The pros of balance transfers include saving money on interest, consolidating debt, and possible improvement in credit score in the long run. The cons of balance transfers include balance transfer fees, high regular APRs, and above-average score requirements. Generally, when you transfer a balance, you’re shifting high-interest debt to a credit card with a lower interest rate.… read full answer Pros and Cons of Balance Transfers
Balance Transfer Pros Save money on interest. So, if you transfer your balance from a high-interest credit card to a card with a low introductory APR on balance transfers, you will have the opportunity to save on interest charges. To make the most of your balance transfer card, make sure to pay down as much of your balance as you can during the intro period. Keep in mind that the remaining balance will be subject to the card’s regular APR. Consolidate debt. Possible credit-score improvement in the long run. Better features and perks. Balance Transfer Cons Balance transfer fees. High regular APR. Above-average
score requirements. The risk of building
more debt. Possible drop in credit score for a short period of time. Ultimately, if you consider all the pros and cons and decide a balance transfer is right for you, the next step is choosing a balance transfer card. There are many cards on the market, but some are better than others. It’s important to do your research and choose the card that best suits your financial needs. Best Balance Transfer Credit Cards in 2022
Alternatives to Balance Transfer Credit Cards If you’re not convinced that getting a balance transfer card is the right call, there are other ways to pay down your debt. For instance, using a debt consolidation loan might be a better fit if you qualify for a competitive interest rate and a large enough loan. Factors such as your credit score, income, and existing debt play a significant role in determining your interest rate and loan amount. show less Does a balance transfer to an existing card affect credit score?A balance transfer can affect your credit score, depending on 1) if you open a new card to transfer a balance and 2) what you do once your balances have been transferred. If you simply move your balances around on your existing cards, your credit score likely won't be impacted.
Can I transfer a credit card balance to a card I already have?Credit card balance transfers are typically used by consumers who want to save money by moving high-interest credit card debt to another credit card with a lower interest rate. Balance transfer credit card offers typically come with an interest-free introductory period of six to 18 months, though some are longer.
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