Many people jump on the opportunity to get a balance transfer credit card because it will help them save money on interest rates and other finance charges. But there is a downside to balance transfers. This is so important that it makes up nearly a third of your scoring system. The closer you are to utilizing the limit of your credit, the lower will be your score.Whenever you get a balance transfer card with a lower limit and transfer outstanding debt to it, your percentage of utilization of the new card will become higher and that will lower your score instantly. It is possible to regain any lost ground by quickly paying back the debt and bringing down the outstanding balance quickly. Aiming to keep your card balance below 30% of your limit is a good strategy to maintain a healthy score.Reduced Credit Age15% of your score is governed by the age of your credit. This tracks the duration for which you have been using credit. It is derived as a composite drawn from the age of your ralph lauren pas cher,ralph lauren soldesoldest account, and the period over which you have actively used your cards. It is simple mathematical reality that when you add newer accounts with shorter duration, your average age drops. This means your score will drop proportionately.Applying for Credit Affects Your ScoreEach inquiry has a small adverse impact on your score. Recent applications make up a tenth of your rating score. And just by applying for a new balance transfer card, you are putting a dent in your score. This factor has relatively lesser impact than the other two, and only recent inquiries from the last 12 months are considered in score calculations.The True Cost of Balance TransfersTransferring your card balance from a high interest card to one with a lesser interest rate, or a card that offers other advantages, can be a smart decision and save you money. At the same time, it is wise to keep in mind that an application for balance transfer cards can have a potential adverse effect on your score.

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