Balance transfer - does it affect credit score?

frugalfrog

Hi

A few years ago I decided to have a go a "stoozing" however, due to extenuating circumstances I had to give up my well paid job, which meant we had to spend the savings on living, so at the end of the free period we had no money to pay off balance so I transferred it to another 0% card for a low fee.

This card is now ending and we have enough saved to pay off, however, we really could do with doing some home maintenance (damp issues in an old house, prob guttering/roof), so I am considering transferring again and using the savings to pay for this (balance is now only £1500).

However I am concerned as this will be a second transfer of a balance, that it will affect our credit score when we want to change mortgage etc (we are a bit high risk as both self employed now!) so don't want to do anything that would make things worse!

BTW we both have a healthy credit scores, never missed a payment on anything (however oh did have a red mark from when Lloyds screwed up and said he didn't pay a card which was closed about 8 years previously! the amount he was accused of not paying was 24p!!!! but that is another story)

Thanks for any help you can give

HappyMJ

Having an ongoing outstanding balance affects your score. You need to weigh up the advantages of saving interest (money) against a very minor mark against your credit score. I'd say it's well worth it.

YorkshireBoy

I think you're worrying unnecessarily.


If you close down the card you're BTing from your debt situation, as reported on your credit file, will remain the same, ie £x available credit and £y used credit.


In fact, because lenders like to see 'settled' accounts on your file, your rating could actually improve!

The_Boss

frugalfrog wrote: »

BTW we both have a healthy credit scores

This is not true as neither you or your partner or anyone else has a "credit score".