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How do balance transfers to bank account affect my credit score?

sturgeon
Posts: 396 Forumite


in Credit cards
I have recently moved home and have numerous costs to buy furniture etc. I usually pay off my credit card in full monthly, however I'm interested to take up a 0% offer to do a balance transfer to my bank account. I'd pay a circa 2% one off fee and would transfer around £6k.
I can pay off that £6k in around 3-4 months max in full, however I'd make small payments of around £300 monthly until then (far more than the minimum payment).
My question is, does this balance transfer impact my credit rating? is it effectively seen as a loan application? And it's possible I might need to do another balance transfer to my bank account, as a dormant credit card also has the same offer. Will a second one do any harm?
Effectively I can thankfully pay this all back in a couple of months from a work bonus but I'm usually very sensible with money, cautious of damaging my credit rating and want to know how this will impact it. Especially if I do it and then do another one a few weeks later (for much less, let's say £2k) if it transpires that my expenditure is mounting.
I can pay off that £6k in around 3-4 months max in full, however I'd make small payments of around £300 monthly until then (far more than the minimum payment).
My question is, does this balance transfer impact my credit rating? is it effectively seen as a loan application? And it's possible I might need to do another balance transfer to my bank account, as a dormant credit card also has the same offer. Will a second one do any harm?
Effectively I can thankfully pay this all back in a couple of months from a work bonus but I'm usually very sensible with money, cautious of damaging my credit rating and want to know how this will impact it. Especially if I do it and then do another one a few weeks later (for much less, let's say £2k) if it transpires that my expenditure is mounting.
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.......however I'm interested to take up a 0% offer to do a balance transfer to my bank account. I'd pay a circa 2% one off fee and would transfer around £6k.
You cannot get a 'balance transfer' to end up in your bank account.
Balance transfer goes only onto another credit card, thus paying or reducing the debt you have on that card. To get a transfer onto a bank account, you will need a 'money transfer'. Not too many CCs offer that facility. So check that the card you have (or you want to apply for) does offer a money transfer.0 -
The money transfers will not be seen as loan applications and there would not normally be any credit check undertaken.
The only downside to your general credit rating would be the higher balances being reported each month. The impact of such higher balances would depend on your overall situation. They may, for example, have an adverse effect on loan or credit card applications if you are believed to be heavily in debt.0 -
Apologies, I meant a money transfer not a balance transfer.
Thanks for the replies. Would the higher balances presumably only affect my general rating for a short period of time? if I applied for a new mortgage rate say late next year would this negatively impact me? I'm not particularly worried about loan or CC applications in the short term being impacted as I won't be making any.0
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