Seeking relief from credit card debt?
Many like you are turning towards credit card balance consolidation by transferring all the balances from all their credit cards onto one credit card offering an introductory 0% deal.
Refinancing this way is a smart idea and great for reestablishing a great credit score - provided you act smart and take advantage of the introductory period, paying off as much of your credit card debt as possible.
More about Those Credit Cards Balance Transfers
Consolidating all your credit card balances onto one can be a great way to save money. If you have high amounts of debt, getting approved for the credit cards with the best possible rates, will be difficult in itself.
Just make sure that even if it isn’t 0%, the interest rate should be lower than what you are presently paying on your current credit cards. In fact, search credit card deals that expressly display approval scores that are close to your present credit scores.
Do NOT use the new card to make new purchases or you will never be able to fix your bad credit.
Your Credit Score Will Improve… Slowly!
A balance transfer can significantly affect your credit utilization ratio. In layman terms, it is the amount of credit you are using divided by the amount you actually have available.
This ratio can significantly impact your FICO credit score. In fact, the credit utilization ratio accounts for one-third of your credit score.
Keep the credit utilization ratio below 30% and you are good; your creditors will like you, and this will reflect on your credit score.
But since you have a high amount of balance, and chances are that you have been paying off minimum balances, your credit utilization ratio must be higher than 30%, leading to lower credit scores and underwriters who are very worried!
Consolidating the balance of all your credit cards onto one with lower interest rates and higher credit limit can help lower the credit utilization ratio significantly. It is quite possible to increase your credit score by ensuring that your credit utilization ratio falls below 30%. This holds for per card credit utilization ratio and across all the credit cards in your name as well.
This is just one of the effective and efficient credit repair tricks? However, if consolidating credit card balances and refinancing isn’t a viable option for you, try building up your credit with these secured credit cards right here with us at QuickCreditRepair.