If it seems Too Good to be True… It Probably Is

Usually a credit card issuer will apply a balance transfer fee when you transfer a balance from one card to another under their ‘Special Offers.’ Beware, these fees are often a percentage of the total balance or come with other conditions such as eligibility requirements, no grace period, conditional based on monthly payments, etc. Be certain to read the fine print and understand the terms before falling for one of their many marketing ploys.

Once you fully understand the terms, make sure you factor in any fees to the interest rate in order to accurately compare APRs.

If you violate any of the conditions, they may just jack your rate up to an amount higher than then the card you transferred from.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s