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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 6 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
Gail,
Thanks for writing!
You're being very DebtSmartŪ 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! My experience is certain
proof of that result. I have been transferring my balances to low
rate deals for over a decade. About 6 years ago I was told that
these deals would end however, they've only gotten more frequent.
Last year credit card companies
mailed 5 billion credit offers! That's up from 3 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, couldeffect 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. And you get this report for 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.
The bottom line here is that: 1) It's
smart to transfer your balances to lower rates 2) Credit inquires
may or may not hurt you depending on each bank's criteria. 3) If you
are rejected for credit, always get a copy of your report and check
it for errors. And take a look at all the credit inquires.
Good luck!
Regards,
Scott
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