Balance Transfer Question

PersonalRecession

A couple of queries if anyone can answer please.

If I transfer a balance from credit card A to B, will B close my credit card account?

Also, will this have a negative impact on my credit status / report?

Thanks for your help.

thenudeone

No it won't.

You'll need to close any accounts you want to closing.

Of course any lender could close your account at any time, but a balance transfer won't automatically close the account.

gglaze

PersonalRecession wrote: »

If I transfer a balance from credit card A to B, will B close my credit card account?

No

PersonalRecession wrote: »

Also, will this have a negative impact on my credit status / report?

Not any more than any other transaction would - i.e. affecting your % of total available credit utilised, etc. Presumably in the case of a balance transfer you are net zero effect on your % utilisation (you subtract from one card and add to another card, and your total available is still the same).

It may also be possible to see which of your credit balances are on promotional rates and which are on standard puchase rates - so yes in theory the shifting to promotional rates may slightly affect your credit rating one way or the other - but this is more of a subjective thing.

But other than that, no - there is nothing special about balance transfers that would make them show up as red flags on your report, automatically shut down accounts, or anything like that. Just think of them as you would any other transaction, except they have the special ability to be sent to another card as a payment. And from the other card's point of view, again they are nothing special - just like any other payment you might make by any other means.

PersonalRecession

Thank you very much for the replies Thenudeone and gglaze.