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.
