When Is a Credit Card Balance Transfer a Bad Idea?
Generally, balance transfer credit cards can help a lot in managing your debt and allowing you to pay it off. But as with all things, there are always exceptions. Here are some of them. When you’re applying for a mortgage or any other major loan, hold off that balance transfer or do it ahead of time. Balance transfer credit cards entails the creation of new accounts, and new accounts result to a dip in your credit score. Though the dip in the score is minimal-a couple of points-a decrease is still a decrease. Especially when applying for mortgage, you would need every point that you can get from your credit score. Your credit standing can result to a decrease or increase in the interest rates that you pay. The good thing is the credit score dip is temporary. If you pay your dues on time and manage to lessen or eliminate your balance, your credit score is sure to improve. The only thing is, it will take a couple of months to bring your credit score back to where it was before. The probl