Mortgage FAQ: How Does Transferring Credit Card Balances Affect My Credit Score?

"I RECEIVED AN OFFER IN THE MAIL TO TRANSFER MY EXISTING CREDIT CARD BALANCES TO A NEW CREDIT CARD WITH A LOW INTEREST RATE. IF I DO THIS, WILL IT AFFECT MY CREDIT SCORE?"

It can affect your credit and credit score, but to what degree can vary. First of all, make sure you read the fine print as some banks charge you for balance transfers and the low rate may only be for an introductory period. As for affecting your credit, the age of your credit accounts is a part of your credit profile, so think twice about opening any accounts if you’re applying for a mortgage in the near future. Also, when you apply for the new credit card, the issuing bank will “pull” your credit report, which may cause a small but temporary decrease in your score.

Opening a new credit card with a higher limit can improve your debt-to-credit ratio—often called credit utilization ratio—and thus may improve your credit score in the long run, but you’ll need to be careful to keep your balances at or below their current levels if you want to see improvement in your credit utilization ratio. Finally, if you do decide to transfer balances, don’t close the old cards, as that could hurt your score. In the end, if you’re considering buying a home or refinancing your current mortgage, talk to your mortgage professional before making any decision that could affect your credit.

For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.

Licensed by the Commissioner of Banks - License No. MB2671

All content copyright Left Field Media. Not for reproduction, republishing or reposting.

google.com/+Omegafin

#creditscore #creditcardbalances #creditcarddebtmortgage #creditcarddebt #mortgagebrokernowood #mortgagebrokerwestwood #transferringcreditcardbalances