Hidden Dangers with Credit Card Rolling – Credit Scores.

I would like to take a moment to explain what Credit Card rolling is.  Credit Card rolling is when you incur debt on one credit card and want to transfer a balance to another credit card.

So will Credit Card Rolling hurt my Credit Score? Temporarily, the answer is yes, but only by a couple of points in the long term, no. It my take 1 to 6 months to show the original card paid in full, plus a credit check inquiry and balance for the new credit card. It really depends on how fast a credit card company reports to the scoring agencies. After 6 months your credit history will look better than it did previously. If you are not in the market for a loan, for a new car or house, it is perfectly okay to roll  your Credit Cards.

The hidden danger in Credit Card rolling is adding balance on top of your transfer. It works like this; Lets say you transfer $10,000 at 0% for 12 months, then you go Christmas Shopping and add another $1000 on top of that at 5%. Lets say you pay $100 a month on this same card. What happens is this; you are paying on your new debt, and at the end of the year your 0% will be barely paid on.

If you transfer a balance the first thing to consider is whether or not there is a hidden transaction fee, from either card. And the next thing to consider, is whether to keep your old card or get a new credit card to put additional spending on.