New Credit card for balance transfer question

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Jack Gagliano

• August 15, 2022 15:43

Hi All,

I have two credit cards that I would like to consildate to a balance transfer card.  My question is that what happens if I apply for a new credit card but they don't give you enough credit to do the balance transfer?  How does that affect my credit score?  Do I just keep the new account and not use it?  I'm assuming that maybe it would be a good thing to have more credit utilization?  I filed chapter 7 back in 2010 so I'm trying very hard not to "be in trouble" again.  I have money in the bank where I could pay everything off, but if I did that, I'd be left with very little in savings, and with the current economy, it scares me not to have any liquidity.

Thanks for any advice.

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  Victor D

  • August 15, 2022 22:00

  Hi Jack!

  Good work maintaining your credit!

  Obtaining a new credit card should increase your available credit, which at the same time lowers the amount of credit you're using; which typically results in a credit score increase. So, whether or not you can transfer your full balance should not make any difference to your credit score, since you owe the same amount of money.

  The main advantage of a balance transfer is to try to lower how much interest you pay on your credit card debt. Ideally, you would transfer debt to a card that has a lower interest rate. 

  13 Best Balance Transfer and 0% APR Credit Cards of August ...

  Best Regards,

  Victor

   

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  Jack Gagliano

  • August 16, 2022 00:29

  Hi Victor!  Thank you for taking the time to reply to my question, I really appreciate it.  I forgot to ask another question though.. One of my worries is that let's say on my chapter 7 discharge, I discharged debt from "credit card company A".  It has been almost 11 years since the discharge was final.  My main scare is that if I apply for a credit card again from "credit card company A", will that company be able to recall the original debt again?  I was reading about zombie debt and that if it was discharged then it is gone, but I just want some reassurance.  Credit cards really scare the crap out of me these days heh.  Thanks again! 

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  Victor D

  • August 16, 2022 16:33

  Thanks for following up on this, Jack!

  We have an informative article about bankruptcy: Bankruptcy: What You Need to Know - NerdWallet

  Since we can't offer personal financial advice, our article suggests consultations with a bankruptcy attorney and a nonprofit credit counselor to better understand your financial situation. The article mentions this as a "pre bankruptcy" activity, but it seems relevant to post-bankruptcy questions as well.

  You could also contact the credit card company with that question before applying for a card, and the individuals who helped you with the bankruptcy 11 years ago such as your attorney and the bankruptcy trustee.

  Cheers,

  Victor

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