If your credit-card bills are putting a damper on your new year, it may be time to transfer your balances to one of the low-rate offers in your mailbox. But keep in mind that balance transfers can hurt your credit. Just how big the ding will be varies based on the formula used to concoct your credit score. That includes the number of new accounts you've opened and your credit-utilization rate--the amount of money you owe as a percentage of all available credit, which should be about 35 percent. If your credit is good, the temporary nose dive won't hurt you. In fact, it might help your score, since opening a new account temporarily increases the amount of credit you have available. But if you're already on shaky ground (a credit score below 559), the dip in scoring could get you further in the hole. The good news is, the credit-score dip will last only a few months, especially if you make payments on time. For more info go to bankrate.com , creditcard assist.com or cardweb.com . And don't forget to get a free copy of your credit report at annualcreditreport.com .
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
