How does credit card hopping affect your credit score?
Jul 16, 2009 in
Credit
Grappler
About 5 years ago we accumulated quite a bit of credit card debt. Maybe about 4 years ago, we combined all the debt onto one 0% card, since then I have been “card hopping” to continue to have a 0% apr. I always pay on time & more than the minimum payment. I would like to know if card hopping will hurt our credit score. Thanks.
About 5 years ago we accumulated quite a bit of credit card debt. Maybe about 4 years ago, we combined all the debt onto one 0% card, since then I have been “card hopping” to continue to have a 0% apr. I always pay on time & more than the minimum payment. I would like to know if card hopping will hurt our credit score. Thanks.
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9 comments
Byron W on July 18, 2009 at 8:08 am
Yes it will – every time you apply for credit, your score is reduced
Ledos81 on July 20, 2009 at 2:31 am
Yes it will hurt your credit score.
websterjdjr on July 23, 2009 at 3:52 am
well when one card gets paid off from another card company ,then no credit payment history is made. they know what you are doing. one day it will all go south.so while you are above water sooner or later the titanic will sink!
cuddlesam on July 23, 2009 at 8:31 am
FYI … it used to be that to have good credit they would suggest closing accounts and only leaving a few open…. things have changed. Now you get a better score the longer you have the same credit card. So, if you have to close an account, make it a fairly new one. Don’t close your old accounts.
Jeremy P on July 23, 2009 at 5:56 pm
Yes, it’s true– switching credit cards on a regular basis will have a slightly negative impact on your credit score. But this is only short-term. If you aren’t taking out a new mortgage or other BIG loan soon– I wouldn’t worry about it too much. Over time, the negative impact of the new credit inquiries will dissipate and your credit score will return back to normal.
Amanda H on July 26, 2009 at 11:05 am
Absolutely it hurts.
You are:
Racking up inquiries
Lowering the account history/length (they want you to keep the same crads for a long time!)
Messing with your “utilization ratio” which is balance vs. limit by opening and closing cards.
my2cents on July 28, 2009 at 3:40 pm
There was a question posed to a Personal Finance expert in the LA Times several months ago about this subject. Unfortunately, I do not remember exactly when.
Their basic response is similar to others here about excessive inquiries but at least theoretically it can be done with minimal impacts.
I think all agree that it is a dangerous game to play and if something is missed, there will definitely be big impacts.
Good Luck.
iceman on July 31, 2009 at 4:14 pm
Yep..but..
Maybe not as much as people on here are saying. Paying bills on time is still the most important factor in your credit score. And then the amount of credit line available to you. So yes it may hurt a little, but if you are saving alot in interest it would still be worthwile to do that. That type of credit damage can be easily repaired.
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