But you'll need to be careful, because once that introductory period ends, the interest rate on your balance transfer card could skyrocket. That means for a period of time, you won't accrue interest on the balance you're paying off. You could get stuck with an expensive interest rate once your introductory period endsĪs mentioned earlier, some balance transfer offers come with a 0% introductory APR. And that could cause even more credit score damage. But if you're doing a balance transfer in conjunction with applying for other loans, you might get stuck with several hard inquiries back to back. A single hard inquiry might only drag your credit score down a few points. Your credit score could take a hitĪpplying for a balance transfer offer means having a hard inquiry performed on your credit report. For a $5,000 balance, you could get stuck paying up to $250. Balance transfer fees usually amount to 3% to 5% of the sum you're moving over. And that's an additional cost you may not want to bear at a time when you're already dealing with debt. Most credit cards charge a fee to move a balance over. And so before you rush to do a balance transfer, consider these three reasons why you might end up regretting that decision down the line. More: Consolidate debt with one of these top-rated balance transfer credit cardsīut balance transfers aren't always the perfect solution to managing credit card debt. Discover: This card has one of the longest intro 0% interest periods around
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