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Transferring your credit card balance? Beware of transfer fees
If you’ve been using credit cards, and have a debt that is big enough to cause you some pain, then you are a prime candidate for this game. Here you are given tantalizing offers of transferring your credit card balance to a new card at zero percent interest for six months. Sounds just too good to be true, right? And yet, you cannot resist the temptation. After all, this way, you can transfer all your debt to the new freebie card and avoid paying interest for some more time.
But if CardRatings.com, a consumer-oriented Web site, is to be believed, you’re better off staying miles away from such offers. Card issuers attach a fee called a transfer fee every time you move your credit around. These fees are a percentage of the amount transferred and the catch here is that no cap is spelled out for the transfer fee in the card agreement. So, essentially if you plan to put $10,000 on your new card, an uncapped 4 percent fee would put you down by $400!
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