Should You Wait Until 2016 To Transfer Your Credit Card Balances
Should You Wait Until 2016 To Transfer Your Credit Card Balances or Act Now?
Transferring a credit card balance to another card, can have a lot of advantages. You can actually save more money over time depending on the new offer you are receiving and what you currently owe. The hardest thing to try to figure out is which card you may want to transfer to, if you want to transfer your balance, and when is the right time to transfer a balance? These are some questions that you may find that you are asking yourself.
Some things that you need to look at, with your current credit card, is what it’s interest rate is now, how much of a limit you have, and how much the annual fee is per year. You will need to compare off this information with the new credit card offer you are wanting to transfer over too. Balance transfers don’t always mean that you have to put another credit card on the new credit card. You can put other types of loans onto the card if you are wanting. Some of those loan types can include auto loans, furniture, student loans, or many other types. One thing that you must look out for is balance transfer fees. This is where the card may charge you a fee to transfer your balances. The higher the balance, the bigger the fee will be. This is another factor to consider.
The new credit cards are going to try to get you to open an account with them and transfer any balances that you may have. The cards will offer a low or zero percent interest rate. Keep in mind that rate is usually only good for six months to a year. Then it will spike up. The annual fee may be dropped the first year, but you need to see how much it is after that. If you try to transfer your balance to a new card every six months to a year, you are going to hurt your credit score instead of making it better.
If you have several credit cards or loans that you are having a hard time paying, then transferring your balances to a credit card may be helpful. It is going to show that you paid off those loans with a credit card, which will help your credit score. Also, instead of having multiple payments on each loan with different due dates to keep up with, you will have everything in one simple payment. This is a huge benefit and a great way to consolidate your debt.
The real question is, should you wait until 2016 to transfer your credit card balances or act now? This is simply going to depend on you and your situation. If you have a lot of debt, then transferring now may be the answer to help you consolidate your bills. If you are unsure if you want to, then you should wait until 2016 to see if there are better deals available.