Balance Transfers 101

bartok77

I have been reading through the various threads and grasping the whole things about credits cards as I have never used one or had one before. However before I devuldge into the unknown, I'll like to know all the facts. Now I do not have a balance on a credit card to do a balance transfer but if that was the case, would doing a balance transfer affect your credit rating? And can you do balance transfers everytime you find a better deals elsewhere? Won't the various lenders discover you are just hopping all over the place?

CannyJock

Transferring a balance doesn't affect your credit report. You'll have two cards with credit limits on your report for a period of time - best to close the one you've moved the balance off of. It makes sense to do a balance transfer near the end of one 0% period rather than pay interest, remember there's a balance transfer fee each time. If a card provider looks into it in detail they might realise you've flipping the balance, but that won't necessarily prevent them offering you a card - in my experience they don't really care, they'll still hope you screw it up and incur interest charges.

Moggles_2

Would doing a balance transfer affect your credit rating?

I doubt whether cc providers can distinguish BACS payments made by other card companies from those of their customers

Moggles_2

Can you do balance transfers every time you find better deals elsewhere? Won't the various lenders discover you are just hopping all over the place?

I've been "hopping about" for more than a decade and have yet to have a credit card application turned down. Provided that you maintain your credit files in tip-top shape, you'll be fine

bartok77

Thanks for all your contributions people.