The content is accurate at the time of publication and is subject to change.

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.

tags :