Many times I will receive an application about 0% interest for six-twelve months on a transferred balance. If I have, let’s say $3000.00 of debt on a loan at 10% interest, would it be worth my while to see about getting it transferred to the 0% interest offer? Has anyone ever done this? What would be the benefits to me?
I transfer balances so that I pay less interest while I pay it off. The key is to not run the original card back up otherwise you’re worse off than you started.
What helps to determine if I transfer is what is the interest rate after the intro period is up. What is the transfer fee ( I would never pay more than $75.00)? If the interest rate after the intro period is higher than my original interest rate (before I transferred), can I pay it off before the intro rate expires?
I usually don’t transfer unless the term is 12 months or longer and I know I can pay it off within that year. Currently, all my accounts have been transferred. I have 2 at 0% until April (both will be paid off by then), one is at 0% until November, when it will also be paid off. The others are at 3.9% or 4.9% for the life of the balance. Oh, but one is at 9.9% (came from a 17% card) and I am determined to have that paid off by the end of the year.
A lot of people don’t think it’s a good idea to transfer balances, but if I can pay it off at 3.9% instead of 17%, why not?
I believe there are balance transfer calculators on line somewhere that can help you and show how much interest you would be saving.
So, definitely worth transferring the balance! You will save yourself some $$$. You just have to make sure you do pay the $3000 during this offer of 0%. Most of those offers jack up the rate to 15%+ once the period is over.
Is there anything wrong with constantly transferring a balance to a lower rate until it is paid off?
Before making the transfer, get your paper,pencil and a calculator.
- Check to see if there are any transfer fees. If no, go for it.
- If there are fees, is it MORE than what you would pay in interest on the original card?
It wouldn’t make sense to pay for a transfer fee if the original interest would total out to be less than the fee. I’ve seen people get caught up in this. The ad spinmasters do a good job of smoke and mirrors.
IF you end up paying more in fees, than yes it’s “wrong”…. suppose there are no fees and the interest rate is lower, it’s usually an into.rate which will end. The card companies are counting on you to forget that end date and happily charge along.Vicious cycle.
I am aksing if it is wise to transfer 2 high balance credit card balances to 2 other cards that offer a 0% or just a lower interest than the original cards. Sorry abiout the confusion
No, as long as you keep receiving those great offers. The only catch I could find when I was doing that was the timing. Sometimes, it took a lot longer to make the transfers than I thought. And some companies count that as a payment, some don¹t. So you might find that you have a month where you have to pay the card with the high balance and the card with the transfer. Does that make sense?