Asked by Anonymous at 2:52 PM on Sep. 28, 2009 in Money & Work
Answer by PrydferthMenyw at 2:58 PM on Sep. 28, 2009
Balance transfer switcheroo: Transferring a balance from an account with a high APR to another one with a lower interest rate could come at a high cost. Any payments you make are typically applied first to the lowest rate balance. So while the credit card company uses your payment to quickly pay off that 0 percent transfer balance, you are piling up interest on purchases, at say, 18 percent. Multiple balance transfers will hurt your credit score.
Read the fine print.
Answer by Anonymous at 3:49 PM on Sep. 28, 2009