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Scott Bilker is the founder of DebtSmart.com and the author of Talk Your Way Out of Credit Card Debt, Credit Card and Debt Management, and How to be more Credit Card and Debt Smart. Send your questions about money, credit, loans, mortgages, or debt, to him at: Scott Bilker, PO Box 563, Barnegat, NJ 08005-0563 or online at: http://www.debtsmart.com/askscott

Scott,

I would like to use a credit card introductory rate to pay off a bank loan. I will need to borrow $13,000.00 credit to pay off the loan. In order to do this, I will need to open two new credit cards, preferably with 0% interest for six months. I would then like to transfer the balances on those credit cards to new credit cards with low introductory rates. How often can I continue to transfer to new cards with introductory rates?

I have heard that if my credit report shows too many credit card company requests within one year that I will be turned down for new credit cards. I have also read that I can request credit card issuers not to run a credit report on me--so that my credit report will not show that I have applied for several credit cards in a short period of time, and thus I would be extended credit by new credit agencies. I thought all credit card companies would only issue credit if they first run a credit report on the applicant. Is this true, or do the companies automatically run a credit report on the applicant every time a balance transfer request is made?

Gail

You're being very DebtSmart® by transferring your balances to lower rates. Zero is always the best rate! Right now I have four cards offering me 0% for one year!

You can continue to transfer your balances to lower cards in perpetuity! I have been transferring my balances to low rate deals for over a decade. About six years ago, I was told that these deals would end however, they've only become more frequent.

Last year credit card companies mailed five billion credit offers! That's up from three billion in the year 2000. I doubt it's going to be slowing down any time soon. And because of that fact, the consumer is in control! We have the power to decide which banks we spend our interest charges on to buy their money.

It is true that when you apply for credit, the bank looks at how many credit-inquires are shown on your credit report. The more inquires, the more negatively it could, and I must stress, could affect your chances of getting new credit. Just because you have many inquires doesn't mean you're going to get turned down for new credit. Each bank has its own criteria for determining who to lend to and how much credit to allow.

By the way, your current creditors also take a look at your credit from time to time. This also shows up as an inquiry to your credit report. I have a dozen inquires on my report and it has never stopped me from getting new credit.

The most important factor is that you have paid on time. Don't be late! That's what will hurt your chances the most. Of course, judgments and repossessions don't help either.

If you do get rejected for credit, always remember to request a copy of your credit report from the credit reporting agency that supplied that data to the creditor that rejected your application. This report is free if you request it within 60 days of being rejected. Be sure to review that report for errors and dispute any inaccurate information.

You cannot request that a bank does not look at your credit file. Well, I guess you could make that request but they would say, "Okay we won't look, but you won't be receiving any credit from us."

I doubt it's a standard for banks to review your credit report prior to completing a balance transfer on an existing account. However, they have probably warned you in their account terms that they can look at your credit report at anytime.

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Reader comments about this article:

"I have wondered and also heard about the same as your reader. I am happy to have this information. I will be 'balance transferring' without worry in the future. I really enjoy alot of the articles. They help to understand what is to be done next to be able to get out of credit card debt" 
--Dave

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