Making the Most of a Balance Transfer
Balance transfers can be ideal if you find yourself with a high interest rate, or if your credit card rate increases.
Because creditors can raise your rate periodically, you could find yourself with a credit card that has a higher rate than you had initially planned.
If you've got credit blemishes, you may only qualify initially for high-rate credit cards.
A balance transfer can help you take advantage of improved credit or fantastic credit card offers to save hundreds of dollars.
When undertake balance transfers on credit cards from 24.
99 percent to 0 percent, you could save hundreds of dollars in interest.
Make sure you find a good balance transfer offer.
As a general rule, credit card companies offer balance transfers to get you to open an account.
However, opening too many credit accounts is a bad idea, so you should limit the number of credit cards you open.
Therefore, you want to look for the best balance transfer offer you can find before performing balance transfers on credit cards.
If you transfer your balance to a card that offers a 7 percent annual rate and then get a 0 percent APR offer a week later, you'll be missing out on the great offer.
You shouldn't transfer again to the 0 percent card a week after opening the previous account; you'll get subsequent dings to your credit that negate any benefits you receive from a low intro APR.
Wait until you have a good balance transfer offer, and resist the urge to perform subsequent balance transfers on your credit cards.
If the balance transfer is a promotional offer, pay it off.
Most people use balance transfers on credit cards to get a low or zero percent APR and save on interest.
However, if you're doing a balance transfer to a card with an extremely low interest rage, read the fine print.
Low interest rates are often introductory rates, and may expire anywhere from 90 days to 6 months after you open the account.
If you do balance transfers on credit cards to cards with low intro APRs, either pay the balance off before the intro expires or make sure the regular periodic rate is lower than your current credit card.
If you don't read the fine print and don't pay off your balance transfer in time, you could find yourself paying even more on a credit card with a higher interest rate without realizing it.
Balance transfers on credit cards should be used sparingly.
Generally speaking, opening new credit accounts causes a temporary blemish on your credit report.
If you only open one new account every few years, the ding probably isn't going to negatively impact your credit.
However, if you're opening new credit accounts every three to six months, you'll set off a red flag to creditors and see your credit score plummet.
Don't use balance transfers as a revolving door to avoid making credit card payments; use them sparingly to ensure your credit doesn't suffer.
Because creditors can raise your rate periodically, you could find yourself with a credit card that has a higher rate than you had initially planned.
If you've got credit blemishes, you may only qualify initially for high-rate credit cards.
A balance transfer can help you take advantage of improved credit or fantastic credit card offers to save hundreds of dollars.
When undertake balance transfers on credit cards from 24.
99 percent to 0 percent, you could save hundreds of dollars in interest.
Make sure you find a good balance transfer offer.
As a general rule, credit card companies offer balance transfers to get you to open an account.
However, opening too many credit accounts is a bad idea, so you should limit the number of credit cards you open.
Therefore, you want to look for the best balance transfer offer you can find before performing balance transfers on credit cards.
If you transfer your balance to a card that offers a 7 percent annual rate and then get a 0 percent APR offer a week later, you'll be missing out on the great offer.
You shouldn't transfer again to the 0 percent card a week after opening the previous account; you'll get subsequent dings to your credit that negate any benefits you receive from a low intro APR.
Wait until you have a good balance transfer offer, and resist the urge to perform subsequent balance transfers on your credit cards.
If the balance transfer is a promotional offer, pay it off.
Most people use balance transfers on credit cards to get a low or zero percent APR and save on interest.
However, if you're doing a balance transfer to a card with an extremely low interest rage, read the fine print.
Low interest rates are often introductory rates, and may expire anywhere from 90 days to 6 months after you open the account.
If you do balance transfers on credit cards to cards with low intro APRs, either pay the balance off before the intro expires or make sure the regular periodic rate is lower than your current credit card.
If you don't read the fine print and don't pay off your balance transfer in time, you could find yourself paying even more on a credit card with a higher interest rate without realizing it.
Balance transfers on credit cards should be used sparingly.
Generally speaking, opening new credit accounts causes a temporary blemish on your credit report.
If you only open one new account every few years, the ding probably isn't going to negatively impact your credit.
However, if you're opening new credit accounts every three to six months, you'll set off a red flag to creditors and see your credit score plummet.
Don't use balance transfers as a revolving door to avoid making credit card payments; use them sparingly to ensure your credit doesn't suffer.