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How the average person can save money quickly and easily

6 Expensive Credit Card Balance Transfer Mistakes

Start Making Smarter Credit Card  Balance Transfer Moves

credit card balance transfer mistakes

credit card balance transfer mistakes

Using a balance transfer to lower your interest rates and fees can be a great way to cut your credit card expenses if you do it correctly. Unfortunately there are many credit card balance transfer mistakes that can greatly increase your credit card bills.

Some of these mistakes are very easy to make because most people are not aware of them. Here are a few actions you must avoid when you decide to transfer your  credit card balance, avoiding them can give you all the benefits of a lower interest credit card:

Top Credit Card Balance Transfer Mistakes

Missing a payment –  Most of the 0% interest offers out there will automatically end if a payment is missed. These days, a payment can be considered missed if it is one day late. This can be avoided by taking advantage of an automatic bill pay or using an electronic bill pay feature. The best way to avoid missed payments is to stop using paper checks which can be lost or delayed in the mail.

Failing to do the your sums – There are a number of credit card balance transfer calculators out there that can tell you what it really cost to pay the debt off with the new card. These calculators can show you if the offer with the card is real or not. Some of the offers come with hidden fees that can add up to an amount higher than the interest savings.

Not knowing how long the introductory period lasts –  Most of the 0% interest and other balance transfer offers only last for a specific period of time. The length of time can help you determine how much you really save. For example a 5% interest rate that lasts for a year might save you more than a 0% offer that lasts for just three months. A good rule of thumb is the lower the interest rate the shorter the introductory period.

Making too many balance transfers – Many people don’t realize this but balance transfers can drive down your credit score. Making more than one balance transfer a year is likely to affect your credit score. A good rule of thumb is to make that it has been at least 12 months since your last transfer when you move a balance.

Not asking your current credit card company to match the offer – The competition for credit card customers is intense. Many credit card companies will match offers to keep a good customer. Before making a balance transfer contact your current company directly and tell them about the offer. You might be able to get the same benefits without having a balance transfer on your record, this is probably the easiest credit card balance transfer mistakes you can make.

credit card balance transfer mistakes

credit card balance transfer mistakes

Not closing out your old credit card account – Even if you are not using it a credit card account can affect your credit card balance. A few missed payments on an old account you forgot about could seriously damage your credit score. If you don’t want to keep a credit card account make sure it is actually closed, so simple but one of the nasty credit card balance transfer mistakes we can all easily make

 Not having a debt repayment plan – Debt will still eat into your future income no matter what interest rate you are paying. If you want more money in the future you will need a plan to pay it off. In many cases a good debt repayment plan will save you more money than a balance transfer because it could reduce or eliminate the debt entirely.


A balance transfer can be a valuable tool for reducing your credit card payment if you use it properly. If you use it in the wrong way you could end up paying more rather than cutting your bill.



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