How will my credit score be affected?

Question

I am considering transferring apprx 2500 at currently 7.99% w/ 3% min monthly payment - to a card with a 9500 limit and w/ 5000 currently on it.(also at 7.99%, but a min monthly payment of 2%) - the 2500 I wish to transfer would be a 4.99%, which is awesome - but, will being at nearly 80% of my total limit on this card affect my credit score. I have several cards, most for business use (DBA not INC or LLC) . Total outstanding debt is at apprx 25%-30% of total credit being extended to me with on time payment history, most being open several yrs and a touch more than minimum being paid on each per month. I dont want to do the transfer, even at 4.99%, if it will affect my credit rating adversely - thanks for your help.

Answer 1

Listen to Sandy she/he is the only one who gets it!  Not talking complete debt to income ratio that will not change but you do not want any one account to have a balance over, ideally, 30 percent of the credit limit.

Answer 2

the debt to balance ratioon your credit is figured overall credit and only 30% of your score. If you leave the one card open but do not use it you will be fine. only transfer the balance do not close the account. another 30% of your score comes from long standing accounts so don't close anything if you can avoid it. You may take a 2-5 point hit for the inquiry but it will go away with in a few months... again dont close the old account though

Answer 3

Your feeling on the matter is correct. Your credit will be adversely affected because your debt to income ratio will be too high. What you need to concentrate on is paying down the balance of $2500 on the higher interest card. Then you can get working on lowering the $5000 balance on the lower interest card.

Answer 4

Your credit score would take a hit because you would be utilizing well over 30% of your available credit on the card you transfer too.

That would stay until you brought that total under 30%, at minimum, of your available credit on that card.  It would possibly slightly change with each payment.