The Unseen Dangers of Utilizing Balance Transfer Credit Cards
Friday, 5 April 2024, 10:30
The Role of Balance Transfer Credit Cards
Balance transfer involves moving debt to a new card with lower interest rates, typically for faster debt payoff. The balance transfer fee is usually 3% to 5% of the transferred amount.
Key Risk Factors:
- Balance Transfer Fees: Consider how the fees compare with potential interest savings.
- New Purchases: Be aware that new purchases may not qualify for the promotional APR.
- Credit Limits: Your credit limit may limit the amount you can transfer, affecting your repayment strategy.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.