{"id":2210,"date":"2021-03-07T07:42:16","date_gmt":"2021-03-07T03:42:16","guid":{"rendered":"https:\/\/moneymall.ae\/credit-blog\/?p=2210"},"modified":"2021-03-07T07:42:16","modified_gmt":"2021-03-07T03:42:16","slug":"balance-trasfers-and-credit-scores","status":"publish","type":"post","link":"https:\/\/moneymall.ae\/credit-blog\/balance-trasfers-and-credit-scores\/","title":{"rendered":"5 things you didn\u2019t know about balance transfers and credit scores"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Balance transfers are a good way to pay down an enormous credit card debt. However, balance transfers can also hurt your credit score. It is necessary for all credit cardholders to know these five facts to prevent that from happening<\/span><\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_2211\" aria-describedby=\"caption-attachment-2211\" style=\"width: 471px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-2211\" src=\"https:\/\/moneymall.ae\/credit-blog\/wp-content\/uploads\/2021\/03\/bank-transfer.png\" alt=\"balance transfers\" width=\"471\" height=\"471\" \/><figcaption id=\"caption-attachment-2211\" class=\"wp-caption-text\">balance transfers<\/figcaption><\/figure>\n\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b><a href=\"https:\/\/moneymall.ae\/credit-blog\/5-balance-transfer-credit-cards\/\">Balance transfers<\/a> can help improve a credit score:<\/b><span style=\"font-weight: 400;\"> Someone with an excellent credit score may qualify for some of the best balance transfer cards. However, those who cannot still qualify for good deals, but may not be granted initial credit lines that are sufficient enough to transfer large balances. Customers in this situation want to ask their credit card issuers, financial institutions or banks to consider lowering their rates on any balances that are not being able to get transferred<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>New credit and hard enquiries: <\/b><span style=\"font-weight: 400;\">Every time a customer applies for credit, a hard enquiry is made on the credit report. A hard enquiry can cause a credit score to drop, depending on the nature of the enquiry. To minimise the effect on the credit score, customers must do the research and apply for only one card. Alternatively, a small personal loan may be a better option to consider instead of a credit card in the long run. <\/span>Make sure you remember that banks don&#8217;t transfer balances between two of their own credit cards to save money from the cost of interest that they have to incur<\/li>\n<\/ul>\n<ul>\n<li><b>Balance transfers can also improve a credit score:<\/b><span style=\"font-weight: 400;\"> Applying for a new card for balance transfers can reduce the load on existing credit card or loans and reduce your credit utilisation ratio. Reducing the credit utilisation ratio will show up on your credit report and improve your credit score gradually. However, if customers are not careful, then they may ruin their credit score by missing payments and using up way too much credit.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Money saved on interest with a balance transfer can help shrink overall debt faster. Lowering the amount of outstanding debt on your credit account is always a good way to deal with unforeseen problems. This way, your credit utilization ratio also gets checked and you rid yourself of any potential complications that may arise when you\u2019re trying to transfer balances.<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/li>\n<li aria-level=\"1\"><b><a href=\"https:\/\/moneymall.ae\/credit-blog\/credit-utilization-rate\/\">Credit utilization ratio<\/a>: <\/b><span style=\"font-weight: 400;\">Credit utilization is a big factor of an overall credit score calculation; new credit availability from any type of card will increase a credit allowance and lower a customer\u2019s credit utilization ratio. It can be best to find a card with a credit limit much higher than the amount a consumer looks to transfer, but unless you\u2019ve received a pre-approved offer card, issuers won\u2019t generally commit to what level of credit line they will extend until you apply and they pull your credit report.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Immediately exhausting the credit limit on a new card can harm a score under certain circumstances so it is incredibly important to determine your new credit line before deicing how much of your balance to transfer<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\"><b>Avoid bad credit habits: <\/b><span style=\"font-weight: 400;\">After transferring a balance, it is important that a cardholder assesses how they accumulated the high balance in the first place. Review past statements and evaluate where the money was actually spent. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Steps to take forward might also include establishing a new or stricter budget or making drastic changes to get on track for better debt management. A credit counsellor may also prove to be helpful in some cases.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Balance transfers are a good way to pay down an enormous credit card debt. However, balance transfers can also hurt [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[2,4],"tags":[69,586,36],"class_list":["post-2210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-cards","category-credit-score-report","tag-balance-transfer","tag-credit-scores","tag-credit-scores-in-uae"],"_links":{"self":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/comments?post=2210"}],"version-history":[{"count":1,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2210\/revisions"}],"predecessor-version":[{"id":2213,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/posts\/2210\/revisions\/2213"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media\/2212"}],"wp:attachment":[{"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/media?parent=2210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/categories?post=2210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymall.ae\/credit-blog\/wp-json\/wp\/v2\/tags?post=2210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}