Being Cautious About Balance Transfers

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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 » Being Cautious About Balance Transfers

Being Cautious About Balance Transfers

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

Balance Transfers are offered to consumers with a good credit background and a serious credit reputation. So for shopaholics, this is not good for you. You`ll know why.

Balance transfers in the United States seem to have grown quite a while. With the flocking 0%, offered by banks and credit card companies, who wouldn`t be tempted to get t free money? Imagine that. No interest for twelve months? You can shop all you want! That`s just a very catchy part. Later on, after twelve months, you would be seeing a bloated interest charge on your bill. That`s why taking on balance transfers needs a double thought.

Balance transfer is like a gamble. Banks and credit card companies give you a temporary offer that can give you the pleasure of doing anything, such as buying thousand dollars worth of merchandise. Then they will charge you with a big interest later on. This is certainly a pitfall that you should be careful of. Balance transfer is a good tool to get lower interest charges, no doubt about that. But it is a financial game, too. That is why you have to be smart to win the gamble.

You have to know how long the zero or low interest rate is going to last. Determine the real interest behind it. At what rate are you going to be charged after that time? If you foresee that you`ll be paying quite high, try settling a major part of your debt now. Of course, this has to be done within the low-interest period. If you let the debt hanging after the period ends, prepare to be charged with extravagant finance costs.

Balance transfer fees are also financial headaches if you transfer multiple times. They typically account up to 5% but they have a minimum limit up to $50 or slightly higher. So try to make a transfer just once.

Sometimes the low interest is applied only to the amount transferred and not on the new charged amount. So it pays to read the fine print. Know all the terms and conditions that apply. Remember that it`s your money, future and current, we are talking about here.

Those are the basics. If you don`t want to get into this kind of trouble, try staying away from balance transfer products that say they offer zero interest and no balance fee transfer. These usually have hidden terms behind them.

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

Related Research:

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Summer 2018 – Expert’s Choice

Posted: February 12, 2018

The sun shines more and more each day, flowers are in bloom and you already feel how hot it is getting - summer is here. Summer holidays are almost here, and you are in need of dire preparation. You can lift in spirits and let CreditLand ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!