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8 Do’s and don’ts of credit card balance transfer
Balance transfer is one of the ways in which you can pay down your credit card debt easily. You can transfer the balance from high interest credit cards to a card offering 0% introductory rate. Such cards don’t charge any interest in the introductory period. Thus, the monthly payment gets lowered. Moreover, instead of making several payments towards different cards, one can make a single monthly payment. However, while trying to consolidate debt through a balance transfer, you need to check the do’s and don’ts of balance transfer.
Do’s and don’ts of balance transfer
Before you can sign up for a 0% balance transfer card, you should know the do’s and don’ts of balance transfer. They are:
The do’s
1. Compare offers – Before signing up for a particular 0% balance transfer card, you need to compare different offers. The terms and conditions vary according to the companies. Some credit card companies may offer a longer 0% introductory rate period. The transfer fees, and interest rate after the 0% period will also vary. Thus, it is wise to shop around for such offers.
2. Check credit score – Before applying for a balance transfer, it is better to check your credit score. If you have a low credit score, your application for the 0% balance transfer card may get rejected.
