Welcome, and like a lot of things in credit, it depends.
If the 3 existing cards are at a very high interest rate, and you transfer to a low APR card, that saves you real cash, and also makes it easier to get ahead of the balances to pay them down in a meaningful way. Often times, in a high debt situation, that ability to pay faster is the main consideration.
Beyond that, the utilization of the individual cards, the new card, and the overall utilization does have an impact on FICO scoring, but often the ability to pay the debt off faster outweighs any FICO scoring considerations in the short term. In the long run, the ability to pay down the balances is what will improve your score.
What are the three cards you have, their credit limits, outstanding balances, and APR? How much are you paying now each month on those cards?
What low APR card are you considering appying for?
What are your myFICO scores?
@easyhay wrote:How would transfering the balances from my 3 cards into
a low interest another card effect my fico score, if at all?
Thanks
The FICO algorithms don't take into account how low the interest is. They will take into (a) overall utilization and (b) utilization on each card. And utilization will be based on the statement balance. They don't give you any points for being prudent and saving money on interest.
So if let's say you were to zero out the 3 cards, but be utilizing 75% of the credit limit on the low interest card, your scores won't be great, because 75% is high.
So it depends on what the balances are and what the limits are on the 4 cards.
