Category: Balance Transfer Advice

It’s that time again, where I compare balance transfers to other financial instruments to see which is best in particular situations. Today’s matchup: “balance transfer vs. personal loan.” Balance Transfers In short, a balance transfer allows you to shift high-APR debt from one credit card to another (what is a balance transfer?). Sometimes, you’re also… Continue reading Balance Transfer vs. Personal Loan

While this may sound like an obvious mistake, I wanted to clear something up for others new to the balance transfer game. A reader noted that they received a “zero percent balance transfer fee credit card” from a credit card issuer. They added that it offered 0% APR for 12 months. This is a bit… Continue reading 0% Balance Transfer Isn’t Necessarily No Fee

If you already know what a credit card balance transfer is, you may be wondering why credit card issuers choose to offer them. In short, a balance transfer allows a consumer to move a credit card balance from one credit card to another in the hopes of saving some money. Credit card companies typically lure… Continue reading Why Do Credit Card Issuers Offer Balance Transfers?

Balance transfer Q&A: “Should I do a balance transfer?” If you’re currently paying credit card finance charges each month, a balance transfer is probably a good idea. While it’s not uncommon to pay interest on your credit card balance(s), it’s not a healthy habit. Millions of Americans are essentially throwing money down the drain because… Continue reading Should I Do a Balance Transfer?

I’ve already spoken about the benefits of balance transfers in depth, along with the problems and pitfalls. But one thing I forgot to mention was the default rate on balance transfer credit cards. By default rate, I mean the interest rate your credit card will adjust to if you fail to make an on-time payment,… Continue reading Watch Out for the Default Rate on Balance Transfer Credit Cards

How Much Are You Required to Pay Each Month? One downside to a credit card balance transfer is that the minimum payment may be higher than that on a standard credit card balance tied to purchases. For example, Discover calculates minimum payments on purchase balances by asking that you pay 2% or $40, whichever is… Continue reading Balance Transfer Minimum Payment

Balance transfer Q&A: “Does a balance transfer count as a payment?” A credit card balance transfer works just like a normal credit card payment, except it’s made by a third-party, namely, another credit card issuer, instead of by you. The third-party essentially agrees (with your consent) to pay off your existing debt with one or… Continue reading Does a Balance Transfer Count as a Payment?