Transferring a balance from a credit card with a high annual percentage rate to one with a lower rate could save you a bucket of cash. You could, for example, save $750 by moving a $5,000 balance from a card with an 18% rate to one that charges zero interest for 12 months.
But not all balance-transfer offers are that straightforward, the Consumer Financial Protection Bureau recently warned. For instance, a low (or zero) interest rate may apply only to the transferred balance; a higher rate kicks in right away on new purchases. See what the rate will be at the end of the introductory period. How much of the balance will you pay off before the higher rate takes effect? Don’t forget to figure in the balance-transfer fee (usually 3%), as well as any annual fee.
Pay your bills on time to ensure that you’re not slapped with a penalty rate. Howard Dvorkin, chairman of Debt.com, recommends paying off the balance a month early, if possible, to make sure you don’t miss the due date, then check that the issuer received the payment.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Check how long you have to transfer a balance after you open a new account to capture the best rate and lowest fees. If you don’t have top-notch credit, you may not qualify for the lowest advertised rate, although the rate you’re offered may still be better than the one on your current card. To help you decide whether a balance transfer is worthwhile, use this calculator at CreditCards.com.
Our top pick: the Chase Slate card. It has no annual fee and charges no balance-transfer fee as long as you move the money within 60 days of opening the account. The rate for transfers and purchases is 0% for the first 15 months.
-
December 31 RMD Deadline: What to Know and What to DoTax Deadlines The year-end deadline for required minimum distributions is critical for many retirees.
-
Top Tax Stories of 2024 and Key Changes to Watch for 2025Tax News The Kiplinger tax team is looking back at popular tax stories and looking ahead to potential tax changes in the new year.
-
Five Ways to Save on Vacation Rental PropertiesTravel Use these strategies to pay less for an apartment, condo or house when you travel.
-
How to Avoid Annoying Hotel Fees: Per Person, Parking and MoreTravel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
-
How to Appeal an Unexpected Medical Billhealth insurance You may receive a bill because your insurance company denied a claim—but that doesn’t mean you have to pay it.
-
Amazon Prime Fees Are Rising. Here’s How to Cancel Your Amazon Prime MembershipAmazon Prime Amazon Prime will soon cost $139 a year, $180 for those who pay monthly. If you’re a subscriber, maybe it’s time to rethink your relationship. Here’s a step-by-step guide to canceling Prime.
-
How to Haggle for Almost AnythingSmart Buying Learning how to haggle is an invaluable skill. These strategies will help you negotiate a better price for just about any product or service.
-
Disability Insurance Can Provide COVID CoverageCoronavirus and Your Money If you are concerned about long-term complications from COVID-19, consider disability insurance coverage.
-
21 Things You Can't Return to Amazon — Either Online or In-StoreDid you know there are things you can't return to Amazon? Before tossing these items into your shopping cart, be sure to read Amazon's return policy first.
-
How to Avoid a Charity Scampersonal finance Scammers never quit, even when you're trying to be altruistic. But you can avoid getting duped if you do your homework.
