4/15/2023 0 Comments Balance transfer credit cardsWhile most offers for credit card balance transfers are legitimate, some balance transfer "deals" are actually financial scams. Some balance transfer "deals" are scams in disguise "Interest accrues on deferred interest cards, but you are not charged the interest if you pay off the balance in full by the zero percent deadline."īy the end of the promotional period, "if you do not pay off the balance," Flores adds, "the interest is capitalized onto your remaining balance so, in the end, you end up paying a high rate on a higher balance than you originally had." 10. "Some card companies have deferred interest cards that may look like zero percent cards but are not," says GreenPath Debt Solutions counselor David Flores. The timing associated with a low-interest-rate credit card deal is especially critical if what you're really being offered is a deferred interest card, as opposed to a zero percent interest card. Some offers aren't exactly what you think Look carefully before making your decision. More generous zero percent offers may last for 12 to 18 months. Most of these "teaser" rates last for about six months some may be as brief as three months. While a zero percent offer sounds good, realize that it won't last forever. Another problem for those with average credit profiles: Even if you do get approved, the credit line may not be as large as was initially advertised or as big as you'd hoped.Ĭredit card issuers know they can attract new customers by tempting them with zero percent interest deals for a period of time. So unless your FICO score is in the 700 range or better, you might have a tougher time taking advantage of a balance transfer. Banks and credit card issuers usually approve balance transfers only for people with good credit ratings. Not everyone qualifiesĪnother drawback about balance transfers is that not everyone will qualify for these deals. features a balance transfer calculator that allows you to see what the costs are. You might want to crunch the numbers first. "Even if you have the cash to do so, it might or might not be worth it, depending on how much money you'll save on interest over the life of your debt." "A typical fee in 2013 is 3 percent, so if you transfer a $10,000 debt from another card, you'll pay a $300 fee right away," says Ben Woolsey, director of marketing and consumer research for. On most balance transfer cards, there is no cap, meaning that the more you transfer, the bigger the fee. Fees can range from 2 percent to 5 percent. Most of the time, you will have to pay a fee based on the amount of the credit card balance you transfer. Unfortunately, credit card balance transfer offers aren't typically free. This way, you only have to worry about paperwork and payments for a single account. Instead of making multiple payments to several credit card companies, it may be easier to combine or consolidate your debts onto one card. You can simplify your financesĪnother selling point of balance transfer offers is that they provide a way for you to streamline and simplify your finances. If you have a plain-vanilla credit card with no perks attached, finding a balance transfer deal that also offers perks is worth considering.įree websites such as allow you to search for cards in multiple categories, including cards that offer cash back low introductory rates balance transfers gas rewards credit card deals miles and points. One advantage of doing a credit card balance transfer is that you can apply for a credit card that rewards your spending or gives you perks for shopping that you were going to do anyway.įor example, travel cards, rewards cards and airline cards all frequently offer hotel discounts, cash-back awards or free flights.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |