Balance transfers and affect on credit rating

Ask345

Hi I want to take advantage of the 0% on credit card balance transfers offers out there at the mo, but we're just about to apply for a loan to get an extension done. Will this affect my credit rating? Should I wait until after we get the loan to do the balance transfers on the credit card? Thanks

Tixy

It could possibly affect your ability to get accepted for loan soon afterwards, or the rate you may be accepted at.

Sometimes when you do a balance transfer, and depending on the date each card reports to the credit reference agencies it can appear briefly as though you have twice as much debt as you actually do.

Ask345

That's really useful, thanks Tixy:)

YorkshireBoy

Tixy wrote: »

it can appear briefly as though you have twice as much debt as you actually do.

Also, if you don't close the other account down once settled, you may appear to have too much available credit, ie the 'potential' to create more debt.