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What is the advantage of balance transfer?
The major benefit of a credit card balance transfer is that it offers you the opportunity to save big bucks. Balance transfers featuring zero percent offers are especially nice, but even a low-rate balance transfer can save you money if your current credit card interest rates are moderate or high.
Are too many balance transfers bad?
Transferring a balance multiple times makes sense if you’re aggressively paying off what you owe and won’t have time to become debt-free before the first 0% intro APR expires. Continuing to move debt from one balance transfer card to another could become costly if you pay balance transfer fees each time.
What are the advantages and disadvantages of a balance transfer?
Advantages and Disadvantages of Balance Transfers
- Lower Interest Rates. One of the biggest advantages of credit card balance transfers is lower interest rates.
- Convenience. Balance transfers can make your life easier, especially if you consolidate several card balances into one.
- Fees.
- Fine Print.
Will a balance transfer close my account?
No, a balance transfer does not cancel a credit card. You are not required to close the account once a balance transfer is complete, either. It may actually be a good idea to keep your old credit card account open, even if you don’t plan on using it.
Does a balance transfer offer a good deal?
A credit card balance transfer with a 0% annual percentage rate (APR) seems like a great deal: Pay 0% APR on transferred balances for up to 21 months. These offers can, in fact, be tremendous money-saving tools if used wisely. Understanding what’s in it for the bank and credit card company before signing up, however, can help avoid costly mistakes.
What credit cards offer no balance transfers?
The most popular credit card with no balance transfer fee is Chase Slate®, which offers a $0 balance transfer fee for 60 days, gives you 0% APR on purchases and balance transfers for 15 months, and doesn’t charge an annual fee. Slate has some strong competition, though.
Are balance transfers the best way to pay off debt?
While a balance transfer can be excellent for those struggling to pay off debt because of a high-interest rate, the goal is to use your low interest to pay off your balance immediately. If you are just transferring your balance from card to card, getting a new one won’t fix your debt problem. You could end up adding to them even more because of fees, and the post-introductory high-interest rates.
Does a balance transfer hurt your credit score?
A balance transfer may lead to your scores dipping in the short term. That’s because you’ll decrease your average account age and increase the credit utilization on a single card. But when you use credit responsibly over time, your credit should rise again.