Search on the site


Search on the site




7. You may lower your credit score in the short run

7. You may lower your credit score in the short run

6. Not everyone qualifies

Another drawback about balance transfers is that not everyone will qualify for these deals. Banks and credit card issuers usually approve balance transfers only for people with good credit ratings. So unless your FICO score is in the 700 range or better, you might have a tougher time taking advantage of a balance transfer. Another problem for those with average credit profiles: Even if you do get approved, the credit line may not be as large as was initially advertised or as big as you’d hoped.

Applying for a new credit line generates an “inquiry” on your credit report, which usually dings your credit score for a short time. Even if you just shift debt around – as opposed to adding to your debt levels – your credit may still be affected. Because of quirks in the credit scoring system, your credit score may take a hit if you load up all your debt onto one low-rate credit card and max out (or nearly max out) a single card.

The good news is that over time, a credit card balance transfer can give your credit score a boost. This mostly occurs because you have an additional credit line open and more credit at your disposal. And the more available credit you have and are not using, the higher your credit score.

Credit card issuers know they can attract new customers by tempting them with zero percent interest deals for a period of time. While a zero percent offer sounds good, realize that it won’t last forever.

Most of these “teaser” rates last for about six months; some may be as brief as three months. More generous zero percent offers may last for 12 to 18 months. Look carefully before making your decision.

9. Some offers aren’t exactly what you think

The timing associated with a low-interest-rate credit card deal is especially critical if what you’re really being offered is a deferred interest card, as opposed to a zero percent interest card.

“Some card companies have deferred interest cards that may look like zero percent cards but are not,” says GreenPath Debt Solutions counselor David Flores. “Interest accrues on deferred interest cards, but you are not charged the interest if you pay off the balance in full by the zero percent deadline.”

By the end of the promotional period, “if you do not pay off the balance,” Flores adds, “the interest is capitalized onto your remaining balance so, in the end, you end up paying online installment loans MO a high rate on a higher balance than you originally had.”

10. Some balance transfer “deals” are scams in disguise

In recent months, the Federal Trade Commission has shut down at least a half-dozen credit card scams that falsely promised unsuspecting consumers zero percent or low-rate credit card balance transfers. Instead, those consumers got fleeced, authorities say.

In one scheme, a company called National Card Monitor LLC charged people between $499 and $599 in up-front fees in exchange for allegedly securing a lower-rate credit card on the customer’s behalf. National Card Monitor even offered a “100 percent money back guarantee.”

The problem was that the low-rate credit cards touted by the company never materialized. When customers tried to get refunds, they were stonewalled.

The lesson? Avoid paying up-front fees for any product or service. And be sure to read the fine print of any credit card offer before agreeing to the deal.

Lynnette Khalfani-Cox, The Money Coach(R), is a personal finance expert, television and radio personality, and regular contributor to AARP. You can follow her on Twitter and on Facebook.

Article by MargheJump 1 May 2022

Related articles

1 May 2022
Steps to make Yes This woman is the main one
Steps to make Yes This woman is the main one not, note that really what hookup app black girls use in atlanta ga lodging in the city would want a certification away from matrimony just before holding your. That have discretion, you can find suitable urban centers, away from the vision of your social and you may law officers, who act as hotel using your remain. Selecting love having a local lady on the urban area is found on task. Another would be making sure this woman is best individual to own your. This is important so that you don’t ...
1 May 2022
Genau so wie Man Snapchat in Minuten zerhackseln kann, blo? unterdessen zum Vorschein gekommen stoned UrsprungAlpha
Genau so wie Man Snapchat in Minuten zerhackseln kann, blo? unterdessen zum Vorschein gekommen stoned UrsprungAlpha Lasst gegenseitig Snapchat zerhackselnEta Diese Frage ergeben zigeunern heutzutage viele Eltern, bekannterma?en welches richtig unter der App mit DM gelben Vorzeichen passiert, ist gar nicht ausnahmslos jeglicher wahrhaftig. Snapchat wurde heute von via 265 Millionen volk genutzt, unterhalb Gunstgewerblerin immens hohe Anzahl bei Minderjahrigen weiters jungen Leuten.
1 May 2022
Has actually & Benefits of Websites to have Snapchat Nudes
Has actually & Benefits of Websites to have Snapchat Nudes This type of means differ, and sites that address this type of requires are different. Therefore, and locate an informed internet for Snapchat nudes, for the particular demands, question another inquiries: Is it possible you pay? This is basically the very first concern you will need to target. Whenever you are ready to pay, my pointers is to try to just join a made Snapchat membership for personal nudes. Today, that does not mean do not browse the free web sites so you’re able to get a hold of what ...

Download the Eurogames's catalogue

To download the catalogue, please fill in the form and you will receive the link to the catalogue immediately!

Download the Eurogames's catalogue

Chat with us
Click on one of the team members below and start chatting