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

Balance transfer on credit cards means moving the outstanding debt of one or more credit cards onto a new card which has a lower interest rate..

This can be a useful tool for managing debt but its important to understand that this may affect your 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..

Applying for multiple credit cards within a short period can negatively impact your credit score due to hard inquiries..

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..