No Balance Transfer Fee Credit Card Always Ask For The Catch
No Balance Transfer Fee Credit Card-Always Ask For The Catch Credit card companies are in the business of making money, and nothing more. So, when you see an offer for a no balance transfer fee credit card, it's only logical to ask what the catch is. Let's take a look at what exactly this type of offer entails, its bad points, and its good points. A no balance transfer fee credit card is one that allows you to transfer the balance of a current card (or cards) to the new one without having to pay a fee to do so. That's only fair, right? After all, the new credit card company will now be collecting interest on your money, so not charging you a fee would only make sense. Not so fast! Remember, credit card companies are in the business of making money. Sure, they may offer you a no balance transfer fee credit card, but they can get more money from you in other ways. The no-fee transfer offer might only apply to a certain amount of money, and then a fee kicks in on anything above that. The low interest rate may only apply to new purchases made on the card, and a higher rate may be applied to any transferred amount. Whatever the case, the rules for new purchases are almost always different than those for new purchases. The money you transfer isn't the only way the credit company can make money. You need to also pay attention to their standard interest rate and how it's calculated, what their late fees are, and whether or not there is an annual charge for using the credit card. Now, does that mean there is always a catch on a no balance transfer fee credit card? No, but you should always assume there is and only change your mind after reading the fine print in the offer. If you have excellent credit, then it is possible that you are getting a good no-strings-attached offer. The credit card company will still make money from you, but they will do it in the same way as a normal customer. However, you will also have a larger balance, so it will give them more holdings, and that's another way that they can make money. Assuming you really are getting a good deal, you still need to ask yourself if it's the right decision for you. The possibility of saving money can be tempting, but it will only work if you are disciplined with your finances. Far too many people transfer their balances from one card to another to save money, but then they use that "new-found" money to rack up even more credit card debt. In fact, making lots of transfers can be one of the warning signs of credit trouble. That isn't always the case, but it is something that you need to be aware of. While there are a few potential problems, getting a no balance transfer fee credit card is a great way to start getting out of debt.