Does credit card money transfer affect credit score?
When I first tried a credit card money transfer, I was worried it might hurt my credit score. The transfer itself does not do any damage, and the impact on your credit score depends on how you manage it afterwards.
If you pay it back on time, your score stays perfectly fine. However, if you let the balance grow, the bank will start adding interest. And if you miss even one payment, your credit score can drop.
Another thing is that using transfers too often can spike your credit utilisation ratio, which makes you look riskier to lenders.
Here is how I keep money transfers under control:
- I only use them when necessary, not for everyday spending.
- Always, you should repay on or before the due date.
- I make sure my total usage stays under 30% of my limit.
- I keep a close eye on my statements to avoid dues or hidden charges.
So, the credit card money transfer itself is not the problem. It is what you do after that and how you repay the amount. If you repay responsibly, your credit score stays healthy.
Overspending or delaying payments can hurt your creditworthiness. For me, the golden rule is simple, credit card money transfer is a backup option, not something I rely on all the time.