A balance transfer can improve your credit score because it can decrease your credit utilization ratio. The credit utilization ratio makes up 30% of your credit score so it’s a huge factor in your credit history.

When you have a large balance on one card, you may wind up with a high credit utilization ratio. To have a good credit score, you need to have a credit utilization ratio of 10% or less. So if you have a 50% credit utilization ratio, then your credit score will suffer.

If you can split up the balance between another card, you can reduce your credit utilization ratio, which will increase your credit score.