Although balance transfers “ transferring your card balance to a lower interest credit card “ might seem like an ideal way to save on interest, there can be some drawbacks. Click here for things you should consider before making the move.
1. Transfer Fees. Be sure the interest you will be saving outweighs the transfer fees you will be charged by your existing card company.
2. Rate Hikes. Beware that the low introductory rate can be hiked up at any time “ and trust us, that increase won’t be accompanied by a courtesy call. If this does happens, it could end up costing you more than the interest on your original card.
3. Your Score. Depending on your credit history, a balance transfer may appear to credit agencies like you’re close to maxing out a credit card, and this could negatively impact your credit score.
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