Improve credit score by doing balance transfer between cards

amm0124

Hi guys,

I regularly pay off my CC bill and repay mortgage every month. To get a bigger re-mortgage on my apartment next year, I am thinking to do the following.

Recently, having heard a way to improve credit score by making B.T. between two or more cards. I believe this way is safe as it won't let me spend money elsewhere.

I have several credit cards and I am thinking to start from using two of them.
1st card: Barclaycad. 0% interest, 0.9% transfer fee, 12 months
2nd card. MBNA. 0% interest, 2% transfer fee, 12 months.

1. B.T. 2k from the 1st card to the 2nd one + 0.9% fee which is 18 pounds.
2. B.T. 2k from the 2nd card to the 1st one + 2% fee, 40 pounds.
3. set up direct debit for both cards paying a mini. payment every month. In fact, I repay nothing but a transfer fee 18+40 pounds

My question is, by repeatedly doing the above B.T and even using multiple cards to make a cycle, B.T. a fix amount to one another, will my credit score and limit gradually increase? And is there any negative impact on my credit score?

PS not a native English speaker, I do apologise if there is any vague statement.

Thanks for any help :beer:

ForeverAwake

I think you're overthinking it

Balance transfers do not improve credit history, they are a way to save money by shifting debt around to cheaper rates.

Charge responsibly to cards
Make your payments on time
Rinse & repeat

Ben8282

When you say 'repeatedly' doing the above I assume you mean every month?
I believe that giving the appearance on your credit files that you spend and repay over £4k per-month on your cards could result in your being given higher credit limits on future credit card applications, assuming of course that such expenditure is credible in relation to your income, I can't see how this could possibly result in your being given a bigger mortgage. Quite the opposite in fact. The mortgage lender will no doubt ask what this £4k per-month expenditure represents and, unless you have a really good income, presumably question affordability.
There may well be a negative impact if the credit limits on your existing cards are low and making these balance transfers gives you a balance which is very high in relation to your credit limits. Again, depending on your income and available credit, the existence of these balances could make further borrowing more difficult. If neither of the above apply there should be no adverse effect.
If you really want to spend £58 per-month to do this, I think you would be better off spending this £58 on a nice meal, put the cost of the meal on a credit card and pay in full by direct debit each month.
Also, if you want to put the maximum possible spend through the cards each month to increase the turnover, use your cards for all possible purchases and pay in full each month.

Car1980

A credit score isn't of any importance. It's a meaningless number and you have a different one with each of the three credit reporting companies.

A mortgage company would be more alarmed at frequent money juggling with your account.