Like many people in North Carolina, carrying a large balance on your credit card may be a source of stress. If you have received an offer from a different credit card company to transfer your balance at an introductory interest rate of 0 percent, it may be tempting to immediately accept. Here is what you need to know about accepting an offer to transfer your balance.
Most transfer offers that come with a 0 percent annual percentage rate lock in that rate for a certain amount of time. 15 months is common but it may be longer or shorter than that. As CBS News points out, taking advantage of a transfer makes the most sense only if you are sure that you will be able to pay off the entire balance during that introductory period. If you do not, you will end up paying interest on the balance and the transfer may not have been worthwhile.
It is also important to consider how a balance transfer would affect your credit score. Any time you apply for a new credit card, your score drops slightly. If you are approved and make timely payments on the new card, that decrease should be temporary. But if you are declined credit or you continue to run up new balances on your old card, your credit score may take a more long-term hit.
However, if you are sure you can pay off the balance within the given timeframe, transferring your balance can be a savvy move. You will likely save yourself hundreds or thousands of dollars in interest over time. This is general information on this topic and should not be considered legal advice.