Ways you could land in trouble with balance transfers


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 » Ways you could land in trouble with balance transfers

Ways you could land in trouble with balance transfers

The content is accurate at the time of publication and is subject to change.
If you have a credit card debt of $5000, you might end up paying quite a stiff amount of money in terms of interests every month or even every year. Part of the reason why you are unable to pay off the debts is that you can only cater so much towards the debt every month because of other expenditures. You would then wish, there was no interest for a few months, so that you could quickly pay off the debt you have and return to normal. The gods have heard your plea and you have many credit cards offering you balance transfers for 0% interest rate. But wait, are you really sure you want to go ahead with this balance transfer? It is one of the most tempting decisions one can ever make with respect to a credit card and is exactly the reason why one should avoid it in most cases. Credit card companies are not out there to do charity and at most times in balance transfers it is the customer and the credit card trying to outfox each other. The offer the credit card company makes is a balance transfer with 0% interest rate up to 12 months. As soon as you get your card mailed, find out what the interest rate is for you and how long would that stay? Most often your credit history could be the excuse, credit card companies would use to reduce the intro term period to less than what it was promised. Another common mistake that people do with balance transfers is to not check the intro term percentage terms. Good credit card companies which are honest offer this 0% interest on both balance transfers and all other purchases too. At the worst the intro term would be different for balance transfers and for other purchases. Assuming the term period and the categories would be a grave mistake one can do. If one is not getting the intro term for other purchases, it is not a risk worth taking. Also, if you are transferring your balance for the sake of getting rid of your interest for some time you must remember that and not shop extravagantly. For all you know, the regular interest rate might be too high for you to take the risk of not completely paying off the debt. So make the balance transfer only if you are sure the debt will be cleared during the intro term period. A common mistake made by people is to ignore other terms and conditions. If you are going to use the credit card, you are going to attach quite a few months of credit history to it. If you are good with the payments, your credit score will go up to. So you would want to take a card which offers other incentives like cash back, rewards, offers and benefits along with a reasonable interest rate apart from the balance transfer, so that you can continue using the card even afterwards.

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!