Skip Navigation
School Search Form
After Navigation
Home Ask Student Aid FAQ What are Pros and Cons of Credit Card Balance Transfers

What are Pros and Cons of Credit Card Balance Transfers

Pros: There are plenty of reasons to consider transferring your balance from one credit card to another. Here are some top considerations:

  • Zero percent interest for a fixed period of time. This could be 6 months or even longer in some cases.
  • Better perks, including discounts, cash back and rewards. Maybe your current card(s) lack some incentives you could get elsewhere.
  • Consolidation. If you’re just tired of dealing with multiple accounts, it may be advantageous to transfer your balances to one credit card and deal with one company versus several.

Cons: Transferring your credit card balance may have some disadvantages. Here’s what you should know:

  • Beware of fees! Some credit card companies may charge a fee to transfer your balance, and may even impose an annual fee just for having the card.
  • Your APR (interest rate) could be higher than your current card. Don’t be fooled by the introductory rate that may be advertised. Pay attention to the rate that goes into effect for the long-term and what happens to your outstanding balance for a transfer made with an introductory rate if it is not paid within the allotted time..
  • There could be a ding on your credit score. Hard inquiries impact your score, even if it’s a reasonably low number of points. Depending on your current score, that may impact you more than you know. Every application and credit decision could count against you even if you get approved.