 TITLE: How a Balance Transfer Affects Your Credit Score CONTENT: What to Do After a Balance Transfer\n-----------------------------------\nMoving your balances to one credit card will make it easier to keep track of your debt and make payments on time. Avoiding late payments is perhaps the most important thing you can do to strengthen your credit.\nTo make sure you've got a strong footing when paying off debt, there are other steps you can take once a balance transfer is complete. Follow these guidelines to keep your credit strong:\n*   **Avoid closing old credit cards.** To keep the average age of your accounts as high as possible, it's generally best to keep old, unused accounts open—especially your oldest account. If an account has a high annual fee that you're unable to afford, weigh the benefits of closing it against the drawbacks. In some cases, closing it may be the best move.\n*   **Avoid applying for new credit.** Limit the number of hard inquiries on your credit report and only apply for new credit—including loans—when you absolutely need to.\n*   **Avoid making purchases with your balance transfer card.** The best use of a balance transfer credit card is to pay off debt. Adding to that debt could make it more difficult to get rid of the balance before your promotional 0% APR offer ends. After the promotional APR period ends, your APR will jump—and if interest accrues on an outstanding balance, you could negate any savings the promotional period provided.\n*   **Set up autopay.** Make all your monthly payments on time to protect your credit score, as credit score calculations generally weight your payment history quite heavily. You can set up automatic payments from your checking account to your credit card for a specific amount each month. Ideally, it should be enough to allow you to pay off the total balance within the 0% APR period.\n*   **Create a budget.** To avoid accruing additional debt, make a budget and regularly track your spending. Get clear on your take-home pay, and how much of it goes toward necessities, luxuries and savings. The process of building a budget can be a helpful exercise in itself; it can help you notice recurring expenses, like a gym membership, that you don't use and can safely cancel to quickly save money.\n*   **Pay down debt.** Calculate how much you'll need to put toward your credit card payment each month to get out of debt, and stick to it. Look for ways to stay motivated, perhaps by treating yourself to small rewards at certain milestones, or checking in regularly with a friend who's also trying to get out of debt. You can share frustrations and triumphs and inspire each other to keep going. END