- Discussion board

Do you know that using balance transfers over and over....closing accounts....opening new accounts...using them for low introductory rates, closing them and reopening another one can do MAJOR damage to your credit rating. What was once an excellent rating can become poor very quickly without warning.

It is BEST to obtain the lowest purchase APR possible and leave it there with one or two different banks.

Ask any credit reporting agency.

Also did you know you can call your credit card company and ask for a lower rate. You first statement to them should be....I am going to CLOSE my account if I do not get a better rate, remember the word CLOSE is the KEY !!!!

I just tranfer one to other with out closing them or apply for a new credit card and trenfer to the low rate. Also some credit card company send me blank checks. I can write the check for myself deposit to my checking account and then I write the check pay for another credit card. How this thing is going to effect my credit. My case isn't keep opening and closing. Thank you

The statement below about damaging your credit by transfering balances is really unsubstantiated.

"Do you know that using balance transfers over and over....closing accounts....opening new accounts...using them for low introductory rates, closing them and reopening another one can do MAJOR damage to your credit rating"

Paying late is the main thing I can think of that causes long term damage to your credit rating. And this is hard to correct. Negative info stays on your credit report for 7 years. Also, having too many accounts open and/or having very high balances on your credit accounts can affect your ability to obtain additional credit. But you can correct this situation by either paying your balance down or closing some of your accounts.

How many accounts do you have open?

Colin - I think you are absolutely right, from what I know about scoring models like FICO, there are no penalties for transferring balances.

There are, however, penalties for too many open accounts. May be that's what "CreCardEmployee" meant to say. In all honesty, though, I am not certain that this person even knows what the hell (s)he is talking about.

You have made me smile. You sound like the ones who complain when they are offered low credit limits of one or two thousand dollars. The ones who don't deserve a warning regarding the damage they can do to their credit history.

Maybe you should check out www.MyFico.com and read where creditors prefer you have only one inquiry per year on your credit history.

Oh yes, You had written.....
There are, however, penalties for too many open accounts. May be that's what "CreCardEmployee" meant to say.

I meant to say INQUIRIES. It is somewhat difficult to obtain an account UNLESS you have an inquiry on your credit report.

Just curious, but do you also believe a credit card account closes itself once you have paid your balance in full?

In regards to the one inquiriy statement: That may be true, but inquiries have much less of an impact on a credit report for someone who has a "mature" report, meaning it is aged. For those with newer credit reports (1-2 years old), inquiries have more of an effect on your credit rating. I have been successful at disputing and removing those inquiries; it can be done. After only a year of credit history, I have obtained one platinum visa and one platinum mastercard. It CAN be done. Both have grace periods, no two-cycle billing, 9.99% interest rates, and credit limits of $6000 and $8500. At the time of application for each, I had about 6 accounts, 3 closed and 3 open. I also had about 7 or 8 inquiries. It shows you that you can still be approved.