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Credit and Debit Cards
Improving Your Credit Rating
Money Management
Credit

How will transferring 95 of credit balance to a lower interest card affect your credit rating?

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Wiki User
December 06, 2007 11:40PM

It won't affect your credit rating. But it is the smart thing to do because you will end up paying less interest each month. Credit score looks at (among other things) what percentage of your credit limit you are using. So if you have 3 cards each with a limit of $10,000, that's $30,000 maximum limit. If you have a total balance of $15,000 between the three cards, that means you are using 50% of your maximum. Lenders like to see you at 35% or less of your maximum.