Balance Transfer on Credit Card- Does It Affect Credit History?

Hi guys, I am looking to get a new credit card and transfer the balance from my existing credit card. I am wondering if it will have any affect on my credit history? Also, if I get rejected for the new credit card will that have a negative impact on my credit history? Thanks in advance.

Comments

  • +2

    Yes, and Yes.

    • Oh wow and here I was thinking I could live interest free forever transferring from card to card. Lucky I never put that plan into effect.

      • You can. As long as you don't have too many applications, it's fine. It was previously mentioned that some banks look for no more than 2 card applications in the past 6 months.

        Also, once you have 2 (or more) credit cards open, you can just keep transferring between them with no effect on your credit score. Opening a new card is listed on your credit report, but not your balance, how much you're repaying each period or if you've applied for a balance transfer.

        I've been bouncing around balance transfers for years without issue. I use the money to put into the mortgage to reduce interest there.

  • Yes, its an application for new credit! If its rejected, the enquiry will appear on your credit report and lower your score either way.

    • Rejected or.not, The credit enquiry will always appear.

      • Yes, on your credit report, there's no differentiation between:
        - Applied, approved and accepted
        - Applied, approved and not accepted
        - Applied and denied

  • +1

    Applying for a new credit card will affect your credit history, but requesting a balance transfer on top of that will have no additional impact.

    In terms of the effect a rejection will have on your credit report, there's no differentiation between:
    - Applied, approved and accepted
    - Applied, approved and not accepted
    - Applied and denied

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