Transferring a Credit Card Balance
Transferring your high-interest credit card balance to a new card with a low or 0% interest rate is an option to consider if you have a plan in place to pay off the balance before the promotional period expires.
Consider consolidating most or all of your credit card debt onto the new card. Even if you can't pay the entire balance off in 6 or 9 months, this will give you some additional time to work out a strategy on how to become debt-free. You might also be able to transfer your car loan and/or other installment payments to the new card.
Look for low transfer fees. You will almost always have to pay a fee to transfer your balance, and that fee might negate what you would save in interest. To find out whether you will save money, net of that fee, use a balance transfer calculator, such as this one: http://www.creditcards.com/calculators/balance-transfer.php
Be sure the introductory rate covers new purchases. If it doesn't, do not use that card to buy anything!
The strategy of moving your debt from one 0% interest card to another 0% interest card can be risky. You may eventually find that you damaged your credit rating so severely that you won't be able to get a new card. Certainly it will make it harder to get financing for a new home or other major purchase.
Consider transferring your debt to a credit card that does charge interest--but at a low fixed rate. This is the best strategy if you can't pay off your whole balance within the promotional period.
Consider consolidating most or all of your credit card debt onto the new card. Even if you can't pay the entire balance off in 6 or 9 months, this will give you some additional time to work out a strategy on how to become debt-free. You might also be able to transfer your car loan and/or other installment payments to the new card.
Look for low transfer fees. You will almost always have to pay a fee to transfer your balance, and that fee might negate what you would save in interest. To find out whether you will save money, net of that fee, use a balance transfer calculator, such as this one: http://www.creditcards.com/calculators/balance-transfer.php
Be sure the introductory rate covers new purchases. If it doesn't, do not use that card to buy anything!
The strategy of moving your debt from one 0% interest card to another 0% interest card can be risky. You may eventually find that you damaged your credit rating so severely that you won't be able to get a new card. Certainly it will make it harder to get financing for a new home or other major purchase.
Consider transferring your debt to a credit card that does charge interest--but at a low fixed rate. This is the best strategy if you can't pay off your whole balance within the promotional period.
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