Hey All, I was wondering if anyone could enlighten me on this topic. Can I transfer a balance from one of my credit cards to another credit card I have that has a lower APR? If so, how can I do it? Can I just pay off one credit card with the other? Thanks in Advance!
This is a common practice. A company will offer to transfer the balance if you sign up for their new card. The key word is NEW. Usually you cant easily do it for a card you already hold, but you could always ask the card issuer. This can be a good thing if you find one that has a lower rate. If, however, you try to do this a few times, it will hurt your credit score and eventually you will not have offers for cards at lower rates and the rate on the cards you are holding will go up. When a person looks to do a balance transfer it looks to lenders like the person has already lost control of their finances. This will make it more of a challenge in the future if you need a loan for a house or a car. If you do this, do it once only. Make sure that you are paying down the balance - not just the minimum payment - and dont add new charges until the debt is cleared.
