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  1. #1
    Registered User Junior Member
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    How does doing a Zero Percent balance transfer affect credit score?

    Can anyone tell me if or how this will affect my credit score?


  2. How does doing a Zero Percent balance transfer affect credit score?
  3. #2
    Registered User New Member
    Posts
    8

    Does Doing a Zero Percent Balance Transfer Affect Credit Score?

    Quote Originally Posted by BeachLover View Post
    Can anyone tell me if or how this will affect my credit score?
    The answer here is it depends.

    When you apply for new credit there is a small drop in your fico score when there is a new hard inquiry. This is generally a few points.

    However there can also be some major benefits once a new credit line is opened.

    Lets say you only have 1 credit card with a $2000 Limit and you have a $1500 balance. This will actually reflect negatively on your credit score as you will be utilizing 75% of your available debt.

    If you apply for an receive a new credit card with a $5000 limit and transfer that balance at 0% for either 6 months 12 months or longer, the credit reporting agencies now see that you are carring $1500 balance on a card with a $5000 limit and 0 balance on a card with a 2000 limit. You only have $1500 utilized out of $7500 or 20 Percent Utilization. Lowering your utilization should actually increase your credit score.

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