Thursday, September 9, 2010

0% offers & credit score?

My question is in regards to one's credit score while trying to

transfer balances over on 0% offers.



I understand that it is a double-edged sword in many of the financial moves we make in regards to our credit history, but I'm not satisfied with that as an answer.



If one is juggling around 0% offers, how does it impact your score and how can one best go about it without impacting your score too dramatically.



Example - 0% offer expires for $10k. I open a new $10k, 0% card. My balance to limit ratio has just improved, but I now have more revolving debt on my history. Does closing off the previous one, opened for just a year for the 0% offer, improve your score by lowering your total revolving debt, or hurt it since your balance to limit ratio is higher and the account was only open a year.