Balance Transfers

[angelicwriter]

Is it really wise to transfer your high credit card balances to another new card? Does it make it easier to pay off and instantly improves your credit or does it just add to your debt? What do you think?

[Melizzy]

If you can transfer to a lower rate and not use the card and pay it off, then yeah, do it.

[randomthoughts1875]

In my opinion transfering your balance to a card with a lower interest rate is a great idea. If you are only making the minimum monthly payment this could save you a great deal in interest. I would suggest reading some articles by Suze Oreman if at all possible...she offers great advice on this subject. Have you read or watched anything she's done before? As far as this improving your credit score I'm not really sure how this transfer would affect you.

[mamab]

If you can get a lower credit rate, then yes, it's a good idea. As far as it affecting your credit rating, it will, but not immediately. As far as I know, and I could be wrong, but I'm pretty sure reports are only sent to a credit agency every 6 months. In that case, it wouldn't change your rating for at least 6 months.

[moonmagick]

It also isn't going to help if you leave the card with the paid off balance open. Because eventually you will have a huge debt to income ratio. But if you can do it, it will certainly help with the amount of interest you have to pay if nothing else.

[SageMother]

Quote:

Originally Posted by moonmagick

It also isn't going to help if you leave the card with the paid off balance open. Because eventually you will have a huge debt to income ratio. But if you can do it, it will certainly help with the amount of interest you have to pay if nothing else.

Why would leaving the card with the paid off balance open negatively affect your debt to income ration?

[moonmagick]

Quote:

Originally Posted by SageMother

Why would leaving the card with the paid off balance open negatively affect your debt to income ration?

Because you have the potential to spend that money. I worked in credit cards and this is a big thing that a lot of credit lenders look at. If you have 10k in available credit, potentially you could go out tomorrow and spend it all, even if you only have a balance of 1k right now.

[mamab]

It's the same if you get a bill consolidation loan. If you consolidate your bills, and pay off all the credit cards, you would be wise to cut up the cards and close all of the accounts. If you leave them open, you'll just be tempted to use them again.

[aquariancore]

You have to really investigate those balance transfer. Most of them have a limited time of low interest and balloon quite high. Newschannels run spots on this practice several times a year.

[Melizzy]

Some cards report monthly, some quarterly or yearly. It's up to the individual card to decide. They only negative effect it would have is if you start "card hopping."