Is it bad to keep transferring credit card balances to 0% APR cards?
Every time the APR on my credit card kicks in, I search for a new credit card with 0% APR and try to transfer the balances. Then I cancel the card that I just had the balance on. Is that bad to do? It seems to help whittle down the total when I’m not paying any interest.
May 10th, 2010 at 5:24 pm
Transferring credit cards on a regular basis has a slightly negative impact on your credit score. But it’s only short-term. If you aren’t taking out a mortgage (or other BIG loan) soon… I wouldn’t worry about it too much. Here’s a great place to compare 0% credit card deals:
http://www.asapcreditcard.com/0-apr.html
Unfortunately, it will be almost impossible to find a 0% credit card without a ‘balance transfer fee’. The credit card companies have caught on to tactics like yours and are trying to limit their losses. But depending on your balance– you can still save a ton of money using these offers.
Since you probably won’t find a card without a ‘balance transfer fee’, look for offers with a CAP or LIMIT on the charge. For example, the Discover More and Chase Platinum cards both have a $75 limit on their ‘balance transfer fee’. This will help you save the most.
Hope this helps. GOOD LUCK!
May 11th, 2010 at 12:04 am
It can be. Some cards have 0% BUT they charge a large transfer fee. So you would still pay.
There may also be an impact on your credit rating.
And another issue – if you suddenly lose your income, how do you pay the minimum payments ?