This in turn can help boost your credit score.
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But abalance transfer cardisn’t right for everyone.
There is a catch, though:balance transfer fees.
What kinds of debt can be transferred to a balance transfer credit card?
You shouldn’t transfer fixed-rate debt, like personal or student loans, lightly though.
To do so, divide the amount of the balance by the number of months in the promotional period.
These introductory periods often last about 12 months – though some go up to 21 months.
The introductory interest rate is important, but it’s not the only factor to consider.
Next, compare balance transfer fees.
Most companies charge between 3% and 5% of the balance you transfer.
Finally, understand the credit requirements before applying.
If you meet all the requirements, you’ll likely be approved.
Once approved, it’s possible for you to initiate the balance transfer.
This can be done online, by check or by phone.
Once the transfer occurs, it will appear as a payment on the credit card you’re paying down.
If you’ve transferred the entire balance, the balance on your statement should drop to zero.
This will give you an approximate target payment for each month.
We recommend paying more than this amount, when possible, just in case.
It’s crucial topay down the balancebefore the introductory period ends and the higher interest rate kicks in.
While those fees might feel painful at the time, keep in mind how quickly interest charges can accumulate.
What happens if I still have a balance after the introductory APR period expires?
But, if you’re worried about the new interest rate, you have some options.
And, if you are approved, you’ll also have to pay another balance transfer fee.
Can I use a balance transfer card to make purchases?
But you shouldn’t.
So, you could be on the hook for 13.99% APR on new purchases, for example.
Is a balance transfer a good idea?
But a balance transfer can easily go sideways.
You should also steer clear of balance transfer cards if credit cards easily tempt you.
Additionally, you may not get approved for a balance transfer card if you havepoor credit.
The best balance transfer deals are generally only available to those with good credit.
Otherwise, you initiate the risk of paying too much in transfer fees and interest down the line.
Alternatives to balance transfers
A balance transfer is one of many options to pay down high-interest debt.
Here are six alternatives to consider if you’re not interested in a balance transfer credit card.
Just keep in mind the home equity options are higher risk than utilizing a balance transfer card.
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