Applying For A 2nd Balance Transfer Credit Card

Getting multiple 0 balance transfer credit cards is possible. It is not always the best choice though as it can negatively impact your credit score. You also run the risk of having your applications for the card eventually rejected.

0 balance transfer credit cards are a good way to get out of debt. The best choice is to do one, work hard and tighten your budget, so that you can pay off your debt within the introductory interest free period. Once that period has expired any remaining portion of your balance transfer will incur a significantly higher rate of interest. Some people think that the simple answer is to just get another no interest balance transfer card and make another transfer. This process then could go on indefinitely. However, that is not the most advisable choice. Yes, it can be done but the more important question is should it be done. The answer to that is it is probably not the best choice.

Affects of applying for another 0 balance transfer credit card:

1. Negative mark on your credit file. If you wind up with a new card that is basically maxed out due to your balance transfer your percentage of debt to credit ratio goes up. While there are no hard and fast rules for debt to credit ratio you ideally want that number to remain low. This will effect your ability to get loans for cars or homes and the interest rates your are offered in the future for any line of credit.
2. Getting rejected. At some point credit card companies will figure out that you are using 0 balance transfer credit cards to revolve your debt rather then pay it off. They see this type of customer as a risk so they will eventually reject your application. Whenever you get rejected it is noted in your credit file which further increases your risk on future credit cards. If you have waited until your introductory period is close to expiration and you get rejected your remaining balance will start to gain those high interest rates.

If you must use 0 balance transfer credit cards to revolve you debt you can. But, it is not the best way to maintain a good credit file. It is also a great deal of work to keep track of when to apply for new cards and when all of those payments are due. The smarter choice is to set up a budget and pay that debt off during your interest free period. You will save money and will be able to breathe a sigh of relief that your debt is paid off and you can finally stop juggling credit card bills.