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Do Balance Transfers Hurt Your Credit or Affect Your Credit Score?

6 min read

Last Updated: January 29, 2026

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Key Takeaways

A balance transfer may help you manage high-interest credit card debt.
Balance transfers may help your credit score by reducing your credit usage and making it easier to make on-time payments.
Balance transfers may impact your credit score by leading to a hard credit check or lowering the average age of your accounts.

A balance transfer, which means shifting a balance from one credit card to another, may help you take control of difficult debt. Most balance transfers include moving your balance to a credit card account with a lower interest rate or a low introductory annual percentage rate (APR) to get a break from high interest charges that make debt challenging to manage.

A balance transfer to a new credit card with a low promotional APR may offer some relief if you’ve been struggling with credit card bills. You may be able to pay off debt faster, consolidate payments, or save money on interest.

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In many cases, a balance transfer is a helpful tool. But before you transfer a balance, it’s important to understand the potential effects on your credit score.

How do balance transfers affect your credit score?

A balance transfer may affect several factors that shape your credit score.

New credit: A new credit card application means a hard inquiry into your credit report. A single hard inquiry may have an effect on your credit score. Multiple hard credit inquiries within a short time frame may lower your score further.
Credit utilization: A balance transfer may help increase your total available credit, which decreases your credit utilization ratio, or the portion of your credit in use at one time.
Age of your credit accounts: If you use a credit card balance transfer and then close your old credit card account, you’re decreasing the average age of your credit history.
Payment history: By taking on a balance transfer with your new credit card and diligently paying down your balance each month, you build a payment history. Using a balance transfer for debt consolidation may streamline your payments.

How balance transfers may help your credit

While a credit card balance transfer itself may not automatically increase your credit score, transferring your balance may lead to some longer-term benefits for your credit score.

Lower your credit card balances: After you transfer your credit card balance to a card with a lower interest rate, you may potentially pay it down. Reducing your credit card debt lowers your credit utilization ratio, which may help your score.
Increase your available credit: By opening another credit card account and accessing an additional credit line, you increase your available credit, lowering your credit utilization ratio (as long as you keep your new spending to a minimum).
Establish a strong payment history: A credit card balance transfer may make your monthly payments manageable, may help you make on-time payments each month. A strong payment history usually has a positive effect on your credit score.

Did you know?

If you want to continue using your new credit card after you pay down your debt, you may want to consider transferring your balance to a rewards credit card. With Discover^®, you earn rewards on all purchases every time you use your card.

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How balance transfers may hurt your credit

Despite the potential advantages, balance transfers may pose some risks to your credit score.

Lower the average age of your accounts: Opening a new credit card may bring down the average age of your accounts, especially if you cancel the card from which you’ve moved a balance.
Increase your debt: A balance transfer only helps you manage debt if you use your card responsibly. If you overspend without paying down your transferred balance, you may end up increasing your credit utilization ratio.
Trigger a hard credit inquiry: If you apply for a new credit card with a balance transfer offer, the credit card issuer will likely conduct a hard credit inquiry to review your credit report. A hard credit check may lower your credit score.

How to use a balance transfer to avoid hurting your credit

Ultimately, your credit decisions and financial habits determine the effect that a balance transfer has on your credit score. The following strategies may help you leverage a balance transfer to manage your credit score.

Review the terms

Before you accept a balance transfer offer, make sure you understand the terms, conditions, and fees. For example, you typically have to pay a balance transfer fee when you move your debt to a new credit card. Before transferring a balance, ensure that the benefits and savings outweigh the cost. If the fee would exceed the amount you’d save in interest charges, transferring the balance may lead to more debt.

Develop a repayment plan

Taking proactive steps to pay off your existing debt is key to supporting your credit score after a balance transfer. If your new card has a low APR introductory period, you may have a limited time frame to pay off your balance without worrying about high interest charges. Try to make more than the monthly minimum payment whenever possible to reduce your debt and credit usage. Avoid new spending until you’ve paid the balance in full.

Keep your credit card accounts open

If you’re able to manage both credit cards responsibly, try to keep both your old and new credit card accounts open. You might feel tempted to close your old account after you transfer the balance, but doing so brings down your available credit and lowers the average age of your accounts. Similarly, you may want to close your new account after paying the balance off. But it may be beneficial to keep the account open because the credit limit on two cards may keep your overall credit usage lower.

Maintaining both credit card accounts may support your score. However, if one or both credit cards make it difficult to control your spending, closing an account may be the better choice.

The bottom line

When considering a balance transfer card offer, it’s important to read the fine print carefully. Make sure you understand all the expenses involved and think about the cost of the balance transfer versus the long-term consequences of carrying high-interest debt. Repeatedly transferring your balances and jumping from card to card without staying on top of payments may harm your score. But if you work hard to pay off your balance and maintain healthy habits, your score may improve.

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