Is there anything you should be careful about in... - Balance Transfers Questions


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Credit Card Applications » Questions » User Questions » Balance Transfers » Is there anything you should be careful about in balance transfers?

Is there anything you should be careful about in balance transfers?

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There is a lot of available information about balance transfer credit cards that you should be careful about. Balance transfer by definition, is when you use one credit card to pay off another. The incentive for doing this would be the 0% offer that is provided for a few months, during which, no interest would be charged. This will offer your temporary relief from the accumulating interests. However, there are a few things you need to worry about when it comes to 0% balance transfers to ensure that you are good before the actual transaction takes place.

Make sure you check the fine print. The promotional period for 0% APR on balance transfers could vary and if your credit score is low, you might not get the entire promised period, thus upsetting all your calculations. You must also check if there is a balance transfer fee. If there is a fee in excess of 4% you might want to revisit your calculations as the fee would eat into your interest savings. Similarly, you will have to check if the balance transfer credit card has an annual fees and if so, how much. That too would have to be deducted from your savings. The final saving is what should make you decide whether you want to go for the balance transfer or not.

Some balance transfer credit cards offer 0% APR only on the balances and not on purchases. You should check what your card offers. If the 0% is available on expenses too, then it is a better deal. Some balance transfer deals require you to pay part of the balance in advance, in order to avail the 0% APR. The credit limit is another parameter you should check on a balance transfer card. If the credit limit is lower than the previous card, you cannot close the previous card as it would reduce the overall credit available to you and therefore your credit score. The hidden charges and the APR after the promotional period should also be comfortable enough for you to use the credit card. All in all, there isn`t any point of going for a balance transfer thereby, risking your credit score, if there aren`t substantial benefits and if you cannot use the card after the introductory period.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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Intro APR on Balance Transfer: 0% (18 months)

Ongoing APR on Balance Transfer: See terms

Excellent, Good Credit

Intro APR on Balance Transfer: 0%* 21 months on Balance Transfers*

Ongoing APR on Balance Transfer: 14.74% - 24.74%* (Variable)

Excellent, Good Credit

Intro APR on Balance Transfer: 0% 18 months on Balance Transfers*

Ongoing APR on Balance Transfer: 15.24% - 25.24%* (Variable)

Excellent, Good Credit

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