If you are transferring a balance onto a credit card with an existing balance, think twice. As a rule, NEVER transfer a balance onto a card with an existing balance. Potentially Harmful to Credit Rating. Unless you are transferring balances more than once a year, doing so will have little impact on your credit rating.
Accordingly, is it a good idea to do a balance transfer?
If you are able to find a new credit card with a very low interest rate, little or no balance transfer fee, a credit limit high enough to accommodate your previous balance and an introductory period long enough to pay off the balance before the rate increases, then a balance transfer is a good idea.
How does a 0 balance transfer work?
Although you can transfer a balance to most credit cards, those that offer an introductory 0% interest period can save you the most money. These cards do still tend to charge a balance transfer fee when you move debt across, but they don't charge interest on the transferred balance for a set introductory period.
What does it mean to transfer a balance on a credit card?
A balance transfer is where part or all of the debit balance (or debt) you owe to another lender is transferred from one credit or store card to another, usually to save on interest repayments. A balance transfer credit card can be a good way to keep track of your balance and payments with everything in one place.