A balance transfer can cause your credit score to drop if you close the previous card or you transfer the balance to a card with a lower credit limit (or both). Closing a credit card can not only reduce the amount of available credit you have, but it could also affect the length of your credit history.  If you don’t have other cards with a long credit history, consider keeping the older card open if it doesn’t have an annual fee.  And if you transfer a balance that’s close to the card’s limit, your score may suffer for a while. But if you pay down your debt, you’ll eventually have a better credit utilization rate, which can help your credit score.