x
Breaking News
More () »

Should I transfer my credit card balance?

You get plenty of offers to do so, but when is it worth it?

Credit card offer, credit card offer, credit card offer. You get so many, you probably ignore them. I mean, you don't want to get more in debt...right?

But if you have a balance on a card and there's a 0% offer, should you take it?

ConsumerAffairs.com took a look at credit card balance transfers and found a study from CompareCards. In it, 41% of consumers had applied for a balance transfer card in the past. But 40% failed to pay off the entire balance during the 0% introductory rate period. That can get you in a bigger money mess.

The first take-away is: Is the introductory rate period enough time for you to realistically pay off the balance?

The next point main: Knowing the balance transfer fee. Most cards charge at least 3% of the transferred balance. If you have $10,000 to transfer, you're looking at an upfront fee of $300. Is that less than the amount of interest you would pay in the same amount of time of the introductory period?

Creditcards.com has a balance transfer calculator to figure out it the fee is worth you transferring the money. Will you save on interest is the bottom line. 

ConsumerAffairs.com recommends three cards--  an AMEX, a CITI card and a CHASE card. The details of these cards are in the linked article. 

RELATED: HOW TO KNOW IF YOU SHOULD REFINANCE YOUR MORTGAGE.

Before You Leave, Check This Out