Let’s Learn About: How Balance Transfers Affect Your Credit Score
A balance transfer — or shifting the debt on one credit card to another — impacts everyone’s credit score differently. How and whether a balance transfer affects your credit score depends on the specifics of the transfer, your credit history, and other factors. To better understand the potential impact of a balance transfer on your credit though, it helps to learn about the factors that make up a credit score. How your credit score is calculatedA credit score provides a lender a quick way to gauge your creditworthiness by measuring the likelihood you will pay your loans back and whether you’ll do so on time. Your FICO® Credit Score (one of several credit scores available) is based on five main categories, each contributing a different percentage to the score:
It’s important to remember that any change in your credit usage or credit payment activity may affect your score. Credit scores move up and down to reflect the latest information in your credit file. Checking your credit score is a good way to keep up with changes in your credit report and monitor the impact of positive or negative events. How do balance transfers affect your credit score?How a balance transfer affects your credit score depends on four factors:
How balance transfers help your creditWhen you’re considering balance transfers to refinance your debts, it’s important to figure out what kind of interest rate and term durations will help you manage your debt most effectively. Since the act of transferring balances won’t be the catalyst that heals or harms your credit itself, taking advantage of a lower APR can help you decrease your credit utilization ratio and help you make payments on time. Additionally, if you’re opening a new credit card to initiate a balance transfer, there may be newer, more exciting rewards on your horizon. How balance transfers hurt your creditOn top of hard inquiries, opening new lines of credit for a balance transfer may mean that you’re lowering the average age of the accounts tracked to calculate your credit history. If you also cancel older cards, such as your single decades-old credit card, credit bureaus may look unfavorably at this departure, as it will lower the average age of your accounts further. Lastly, if you use your new balance transfer credit card to run up additional debt, outstanding debt balances and late or missed payments will fight back any hard work you’re doing to rebuild your credit. When considering a balance transfer it’s important to stay informed and read the fine print carefully. Understand all the costs involved and think about the cost of the balance transfer versus the long-term cost of carrying high interest debt. How hard to get a Discover it balance transfer?You need a credit score of at least 700 to qualify for the Discover it Balance Transfer credit card. That's good credit, but they'll also look at other details from your credit report that may influence your approval odds, such as debt-to-income ratio and recent hard inquiries.
Can I get a Discover card with a 600 credit score?WalletHub, Financial Company
A 700+ credit score is needed to get most Discover credit cards, but there's no minimum credit score needed for a few Discover cards. You can get the Discover it® Secured Credit Card with a bad credit score (below 640).
What FICO score do you need to qualify for a Discover it card?Credit needed
In order to qualify for the Discover it miles card, you'll need a good or excellent credit score. Like the Discover it Cashback card, this means you'll want a credit score of 670 or above.
Is Discover it card good for balance transfers?The Discover it Balance Transfer card is one of the best balance transfer credit cards since it offers the same 18-month 0 percent intro balance transfer APR (14.99 percent to 25.99 percent variable APR thereafter) as several top transfer cards, but it still carries the same benefits you'll find on any other Discover ...
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