CIBIL: Opting for balance transfer on credit cards? 4 primary ways to ensure it doesn't affect your credit score

livemint.com:

credit score, also known as CIBIL score, to some extent. For instance, if someone has two credit cards with bills of ₹4.5 lakh each. The card holder can transfer the outstanding bills of these two cards to a third card whose maximum limit is, say, ₹12 lakh and the rate of interest is lower than that on the other two cards.

This way, not only does the cardholder pay a lower rate of interest, but also gets an extra time to clear the dues. There are, however, several ways to minimise the impact of balance transfer on your CIBIL score. Apply for transfer wisely: When you apply for a new credit card for balance transfers, try to choose offers where you have a high chances of approval.

Applying for multiple credit cards within a short period can negatively impact your credit score due to hard inquiries. So, limit your applications to those you're most likely to qualify for. Avoid closing old accounts: Remember that when you happen to close old credit card accounts, it can negatively impact your credit score by reducing your overall available credit and shortening your credit history.

Instead of closing old accounts after transferring their balances, consider keeping them open, especially if they have a positive payment history. Monitor credit utilisation: After transferring balances to a new card, be aware of your credit utilisation ratio. Ideally, try to keep your credit utilisation below 30 percent of your available credit limit on each card.