Do balance transfers hurt your credit score?

A balance transfer itself should have a negligible impact on your credit score. However, if you continually open new credit cards and transfer debt around without paying it down, your score can be harmed in the long run.

Is a balance transfer ever a good idea?

A balance transfer can be a good idea if you have a high-interest credit card with a significant balance. Transferring the balance to a new card with a low or 0% APR can help you pay down the debt faster without the added burden of accrued interest.

Is there a catch to balance transfer cards?

There is no catch with balance transfers, but there are a couple of important points to be aware of. The first is that in most cases, you’ll be required to pay a fee of around 3% to 5% when you transfer a balance. However, this fee is usually worth the interest savings. Second, you should pay off your entire balance before the introductory APR is over, otherwise you will start accumulating interest at the regular purchase rate.

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