Q & A: Credit Card Balance Transfers

Scott,

A friend told me that they heard that continually doing balance transfers from one credit card to another can negatively affect my credit rating and that they also heard that there is a limit to how many balance transfers I can do. However, they did not know what that limit is. I've read

 in at least one of your books that you are constantly doing balance transfers to whatever is the best offer available at the time.

Is there a limit on how many balance transfers I can do in a year, or even my lifetime? Do specific credit card companies have their own limits? Will the balance transfers hurt my credit rating if I am paying down my credit cards and even paying off others during this process?

Amy


Great question!

I would have the worst credit rating on earth and also have far exceeded my limit of balance transfers if what you heard was true! Actually, one could argue that the exact opposite is the case which is, the more balance transfers you do, the more active you look on your credit report, and the more banks will attempt to get you to transfer your balances to them!

Actually, the more I transfer my balances, the more direct mail I receive from banks asking me to transfer my balances. And when I do transfer my balance from card "A" to card "B," within two weeks, I receive a new transfer offer from "A" asking me to come back!

As far as limits are concerned, you'll only be limited by the market, i.e., by the credit offers that are available to you personally. If banks want your business, they'll need to come up with a good offer. That's how you have to think of it. It's possible that certain companies may have a policy about transfer limits, but I've never heard of such a limit. Based on my daily snail-mail, I doubt there is any limit.