Balance transfers and effects on credit score

Eppilump100

I have a credit card that I'm paying lots of interest on and would like to consider a balance transfer (for up to 23 months) so that I can pay off the amount quicker. My question is this - will a balance transfer affect my credit score (which is currently excellent at 999)? If so, how? 

Brie

Your credit score is meaningless as you are the only person to see it.  it's marketed to make you sign up and pay to monitor it with one of the big credit monitoring companies.  

If you apply for a card your "score" might drop a bit because the application for the card will show on your credit history.  If you have to apply to a number of cards then more will be showing on your history.  

If you actually get a card again your "score" might drop as you are a greater risk because you are using more credit than you did previously.  

But as the score is meaningless that doesn't matter.  What matters is what a potential new creditor will see on your credit history.  Do you miss payments?  Do you appear to always be paying the absolute minimum?  And then the other things too  - do you move around a lot?  are you only able to get credit from bottom of the barrel lenders?  do you buy everything on credit, i.e. phone, motor insurance etc.?  

born_again

Forget about your credit score, no lender see's the made up figure by the CRA's

Martico

The question to ask is would a balance transfer to 0% affect your personal finances, and how?
Yes it would, it would mean you're losing less money, which has to be good.
As above, the credit score pumped out by those agencies is meaningless.

maxximus75

Who cares if it does?

If it will save you money in the long-run, then just go for it!

Whatever difference it does make, if any, will rebound in time just as long you keep up a good credit history.

Hoenir

Eppilump100 said:

My question is this - will a balance transfer affect my credit score (which is currently excellent at 999)? If so, how? 

Finance companies use algorithms on the full 72 months of data when assessing an application. The credit score provides a guide as to how you are managing your personal affairs. Which while important is only part of the bigger jigsaw, 

twadds123

Here we have a perfect example of the problem with so much hype around your "credit score"

The OP has been fooled into thinking it's more important to keep the credit score "perfect" rather than actually sort their finances.

So OP in short.

Yes applying for a new credit card will probably drop your credit score,  but if it leaves you in a better financial position and actually paying off debt rather than interest then thats a better scenario.

Nasqueron

Hoenir said:

Eppilump100 said:

My question is this - will a balance transfer affect my credit score (which is currently excellent at 999)? If so, how? 

Finance companies use algorithms on the full 72 months of data when assessing an application. The credit score provides a guide as to how you are managing your personal affairs. Which while important is only part of the bigger jigsaw, 

It doesn't really provide anything of the sort, you can get far more useful information from the report, unlike the scoring jumping up and down regardless of the benefit or harm of the actual reason for change e.g. dropping after a loan is paid off

born_again

Hoenir said:

Eppilump100 said:

My question is this - will a balance transfer affect my credit score (which is currently excellent at 999)? If so, how? 

Finance companies use algorithms on the full 72 months of data when assessing an application. The credit score provides a guide as to how you are managing your personal affairs. Which while important is only part of the bigger jigsaw, 

OH, boy.
Score is a made up figure by the CRA's. Notice how they are all different?
Not that with Experian you can "Boost" you score... 

Lenders only use CRA for checking things like address details etc.