Balance Transfers - Will You Really Save Money?
Balance Transfers – Will You Really Save Money?
Each year millions of credit card users transfer their balances to a new credit card in an attempt to save money. Offers of super-low introductory rates make it very tempting to transfer your old credit card balances to the new card, thinking it will save you hundreds or thousands of dollars in interest. Read the fine print carefully, otherwise you may wind up paying a much higher interest rate in the long run and encounter hidden fees.
You will need to ask questions before transferring your balance to a new credit card. Some important issues to consider are: how long the introductory rate lasts and what the interest rate will be after the introductory period, will the introductory rate apply to both balance transfers and new purchases, is there an annual fee, and if there are separate balance transfer fees.
When you receive credit cards offers make certain to read the entire offer several times. Keep in mind that not everyone who applies will automatically get the super-low rate and if you do qualify for the low rate, you could be penalized for making one late payment or one incident of exceeding your credit limit and lose your low introductory rate. It is certainly possible to transfer your balances and save money in fees and charges, just read all offers carefully to make a balance transfer won't end up costing you more money in the long run.
Each year millions of credit card users transfer their balances to a new credit card in an attempt to save money. Offers of super-low introductory rates make it very tempting to transfer your old credit card balances to the new card, thinking it will save you hundreds or thousands of dollars in interest. Read the fine print carefully, otherwise you may wind up paying a much higher interest rate in the long run and encounter hidden fees.
You will need to ask questions before transferring your balance to a new credit card. Some important issues to consider are: how long the introductory rate lasts and what the interest rate will be after the introductory period, will the introductory rate apply to both balance transfers and new purchases, is there an annual fee, and if there are separate balance transfer fees.
When you receive credit cards offers make certain to read the entire offer several times. Keep in mind that not everyone who applies will automatically get the super-low rate and if you do qualify for the low rate, you could be penalized for making one late payment or one incident of exceeding your credit limit and lose your low introductory rate. It is certainly possible to transfer your balances and save money in fees and charges, just read all offers carefully to make a balance transfer won't end up costing you more money in the long run.
