How credit is affected by applying for new credit card and transferring a balance?
Question by Cody T: How credit is affected by applying for new credit card and transferring a balance?
I have had only one credit card for the last 5 years. I have found a more desirable credit card from the same bank and hope to apply for one. How would it affect my credit if I unfastened a new credit account and transfer the balance from my previous teasing? After doing this I would close the account for the previous account. Thanks!
Best answer:
Answer by Huntsman
Your credit will go down slightly for the first 6 months – “newly credit”Don’t close the old account after you pay it off if it is your oldest card.”Length of Credit History” is 15% of your ratingGo to bankrate.com and click on credit cards.Then click on best for balance transfers. Note: You may be carrying a high balance now, which is causing damage to your tally. You may not get the limit you are skipping to getJust making sure you know:Any time you use more than 30% of your available balance on any card, you are causing damage to your score. Ex: $ 1,000 limit – never touch more than $ 300 worth of spending.That’s why all experts will tell you: Pay those credit cards in full each month for those top scoreOnce you pay cancelled these tease in full and get a statement that shows $ I want you to use one for gas and one for food and pay in full each month.This way, you earn beautiful credit and you never pay any interest by paying in fullAlso, never get a card with an annual fee (stay clear of them)
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