Everyone's profile is different but it really depends on a number of factors. Your score could even go up as a result! Rounded up, you'd be looking at 79% utilization on the one card which can temporarily ding your score. However, you score FICO bonus points for having balances reporting on less than 50% of your credit cards. Once the new balances are reflected on your credit reports, that would factor in as well as any points you were penalized for the utilization on those now-paid cards. On the other hand, you will likely lose some points due to simply opening the new account, a probably decline in your average age of accounts, and possibly for the HP (or HPs) you received when applying for this new card. What was the individual utilization of each card previously? What was your overall utilization (total balances divided by total credit limits)? What will your overall utilization be now? Don't forget to factor in any new charges you'll be making on the other cards as well as any balance transfer fees.
Having high util on a single card won't necessarily cause a score to tank, and utilization has no memory so saving $1200 in interest over 10 months in my opinion far outweighs any temporary dings to your score.
@Anonymous wrote:Hi Everyone, I was approved for a credit card with a $6,500 limit with no interest for 12 months. I would like to transfer a balance of about about $5,100 from high interest cards. That would leave the other cards' balances at $0, but will come very close to my $6,500 limit by close to $1400. I was wondering if coming close to maxing out my card would adversely affect my score, or would it help that the other store cards are at $0. I can conservatively pay about $500 a month and pay it before 10 months so it woun't be for that long and I'll save about $120 a month in interest.
1. It would add points to pay other accounts down to zero, but would cost points to have a card with such high utilization. I don't have enough information to guess which would outweigh the other.
2. Is there a balance transfer fee? If so, when you factor in the amount of interest you will save, be sure to factor in the balance transfer fee you will be paying.
3. From a credit score perspective, your safest bet would probably be to just transfer $1885, using it to pay down cards with the highest percentage utilization or to zero out a few cards.
