It is not uncommon for someone to sign up for a credit card just so they can get the balance transfer perks. It is actually a good move, if you do it carefully. The problem comes when you do not pay attention to what you may be doing. The following are some mistakes that can be made when dealing with balance transfers. In order to master the process you need to avoid the following...
Watch Out! Things May Backfire
- Know how long the rates last
When you sign up for a card, many times they will have 0% interest on all balance transfers. But this will only last for a limited time. Generally it will last between 6 months to 12 months. So you need to know right away how long it will last and then mark the ending date down. Because you do not want to get caught paying high interest on a balance transfer if you do not have to.
It will be advertised, but that does not mean you have to get it. The company may try to lure you in by offering it, but if you credit score is low you may not get it. So do not assume that you have it and everything will be good. Follow up on the reason you did not get it, if it comes to that. It is a shady move, but there is nothing to stop them from doing it.
You should be doing this anyways. But with balance transfers it is even more important. Companies may take your 0% rate away from you if you miss a payment. So then you are out of luck. You need to make sure you are extra careful with any perks that they may offer you, and use them to your advantage. Do not get careless and forget because that is a good way to find yourself in some troubles.
Remember, You Are the One Who is Affected
Don’t let the company tell you what they think is best for your situation. This balance transfer rate is something that can help you, so make sure it does. You do not want to be stuck with even more fees and payments then you originally planned just because someone tries to get something by you. But you especially do not want something to turn bad because you did not take the time to pay attention. Focus on what is best for you, and everything will turn out fine.
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