Balance transfer for dummies...

[Anonymous]

I have about $5000 on a credit card that I would like to aggressively pay off over the next year or so (cutting back and a side hustle). I’m paying about $90 a month in interest which seems like a waste. Thinking a balance transfer would be a good idea, my only concern is the impact on my credit score (I’m buying a condo within the next year). Thought?

[Anonymous]

Anonymous wrote:I have about $5000 on a credit card that I would like to aggressively pay off over the next year or so (cutting back and a side hustle). I’m paying about $90 a month in interest which seems like a waste. Thinking a balance transfer would be a good idea, my only concern is the impact on my credit score (I’m buying a condo within the next year). Thought?

If your overall score is good - I wouldn't worry about impact. Yes, opening new credit card would lower your score a bit temporarily, but it would bounce back right away.
Beware of balance transfer fees, they might be as high as 5%, so read fine print carefully before applying for new card.

[Anonymous]

As long as you don’t close the old card, your score should stay the same or go up since your are increasing your available credit without adding to your debt.

[Anonymous]

Anonymous wrote:As long as you don’t close the old card, your score should stay the same or go up since your are increasing your available credit without adding to your debt.

+1, part of your credit score is using too much credit. It looks better to have a $5k balance with $5k more available than $5k balance and $0 more available to borrow.

Also, through nerdwallet.com I found a credit card through Alliant that had $0/0% balance transfer fees, I did have to open up a saving account with them, with $5 deposit. Not sure if they still do that, this was a couple of years ago.

Finally - if your side hustle is an MLM think carefully before committing - almost everyone loses money and friendships on those.

Good luck!