No credit score impact: balance transfers to one or more existing cards. Perhaps you have several credit cards open and are carrying a large balance on one of your cards with a high interest rate. If you move this balance to one or more of your other cards with a lower interest rate, your credit score won't be affected
What's the catch with balance transfers?
But there's a catch: If you transfer a balance and are still carrying a balance when the 0% intro APR period ends, you will have to start paying interest on the remaining balance. If you want to avoid this, make a plan to pay off your credit card balance during the no-interest intro period.
Is 3% balance transfer fee worth it?
Do the math on balance transfer fees: Paying a balance transfer fee is generally worth it, as fees cost 3 percent or 5 percent of your balance at most.
What are some of the concerns with balance transfers?
- You pay for something with your card. Balance transfer risk No.
- You forget to make a payment. Balance transfer risk No.
- You pay less than the minimum. Balance transfer risk No.
- Your check doesn't clear. Balance transfer risk No.
- You don't qualify for the promotional 0% interest rate.
Is it worth it to transfer a balance?
But in general, a balance transfer is the most valuable choice if you need months to pay off high-interest debt and have good enough credit to qualify for a card with a 0% introductory APR on balance transfers. Such a card could save you plenty on interest, giving you an edge when paying off your balances.