 TITLE: What Is a Balance Transfer and How Does It Work? CONTENT: What to Consider Before Completing a Balance Transfer\n-----------------------------------------------------\nWhen you're evaluating whether to pursue a balance transfer, consider the following:\n*   **Credit score requirements:** Check your credit score before you proceed. Most balance transfer credit cards require good to excellent credit—670 or higher. If you're not quite there yet, look into ways to improve your score.\n*   **Effect on your credit score:** When you apply for a new credit card, your credit score may dip as a result of a hard inquiry being added to your credit report. The effect will likely be minor, if there's any effect at all. Still, it's something to keep in mind if you're applying for new credit, such as a mortgage, in the near future. On the other hand, transferring a balance could be a way to improve your credit utilization, which is an important credit scoring factor. The new card would increase your overall credit limit and your individual card balance on the card you're transferring the balance from.\n*   **Balance transfer limits:** Your new credit card issuer will take a look at your credit history and determine your credit limit. You can then likely only transfer a certain proportion or dollar amount of that limit to the card. Prioritize transferring the highest-interest debt you can to save the most money.\n*   **Time period to complete the transfer:** You may be allotted as little as 45 to 60 days from account opening to initiate the balance transfer. Make sure you set aside time to do so.\n*   **Calculate the fees and savings:** Since you'll most likely have to pay a balance transfer fee, make sure the interest savings from the transfer justify it. END