Credit Cards

Mistakes People Make With Credit Card Balance Transfers

There are 2 big mistakes people make when doing a balance transfer:

1 – They don’t leave the old card open. Just because you moved the balance to a new card doesn’t mean you close the old card. You want to keep that card open so it helps to reduce your credit utilization – which is the amount you have borrowed compared to your credit limit.

2 – Another mistake people make is forgetting about the balance transfer fee. Just because you move your balance to a card that has no interest doesn’t mean it’s free. Most cards have a balance transfer fee which is about 3% of the amount transferred.

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