Even though the benefits of a balance transfer far outweigh any potential drawbacks, you should still have a solid understanding of what could go wrong. This knowledge will allow you to avoid trouble, thus getting exactly what you want from the process.
Here are four things that could go wrong with a balance transfer credit card:
- You don’t qualify: This is based on a variety of factors, such as your credit score, credit history, and amount of debt you want to transfer. Learn more about the eligibility requirements before applying, as you don’t want to chase after an offer you won’t qualify for.
- The wrong offer: Don’t assume that all balance transfer credit cards are the same. A quick comparison will show you that there are many key differences, ranging from the balance transfer fee to the length of the introductory rate.
- You’re not really saving: A balance transfer sounds like a great idea, but this is only the case if you’re actually saving money. Compare the balance transfer fee against what you’d pay in interest if you do nothing. Unless you’re making out on the deal, it’s best to stick with your current pay off strategy.
- Another credit card for spending: There’s a good chance you’re considering a balance transfer credit card because you’ve overspent in the past. With access to another card, there’s always the possibility that you’ll go down this path again. Unless you trust yourself to do the right thing, it’s best to stay away from another credit card.
Don’t let these potential pitfalls stop you from applying for a balance transfer credit card. Instead, use the information to ensure yourself of securing the right card for you, your finances, and your money-related goals.
Once you have the right balance transfer credit card in your sights, move forward with the application process and get ready to take advantage of a variety of benefits.