Tuesday, October 25, 2011

TRANSFERRING BALANCES

When transferring balances from one card to another, the inquiry on your credit report from a new lender can lower your score by a few points, but the real problem is what you do with the old account. If you close it, your credit limit goes down and your credit-utilization ratio increases if you have debt on any other cards. The best bet is to leave the old account open and keep a zero balance.

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