Are Those Sexy Balance Transfers Still a Good Idea?

Are you sitting on a large amount of credit card debt? Is the interest rate enormously high? If the answer is yes, then you’ve probably thought of transferring your debt to a different credit card with zero interest for a set amount of time.  While the experts have different opinions on transfer introductory rates, most agree it is a good idea for most consumers.

There are some pitfalls that every consumer should be aware of. First, instead of searching for a new card to transfer the balance to, simply call your current credit card issuer and ask for a lower rate. Be sure to let them know that you are thinking of transferring the balance to a different card. Next, be sure not to close your old card once the balance transfer has gone through. Closing credit accounts only hurts your credit score by lowering the amount of credit you have available. Finally, be disciplined with the new card and avoid using it. You simply want to pay the previous debt off.

Source: http://www.cardratings.com/balance-transfer-snafus-that-can-ding-your-credit.html

One comment

  1. Balance Transfer really helped me to save on interest. With $5000 amount transferred, I saved around $740 interest paid in 12 months. Once the 12 months period ended, I will repeat the Balance Transfer process with other credit card.

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