Transfering Balances Between Credit Cards
3 Oct
Those who are unhappy with their current card may be toying with the idea of switching cards, which usually means transferring balances from one card to another. This is a great way to find a better card that offers a lower interest rate and whatever else the person finds important. However, transferring balances can also lead to a huge headache, not to mention a huge dent in the wallet.
There are a few questions for anyone interested in getting a new credit card should ask. First, how long does the introductory rate last? Many companies make the offer out to be a low interest rate forever, though that is rarely the case. Secondly, when the introductory rate ends, what is the interest rate then? Many people have found that sticking with their old card is just as good after this rate has been discussed. Third of all, does the introductory rate apply to the balances that are transferred from other credit cards? The person should also ask about late fees, annual fees and over-the-limit fees before they decide that switching to a new card is the best choice.
One of the things to look at for when deciding a new card is the route to go and when transferring balances from one card to the next is the transfer few. Most new credit cards will say that no transfer fee is involved. However, in the fine print this rule only applies to the first initial transfer fee. If you are transferring two cards to one, then one card may get a fee and be treated as a cash advance. This may mean an extra four percent interest on the amount. Which means that a low nine percent rate, just became a thirteen percent rate. If this is the route that person chooses, it is vital that you keep paying on the old credit card before the transfer occurs. This type of information is still reported to the credit agencies, thus it could have a negative affect on the credit score.
Above all else, when looking through new credit card offers, read everything. This cannot be stressed enough. Many people are upset to find that once the balances have been transferred that they are paying just as much, if not more than the previous card due to transfer fees. The fine print on the back of these credit card offers usually contain the vital information that consumers skip over. Also, remember that if something does not make sense, call and ask someone about it.
