Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
KubbyBlue

0 Contributions
0 People Helped
Credit Score Effect - Apply and Approval of New Credit Card, Balance Transfer to New Card
I have excellent credit scores. What affect would opening a new credit card with a 0% Intro Balance Transfer, and doing a balance transfer from an existing higher interest rate card? I did the CK credit simulator, and it showed that my credit score would dip by 56 points. Is this accurate as it seems like a big hit. Thank you

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
675 Contributions
353 People Helped
Most Helpful Response

Helpful to 1 out of 1 people

It depends on many factors in your credit profile.  like how many credit cards do you have?  what are your limits?  what is your current utilization? How long have you had your accounts open?  The thicker the file the better.

As far as FICO scores are concerend if you are paying down a credit card that is good and lowering your utilization.  Opening a account would depend on how many accounts you already have.  The balance transfer would matter if you are using all of the credit limit on your new card.  High utilization on one card matters also, you dont want to show maxing out any cards.

Sorry I dont have a direct answer to your question but not knowing anything about your profile makes it hard. 

Last, If you are going to be carring a balance for any amount of time I would do it.  You will get the points back and a few points are not worth paying extra interest for.

Top Contributor
5038 Contributions
1134 People Helped

I would not put any faith at all into the simulator on this site. Completely inaccurate. Watch your FICO scores too. If you have decent credit and can save some money by what you want to do, I would say, do it. As said your scores may dip but will recover, but it mainly depends on your overall profile as to what will happen.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.