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Question By
TWBTR

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0 People Helped
Why did a balance transfer drop my credit score by 60+ points?!
Just logged on to realize my credit score had dropped by 60 points since last week when i checked. From 731/736 to 661/664. The only change I have had is i got a credit limit increase of 5600 on a credit card account I had already had for 11 years and then transferred my existing credit card debt (total of 9000) to the card I got the credit limit increase on (which had previously had a balance of zero) to take advantage of a promotional 0% for 18 offer. So bottom line my total available credit increased and my credit utilization went down, but still my credit report took a HUGE hit. I never would've done this if I would've seen this coming, especially with planning to purchase a vehicle in the next month. I assumed if anything this would've helped my credit. What on earth is going on? Is this typical with balance transfers?

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Top Contributor
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Don't worry

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The hit probably came from the transfer being reported as a new purchase, before the payment, reducing the balance on the old account showed up.  Its not all automatic you know.  it can take up to 60 days for all that to be credited and reported. 

so in essence, your showing 9K new debt while the old 9K debt is still on your report.  it should all pan out in the next month and your score should bounce right back 

no worries.

Good luck 

Reply by
TWBTR

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Well the TU is showing both debts on the cards but the EQ is not and both dropped 64-60 respectfully, why would the EQ show that when they are already showing the one card paid off?

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