Credit card balance transfers are very common. We usually think we are getting a good deal if we are offered a zero percent APR balance transfer. This is a great offer. However, too often we fail to think about the long term effects of a credit card balance transfer.
For example, can you avoid incurring new charges on the old card? For many people this is a difficult task. Additionally, what do you plan to do with the old card? It is recommended that you keep the account open. This helps build up your FICO score.
Other important factors to consider are whether you will get approved for the new card. Applying is the easy part. However, the challenge is getting the approval in the first place. Lastly, be sure to consider fees that will be incurred as a result of the balance transfer. Most if not all major credit card companies charge fees for balance transfers.
For more useful information on credit cards and balance transfers, visit the bankrate.com website and search on credit cards.