topic Balance transfer causes score drop in Understanding FICO® Scoring

Balance transfer causes score drop

8bitmachinegun — Thu, 29 Oct 2020 17:26:33 GMT

I recently made a large balance transfer from Amex BCE to NFCU Platinum, as my intro APR was about to expire and shoot up to astronomical levels. Now the various credit reporting agencies think I have a large balance on both Amex BCE *and* the NFCU card, causing my credit score to drop about 20 points across the various CRAs. I'm also currently looking for an apartment, and will be having to go through various application processes.

How long will this nonsense take to clear? A month or a few days? Inquiring minds want to know...

Oh and the hit on VantageScore 3.0 was an even tastier 40 points...

Re: Balance transfer causes score drop

Remedios — Thu, 29 Oct 2020 17:38:09 GMT

It will last until Amex reports next time.

Re: Balance transfer causes score drop

AverageJoesCredit — Thu, 29 Oct 2020 17:50:14 GMT

@8bitmachinegun wrote:
I recently made a large balance transfer from Amex BCE to NFCU Platinum, as my intro APR was about to expire and shoot up to astronomical levels. Now the various credit reporting agencies think I have a large balance on both Amex BCE *and* the NFCU card, causing my credit score to drop about 20 points across the various CRAs. I'm also currently looking for an apartment, and will be having to go through various application processes.

How long will this nonsense take to clear? A month or a few days? Inquiring minds want to know...

Oh and the hit on VantageScore 3.0 was an even tastier 40 points...

It happens. Thats why its super important to try and time the bt if you can figure when your statement will cut from both lenders. Its happened to me before but at end of day it rights itself and goes back to normal

Re: Balance transfer causes score drop

8bitmachinegun — Thu, 29 Oct 2020 23:06:46 GMT

Thanks for the replies. I figure it'll take at least a couple of weeks to clear.

Does Amex usually report shortly after your statement date, or do they just do it whenever?

Re: Balance transfer causes score drop

Anonymous — Fri, 30 Oct 2020 01:48:44 GMT

Amex reports right after your statement cuts. Just take a look at your CR from anywhere (CK, WH, etc) and see the date Amex last reported. You can then expect them to report on or about the same date the following month. That could be a few days from now or a few weeks from now depending on the timing of everything.

Re: Balance transfer causes score drop

Jazee — Wed, 03 Mar 2021 20:42:34 GMT

I know this is an old thread but it brought up a thought I had after learning a lot here over the past year... which I am sure is no surprise to most on here but thought I'd mention it.

Just like the BT timing can temporarily hurt your score, theoretically, couldn't you time it to essentially hide the balances from your reports if you have at least two cards where the statement cut-off date is at least as far apart as the time it takes the BT to complete. So if you had two cards with no BT fee you could transfer balances back and forth right before cut-off dates.

Re: Balance transfer causes score drop

Anonymous — Wed, 03 Mar 2021 21:12:28 GMT

I guess in theory that could work, but it would have to be timed with precision and the window of opportunity would be small.

Re: Balance transfer causes score drop

Fletcher2 — Thu, 10 Mar 2022 19:06:11 GMT

@Anonymous wrote:
I guess in theory that could work, but it would have to be timed with precision and the window of opportunity would be small.

...not to mention the potentiality to yield precisely the opposite effect, insofar as the check is written and added to your outstanding balance while the payee sits on the proverbial check for 14 days, then lags in reporting the subsequent reduction.