 TITLE: How to Do a Balance Transfer CONTENT: How Do Balance Transfers Impact Your Credit?\n--------------------------------------------\nA balance transfer can affect your credit in a few ways, both positively and negatively. When you apply for a balance transfer card, the lender will make a hard inquiry into your credit report. This can cause your credit score to dip temporarily, but it should bounce back within several months as long as you aren't applying for any other credit cards or loans.\nKeeping old credit card accounts open and unused after you've transferred their balances could decrease your credit utilization ratio, which can help boost your credit score. Your credit utilization ratio measures how much of your available credit you're actually using; adding a new card lowers the ratio by increasing the amount of credit available to you. A credit utilization ratio of less than 30% can positively affect your credit score. On the other hand, if the balance transfer pushes your new card's utilization over 30%, your credit score could drop. As you pay off your balance and reduce your utilization again, this factor's effect on your credit scores should be blunted.\nKeeping an eye on your credit score is the best way to see how a balance transfer impacts your credit. Consider signing up for free credit monitoring so you can get alerts whenever your credit score changes. And remember, a temporary credit score drop may be worth it in the long run if the new card allows you to get a handle on your debt. END