Debt Management| Bad Credit Loans, Personal Loans, Getting a Loan

Credit card companies now make it so easy to transfer one credit card balance to another. We get so bombarded with all the advertisements for balance transfers it’s hard to decide what company to do business with.

Transferring your balance from one card to another is basically the same as consolidating your debt with actually go through the process of a formal debt consolidation loan. Transferring balances from many accounts to fewer accounts will not necessarily raise your score, because the same total amount is still owed. This may actually lower your credit score because it could be an indication that you are unable to manage your money and need to transfer your balance to make it easier to pay your debts.

The only reason you should transfer one credit card balance to another card is to save money and reduce your total debt owed. The mistake many people make is by not reading the credit card agreement or credit card disclosure agreement which is what the credit card companies are hoping for. When you receive your monthly statement you are shocked to see the new interest rate and can’t seem to understand why you balance has not gone down although you are sending in your monthly payments. It is important to pay off the full balance before the introductory rate special ends. If you charge an item on the new account after the special ends the interest rate may drastically increase or may increase if you make a late payment. Read more… »