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sharilynne1221

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transfer balance while waiting on home loan, good idea or no?
I am in the process of getting a home improvement loan which should close some time late spring. I want to transfer a high balance credit card to a 0 % interest card. Is this going to affect my home inprovement loan?

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It shouldn't but it could

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You say that the loan will close in spring, The day of the closing they will pull a fresh credit report just to make sure that you still qualify.  Moving a balance from one card to another should have little effect in your utilization rate.

Be aware though, That if your actually opening a new line of credit for the 0% transfer, That WILL have an effect, Dropping your score for at least 3 or 4 months becuase of the New Inquiry, the New account and the overall Age of accounts. 

My bank is constantly mailing me "Checks" that I can use for 0% for 12 or 18 months.  If you have those, that would be an excellent way to do a transfer.  Otherwise, I'd be quite hesitant to do the transfer.  

If that is not an option, I would do your best to pay down that high balance before the closing.  Getting it as low as you can will help when they pull that final credit score before the closing. I paid off 3 cards to 0 and a 4th to 10% of my limit, About $4k total,  in the time between Pre-Qualifing and the closing. The day of closing, my interest rate had dropped a full percent because of my lower utilization rate.

Reply by
sharilynne1221

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Tkanks EddyTX's....I will wait to do the transfer sometime after the closing...I have been working on a payoff plan for other bills so that little bit might also help at the closing!

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