What to Watch Out For in Credit Card Balance Transfers

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » What to Watch Out For in Credit Card Balance Transfers

What to Watch Out For in Credit Card Balance Transfers

By
Add to Favorites:
The credit card balance transfer service sounds like a good deal: you are able to transfer your funds from your old account to a new one while lowering the interest rate of your debts. But be warned that there are a lot of other things concerning the service that you need to know about other than just the benefits, and it is in your best interest that you keep these things in mind. Here are some of the things you need to look for in the contract, most especially in the fine print portion, so you would not be surprised if these things hinder your finances. Check if there are any balance transfer fees that are included with the service so you would not be surprised if you find your transferred amount missing a few dollars. Usually, these fees are a small percent of the total amount you are transferring instead of a flat rate like $50 per service use. Another thing you have to look for in a balance transfer service is that if there are any caps that would limit on how high the transfer fee could get. If the service does not have any caps then don`t agree to the transfer, or better yet don`t sign up for the offer. You should also take note of the other interest rates of your new credit card, as it might even add up more to your debt amount if you are not careful. Be warned that your new credit card would have rates that are just as high as or even higher than your old ones. This means that if you carelessly make purchases with your new card, then that would add up to your debt. So spendthrifts, be warned about this. There is also the problem with payment allocation, because sometimes your payments might not be allocated the way you assumed to them to be. Check the fine print if your card issuer is likely to allocate the payment you made for purchases to the low or 0% interest balance, in which the amount you paid for buying items and services would be compounded with interest. You should also have to know just how long the low or 0% interest rate grace period would last, as well as how much the interest rate could get high after that period is over. Remember that the grace period would not be there forever, and when that time is up then your card issuers would apply a higher interest rate on your debt if you have any remaining balance on your account. For consumers who are serious in paying off the debts owed, you need to keep this in mind if you want to settle your issues as soon as possible. Be sure to thoroughly search for these items on the balance transfer contract so you know what to expect when you use the credit card balance transfer service. This way, you would be ready to handle these things when you use the service.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How the Fed Rate Rise Impacts Credit Cards

How the Fed Rate Rise Impacts Credit Cards

By Credit-Land, Posted: May 25, 2017

Recently, the Federal Reserve hiked its benchmark rate by a quarter percentage point, as a result, you could see a rise of the interest rates on your credit cards by 0.25%. That was the first hike of the key rate in 2017 and the Fed ... Continue reading
Top 5 Credit Card Offers For Those With Excellent Credit

Top 5 Credit Card Offers For Those With Excellent Credit

By Credit-Land, Posted: May 25, 2017

Do you have excellent credit? If so, banks are actively looking to win you as a new credit card customer by offering some unprecedented deals. Although banks have been more careful about acquiring customers with questionable credit ... Continue reading
Interest Free Credit Cards: Pay No Interest Until 2019

Interest Free Credit Cards: Pay No Interest Until 2019

By Credit-Land, Posted: May 23, 2017

Carrying a balance on a credit card is wasting your money on interest fees. It is easy to avoid interest payments on purchase transactions by paying off the entire card balance by the due date each month. But what to do if you are already ... Continue reading