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New Visitor
littlekicker
Posts: 3
Registered: ‎07-14-2007

balance transfer my fiancee's credit, does it hurt her score?

Hello. my soon to be wife is carrying about 5000 on a high APR card (about 28%) And I'd like to transfer it to a 0% Card I have. She's concerned it will affect her credit to do a balance transfer, but I thought it would only effect my credit. Any ideas? We'd save quite a bit and are planing On paying it off ASAP.
Regular Contributor
ah32
Posts: 206
Registered: ‎06-05-2007

Re: balance transfer my fiancee's credit, does it hurt her score?

It will improve her score, possibly affect your score depending on the balance to limit ratio, and thereby transfer her debt into your debt.  Just my two cents, but put something on paper.  "If" something were to happen, you wouldn't want to wind up paying off her shoes.
Established Contributor
trinigal
Posts: 578
Registered: ‎06-18-2007

Re: balance transfer my fiancee's credit, does it hurt her score?

What is the limit on her card?
If the $5000 means her util is greater than 30% then its hurting her, and getting rid of it will help her.
 
A 1-9% util. on CCs is recommended for maximum FICO points
 
You now need to watch your util.  What's the CL on your card?  If the $5000 is going to push you over 30% then it'll hurt you.
 
Why don't you guys just transfer what'll keep you both close to 30-50% util on both of your cards in the first instance, but try to shoot for 30% or below, and then you can gradually work from there.
 
IMHO
 
 
New Visitor
littlekicker
Posts: 3
Registered: ‎07-14-2007

Re: balance transfer my fiancee's credit, does it hurt her score?

Thanks for the replies. Definitely good advice about having something on paper. We both agree on that. We're not really worried about the utilization, has she's at about 50% and my card has a 0% balance. It's more a question, that we heard doing a balance transfer hurt your credit. That is, will the actual act of transferring debt off her card onto mine register as a credit ding against >her? Thanks for all your great information! Ian
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: balance transfer my fiancee's credit, does it hurt her score?

If you are worried about hurting her scores, you should certainly be concerned about utilization :smileyhappy:
 
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New Visitor
littlekicker
Posts: 3
Registered: ‎07-14-2007

Re: balance transfer my fiancee's credit, does it hurt her score?

Definitely get the point about utilization affecting the credit score, but It seems that if my credit utilization is 100%, and I pay it down to zero, then that difference will be almost immediately reflected in my credit score. Vs. if something goes to collections, that takes 7 years to fall off of your credit rating. I'm just wondering if the actual act of doing a balance transfer is a hard "ding", like the something that went to collections, or something that won't even register with the credit bureaus in 2-3months (like temporary change in utilization), and then if it is a hard "ding", is it on her record or mine?
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: balance transfer my fiancee's credit, does it hurt her score?

[ Edited ]


littlekicker wrote:
Definitely get the point about utilization affecting the credit score, but It seems that if my credit utilization is 100%, and I pay it down to zero, then that difference will be almost immediately reflected in my credit score. Vs. if something goes to collections, that takes 7 years to fall off of your credit rating. I'm just wondering if the actual act of doing a balance transfer is a hard "ding", like the something that went to collections, or something that won't even register with the credit bureaus in 2-3months (like temporary change in utilization), and then if it is a hard "ding", is it on her record or mine?

The BT itself doesn't matter.. however, how the BT impacts your particular credit picture certainly does.
 
So.. if you lower her util by BTing to your cards.. her overall util goes down and her scores improve. The opposite happens to you. Your util goes up, and your scores decrease. All of this will take at least 30 days as most CCC only report balances once a month.
 
Even if her util goes up, the change shouldn't be as bad as something like a collection.
 
Obviously the goal here is to save money.. Don't worry about your scores unless you are planning to make a large purchase anytime soon.


Message Edited by Tuscani on 07-14-2007 12:57 PM
Regular Contributor
ah32
Posts: 206
Registered: ‎06-05-2007

Re: balance transfer my fiancee's credit, does it hurt her score?

It doesn't hurt her credit at all.  Her score should improve by lowering her debt.  Balance transfers are not harmful or ding your credit.  Only may lower your score if you transfer a balance that is close to your limit.  Always want to stay at least below 50% of your limit.  Some think 30% is ideal.  Fico scores like 1%-9%.  What is your limit on your card? It would have to be at least at 10K in order for it not to affect your score dramatically.  You may want to call about a cli before you make the transfer. 
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007

Re: balance transfer my fiancee's credit, does it hurt her score?

Yea.. I edited my original post.. I was thinking he was BTing to her. My bad.

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