There are many ways to use a balance transfer credit card to your advantage. For example, if you have debt spread across several credit cards, it’s a great way to save money and better organize your finances.

Despite the many benefits, you don’t want to proceed with a balance transfer until you’re 100 percent sure of what you’re doing. There are balance transfer mistakes lurking, all of which could cost you time and money.

Here are three of the most common balance transfer mistakes:

  • Neglecting to consolidate all your credit card debt: You don’t have to do this, but you should have a good reason if you neglect against it. When you consolidate all your debt, you’re able to maximize your savings. Also, this allows you to bring your debt under the same roof, thus giving you a clear idea of where things stand at all times.
  • Forgetting about the balance transfer fee: Using a balance transfer credit card is not as easy as it sounds. Before you can take full advantage, you’ll need to pay a balance transfer fee that’s typically equal to three to five percent of the amount transferred. Compare the fee to the cost savings for a clear idea of whether it makes sense to proceed.
  • Choosing “just any” balance transfer credit card: It’s easy to believe every balance transfer offer is the same, but this isn’t the case. Just the same as traditional credit cards, there are details that differ from offer to offer. From the balance transfer fee to the length of the introductory rate, you need to know what you’re getting.

Final note: if you’re going to use a balance transfer credit card, don’t hesitate to take full advantage. You have the opportunity to pay down (or eliminate) your balance during a period of zero percent interest. Do your best to make it happen.

If you avoid these balance transfer credit card mistakes, you’re much more likely to enjoy the process and find yourself in a better place when everything is said and done.

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