.

Do it !!

[tekkieman]

Some credit offices will tell you that constantly transferring will hurt your credit since you are showing no long term accounts being current. While constantly showing zero balance is good, no long term credit history is bad. Could be a wash.

[Guest]

The only potential negative is that the transfer bank may pull your credit report. I believe your credit is somewhat weakened whenever your report is pulled.

[Pwyll]

A hit to your credit report every 3 months won't do much harm. There is a possiblity of damaging your credit beyond repair if you do not close out your existing accounts.

Let's say you have a credit limit of 100 and you are in debt 50 of that 100. If you move that debt to another card with a limit of 100 you will now have a potential debt limit of 200 with a debt of 50. The higher that first number gets the less likely you are to get a larger loan (car, mortgage, school, etc) because they see that you could potentially go into debt beyond what you can pay back. But as long as you keep closing the 0 balance accounts it should be okay.

[DVD_Ripper]

that you could potentially go into debt beyond what you can pay back.

Great point... better pull all those old cards out.

[Doramius]

I work at a financial institution and we deal with this every day. Transferring balances, in itself, does not hurt your credit, nor does it help. However, Yes, applying for new cards may require a pull of your credit and place an inquiry. They do very little, unless there are a lot over a short period of time. Also, close out old inactive existing accounts that have no balances, but not all at once. If there are a lot that close immediately, the credit reporting agencies view that as hostile action and they may do a small drop in credit rating. Also maxing out balances, then carrying them also weakens your credit rating. If you're looking to establish strong payment patterns in trade lines, do it through installment loans with recurring regular payment schedules. Revolving lines can detract from debt vs. income when doing payoffs, because a financial institution's underwriters view you as having the capability to redraw on the paid off line. Installment loans don't detract as once they are paid off, the contract is ended and you can't be relended on that account. If you keep credit cards, keep the lowest interest rate with highest available balance cards. if it's a $30k balance with 21% intrest, but it up. If it's $200 available balance at 3% intrest, cut it up. If you have a 5-7% intrest on a $20k available balance, use it. Also keep them active, but avoid carrying balances. It's not stated quite widely as financial institutions don't make much money when you don't carry a balance, but if you have 3 credit cards. Use each one at least once a month. Wait 1 week and then send in a payment according to the receipt amount. This creates monthly activity, regular payment history, and good debt management skills. This reflects positively on your credit report.

[DVD_Ripper]

Also, close out old inactive existing accounts that have no balances, but not all at once. If there are a lot that close immediately, the credit reporting agencies view that as hostile action and they may do a small drop in credit rating.

not sure why closing all at once would be construed as a 'hostile action' ... can you explain.

[Doramius]

Each listed account represents a trade line or credit allowed. If you close many cards or accounts at once, TO CREDIT COMPANIES, this means you are a person that does not want credit or there may be alterior motives that might consider you as CREDIT RISK. You also had large amounts of credit balances available to you, which means you're goo for certain credit levels: For example - 1-$200; 3-$500; 1-$1k cards might make you eligible for 1-$3k card because all of the other cards are good and are around that balance. But if you cut up all of the cards and then apply for a $3k card, the financial institution might wonder why is it you closed all of those accounts. There may be potential risk. Credit Risk is what drives most of your credit reports. You pay a bill late and you're more of a risk. If you filed as bankrupt at one point, you are considered a risk. If you do not have enough eligable trade lines, you are considered a risk. It just depends on how much of a risk you are. Your FICO or credit rating is really called a CREDIT RISK SCORE. The higher the number, the less risk you are. The Lower the score, the more of a risk you are.