by 
The Curious Bag
-
It can sometimes be in your best financial interests to transfer a current credit card balance to a new credit card to take advantage of introductory interest rates. Opening a new account, however, can have a minor effect on your credit score.
Facts
A balance transfer does not hurt your credit score and can even be beneficial.
Considerations
When you apply for the new account, the credit card company will conduct a credit check. The inquiry will appear on your credit report for a maximum of two years and temporarily drop your credit score by five to seven points.
Time Frame
The length of your credit history makes up 15 percent of your credit score. If your old credit card is one of your oldest accounts, closing it after you transfer your balance can cause your credit score to drop.
Benefits
Opening a new credit account gives you more available credit. As long as you keep your balances on both cards low, you will have a higher limit to debt ratio. This will improve your credit score.
Warning
Continue to make payments on your old credit card until you receive a written statement that your balance transfer is complete. If your balance transfer takes longer than expected to go through, not making your regularly scheduled payment could leave you with a late payment notation on your credit report.
Source:
MyFico: What's In Your FICO Score?
More Information:
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC