How will using low rate credit cards affect my credit score/

Hi Bo,

Quick question for you. I'm wondering how much the following scenario would affect my credit score...

I'm an MBA grad with a great paying job (six figures) but I still have lots of student loans (38k in stafford at 4% and 15k at 8.5%). I just bought a house so I have those loans as well (225k at 6% and 57k at 8.5%). I also have a car loan (18k at 6.5%).

I'm pretty interested in getting rid of my high interest loans - especially my 8.5% student loan.

I have the opportunity to do a free balance transfer with AMEX blue for $20k for 3.99% for the life of the balance. I want to transfer my big student loan to the card at the lower rate, but didn't know how much that would affect my credit score if I decide I'd like to refinance my house, etc.

I know they're all loans and all I'm doing is just transferring to a lower interest rate, but I also thought that student loans don't count against your credit score like consumer debt and credit cards do. So basically, where I have never had any credit card debt, I'm taking on like $20k (even though they're loans I already had).

What are your thoughts on how that would affect my score? and how drastic the change would be?

I could also do a balance transfer from my 6.5% car loan to the 3.99% if that would be better on my score.

My current score - the last time I checked - was around 780.

Thanks for your thoughts Bo!

Cheers,
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The fine print says 3.99 on balance transfers only and all payments go toward balance transfer balances not any charges. So if you make charges you will be chraged regualr interest until you pay of the entire balance tranfer amount. So the catch on the balance transfers is that the card is shackled to the transfer until the balnce is paid off and you might make ONE late payment and bam your interest goes up.

Student loans do count as regualr debt. Who ever told you that is somewhat mistaken. If its on your report its on your report and counts in your score.

You score will be negatively affected IF you get up to 80% agaisnt high credit limit. That is all you need to worry about.

780????
You are a mega star. No worries here.
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got the AMEX Blue as a separate credit card for this exact purpose. I don't intend to make any purchases on the card, only to have the balance transfers (i.e., a 3.99% loan). I have a separate AMEX I use for everything else.

So if I don't use the AMEX Blue for anything else except the balance transfer, should I transfer the 8.5% student loan onto the card (there are no fees either).

Again, thanks for your help.
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Oh yea fees. They usually do make one pay 3% balance transfer unless you do it as you apply. So if there are no fees and your not going over 80% and the rate is lower. Sounds all good
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