0% offers & credit score?
transfer balances over on 0% offers.
I understand that it is a double-edged sword in many of the financial moves we make in regards to our credit history, but I'm not satisfied with that as an answer.
If one is juggling around 0% offers, how does it impact your score and how can one best go about it without impacting your score too dramatically.
Example - 0% offer expires for $10k. I open a new $10k, 0% card. My balance to limit ratio has just improved, but I now have more revolving debt on my history. Does closing off the previous one, opened for just a year for the 0% offer, improve your score by lowering your total revolving debt, or hurt it since your balance to limit ratio is higher and the account was only open a year.
Answer:
Having MORE revolving debt IS NOT what hurts your score. What hurts it is that by opening that new account, you've shorted the average history of your overall accounts. HISTORY is what the key is here.
If you were to open a new one and close the older one, it would damage it even more.
If you are trying hard to get out of debt, open that new 0% card and do the transfer-- but DO NOT close the old account.
IF you have an obscene amount of cards (more than 8-10) then pay the NEWEST cards off and close those-- but again, only if it doesn't hurt your utilization ratio.
I think you need to talk to someone who specializes in dealing with this sort of matter
Im really not sure it has been my experience if you keep an account open but dont cary any balance on it - and then in a couple months close account my score has never really changed much - I think opening a new account could change your score a little - however its also based on how much debt to open credit you have. So having 10,000 on a 15,000 card - or having 10,000 on one thats 15,000 and another 15,000 open shows you have open credit available - Banks are always offering good deals too - if you get 0% for a year just make sure you always make the minimum payment of they could jump your rate -
I always check this web site to see who has the longest offer for 0%
http:://www.bestbalancetransfe.
Again I dont specialize in credit scores however when I was reading about it several factors come into play to get that magic number.
I think it will improve your score,you may want to read this article
http://www.usacreditcards.org/?cont=arti.
Everytime you get a new credit it will lower your score.
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http://www.bestcreditrates.net
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