Transferring Balances
Hello everyone. I want to transfer some balances from my higher interest rate cards to lower interest rate cards. I am also a beginning RE investor. If I transfer those balances now, and anticipate applying for a mortgage anytime soon (1-3 months), will my credit score drop initially and thus affect the mortgage rate and amount that I am able to attain? My current score is 698). Thanks.
Hello,
I wouldn't think so because you still have the debt but just on a different card. Hopefully when you do, they show up as being paid.
Here's the deal though. What I would do is muster up the courage to call those high % credit cards and ask them to lower your rate as well as remove any annual fees they charge. Tell them your starting a business and need to figure out what cards to get rid off.
More often than not you will see your interest rate drop like you would not beleive, all because you made a phone call!
I have seen this time and time again!
Try It!
The most you will get is a no!
They want to keep you as a customer...
98% of the time it wont affect you. If you establish a pattern of shifting balances then it will... If you go to equifax Website they have a simluator and transferring balances is one of the options.
But I have been told by friends inside the business that only if you do it repeatedly will it have an adverse effect
The FICO credit score is determined on many criteria. One of which is "debt to max" The goal should be to spread your debt and not be approach the maximum limit. This will ONLY benefit when the ratio is the same across each trade line. So if you have transfer and used 30% of the max ALL your trade lines should not exceed 30% for your FICO score to improve.
Eric & Rosa
[addsig]