Do Balance Transfers Hurt Your Credit Score?

Any credit product you apply for or are approved for will have an effect on your credit score. While some of the possible effects can’t be avoided, others will depend on how you manage your account.
In our guide, thimbl explains the different ways that a balance transfer credit card could change your credit score.

Do balance transfers hurt your credit score?

A balance transfer credit card could affect your credit score. Whether the effect is positive or negative will largely be down to how you manage your account.
Below, we’ve listed some of the ways that your credit score could be affected by a balance transfer credit card.

1. The application process
   When you make an application for a credit product, the provider will carry out a creditworthiness assessment, which will involve a hard search and/or an Open Banking check. A hard search will be visible on your credit file for up to 12 months, and undergoing multiple hard searches within a short period of time could damage your credit score. With this in mind, you should try to keep your credit applications to a minimum.
   You can check your eligibility for the thimbl Balance Transfer Credit Card with no impact to your credit score.*


2. Repayments
   You’ll need to make at least the minimum repayment amount due on your account balance each month. If you make a late payment, you could be charged a fee by your provider, and your credit score could decline. In addition to this, if you have a promotional offer on your account, such as a period of low or no interest, you could lose access to the offer.
   If you’re struggling to make the repayments on your credit card, please contact your provider. They will be able to discuss any options that may be available to you to help reduce some of the financial pressure you’re facing.
   Worried about money? We’ve included some resources at the bottom of the page.


3. Your old credit card(s)
   What happens to an old credit card once you’ve transferred the balance?
   In this situation, you have two options: either contact the provider of your old credit card and ask them to close the account or keep it open.
   There are potential pros and cons to both options, and it’s really up to you to decide what you do with your old account(s).



Option	Potential Pros	Potential Cons
Keep your old credit account open	A credit account contributes to your overall credit utilisation; that’s the total amount of money available to you across all forms of borrowing. The lower your total credit utilisation, the better the impact on your credit score.	You may be charged an annual fee. Fraud risk. If you keep your account open but don’t keep a close eye on it, you may not notice any fraudulent activity. With another line of credit available to you, you could be tempted to spend money that you don’t need or can’t afford to repay.
Close your old credit account down	Could reduce the temptation to spend money. Fewer accounts to manage. You could avoid any annual fees associated with the account.	Your available credit amount will decrease, which will affect your overall credit utilisation amount.



4. Your credit limit
   It’s also important to ensure that you stay well within your credit limit. If you try to spend over your credit limit, your transaction could be declined.


5. How you use your credit card
   You should try to avoid using your credit card to withdraw money from a cash machine. This is known as a cash advance and could be viewed as poor money management, which in turn could lower your credit score.

Does transferring a balance look bad on your credit report?

Transferring a balance in itself won’t look bad on your credit report, but as we talked about in the section above, there are many factors that could impact your score.
For example, making multiple credit applications in a short space of time will leave a mark on your credit file and could be viewed negatively by potential lenders.

The thimbl Balance Transfer Credit Card

The thimbl Balance Transfer Credit Card comes with a personalised starting credit limit between £500 and £2,000, with 0% interest on balance transfers for six months from the date your account is opened.
It’s important to note that once the 0% interest-free period ends, any balance remaining will be charged interest at the standard rate.

Representative example: Assumed borrowing of £1,200 for 1 year, at a purchase rate of 39.9% (variable), Representative 39.9% APR (variable). 3% balance transfer fee (or £3, whichever is higher.

You can transfer up to 97% of your available credit limit, and you will be charged £3 or 3% of the balance, whichever is higher. We’ve included some examples below. Please note that these examples are for illustrative purposes only.

Check your eligibility for a thimbl Balance Transfer Credit Card

You can check your eligibility for a thimbl Balance Transfer Credit Card if you:

• Are between the ages of 18 and 70;
• Are a UK resident with at least 1 year's UK address history;
• Have a monthly net income of at least £800;
• Have an active credit account that has been open for a minimum of 12 months; and
• Do not already hold a Zable credit card.

thimbl is a credit broker. The thimbl credit card is powered by Zable, a trading name of Lendable Ltd. Lendable Ltd is unable to consider applications from anyone who has declared bankruptcy or is in an Individual Voluntary Arrangement (IVA).

5 reasons to add the thimbl Balance Transfer Credit Card to your wallet

1. Check your eligibility for a thimbl credit card with no impact on your credit score.*


2. You can transfer one or more balances to the thimbl Balance Transfer Credit Card and enjoy 0% interest for six months from the date your account is opened.


3. The thimbl Balance Transfer Credit Card comes with a personalised starting credit limit between £500 and £2,000.


4. If approved, you could access your virtual thimbl credit card the same day, with your physical card arriving in the post in 5-7 working days.**


5. thimbl is rated ‘excellent’ with over 4,500 positive customer reviews.

What to do if you’re worried about money

Money worries are sadly very common, and they’re nothing to feel ashamed of.
Please know that you can get free, confidential advice on a range of money and debt topics through the following charities and organisations: StepChange, MoneyHelper, Citizens Advice, and National Debtline.

*Zable is a trading style of Lendable Ltd. If you choose to make a full application, a creditworthiness assessment will be carried out by Zable. This will consist of a hard search and a further check powered by Open Banking. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time could have a negative impact on your credit score. Any credit obtained upon successful application will be provided by Lendable Ltd.

**Access to the virtual thimbl credit card is subject to further checks, including an Open Banking fraud check.