The Balance Transfer Trap
The Balance Transfer Trap
Low interest balance transfer cards are a dime a dozen these days, but the big thing to remember is that those rates only last a few months and then you have to switch cards again to get a lower rate once again. The problem with this is that at some point all this activity begins to show up on your credit report, and you start to look like a bad risk and getting credit will become harder. Then if you get turned down, you could be left with a high interest rate credit card you were hoping to transfer to a low interest card.
If you think you can swing from the balance-transfer to balance-transfer for a few months, just make sure you formally close all your accounts yourself, and then notify the credit-card company to mark the account closed at customer's request Otherwise, on your credit report, it will look like the creditor closed your account. Thus making you look like an even worse risk, even when you're doing your best not to be.
So before you start doing this balance transfer "game" make sure you know what you are doing cause this can be more harm than good in the long run.Member in good standing with:
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