 TITLE: How a Balance Transfer Affects Your Credit Score CONTENT: Would a Balance Transfer Hurt My Credit?\n----------------------------------------\nWhen you apply for a balance transfer credit card, a hard inquiry will appear on your credit report. A hard inquiry is when a potential lender, such as a credit card issuer, checks your credit to assess whether you're likely to make payments as agreed. A soft inquiry caused by checking your own credit or by lenders looking to preapprove you for an offer does not affect your score.\nIf the lender decides you present too great a risk, your application will be denied. Multiple hard inquiries could demonstrate to a lender that you're seeking credit from too many sources and that you may not be a responsible borrower. Hard inquiries stay on your credit report for about two years, but they don't impact your credit score as much as your payment history or total outstanding debt does.\nAs with any new line of credit, opening a balance transfer credit card could negatively affect your credit by lowering the average age of your accounts. Lenders value long credit histories because experienced borrowers are more likely to use their credit appropriately. While opening a new account could temporarily cause a dip in your score, the benefits of strategically using a balance transfer card to pay off debt will generally outweigh it. To be safe, avoid closing older accounts around the time you open a new one so you're not doubly affected. END