Follow These Guidelines If You Intend to Transfer Your Credit Card Balance

If your debt is too large, you might consider transferring your credit card balance to another card . If the card has a low interest rate (or better yet, zero interest), you can deposit more of the principal and pay off your debts faster. However, this is not an easy step. Here are some balance transfer rules to follow.

Credit cards often offer balance transfer promotions. They recommend that you transfer your balances for free, offering a starting annual rate of 0% for 6-12 months (sometimes longer). It goes without saying that you want to read the fine print and make sure the card is not charged a balance transfer fee. It’s worth it in some cases, but it can also offset your savings. explains how this process generally works:

In theory, clients transfer their balances from the interest card to a new one, and then work on paying off the debt before the promotion expires (and the new one takes effect). Of course, not everyone is a pro, and if you’re not careful, you could ruin your credit and still get stuck in debt.

They set out a few rules to follow so that you can get the most out of your transfer without ruining your credit:

Redeem your card before the end of the promotion : The point of the balance transfer is to pay off your debt before the promotion period ends and you are saddled with a crazy high interest rate. After you schedule your balance transfer, you will want to work your best to pay off that balance before the promotion ends.

Do not put more on the card : Likewise, if you add more to your balance, you may have problems paying it out before the end of the promotion period, and you will return to the same place. Worse, you might lower your credit score, making it difficult to sign up for another card to re-transfer that balance.

Read the fine print : Obviously, you want to know what you are getting yourself into, and read the fine print carefully. For some cards with a balance transfer, the promo-rate is terminated when the payment is delayed. As explains, your new rate can be as high as 30%. Of course, you also want to know what your card’s annual percentage rate will be at the end of the promotional period.

Be sure to check out’s full posting below. They include a few more rules and factors to consider if you are going to go this route.

Golden Rules of Credit Card with Balance Transfer |


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