Is it smart to pay off one credit card with another?
In some cases, moving a credit card balance onto another card (known as a balance transfer) makes good financial sense, because it can simplify your payments and may help you save on interest charges.
However, sometimes paying one card off with another can lead to more financial problems..
Can Balance transfers hurt your credit?
The balance transfer itself doesn’t influence your credit score. But keep in mind that credit scores may look at your per-card credit utilization as well as your overall utilization. So if the credit limit on your new balance transfer credit card is lower than the limit on your old card, your score could be affected.
Is it a good idea to do a balance transfer?
A balance transfer from one credit card to another can be an effective money-saving method to pay down expensive credit card debt. Say you’ve accumulated a large balance on a card with a high annual percentage rate (APR).
When you transfer balance on credit cards what happens?
A balance transfer is the process of transferring high-interest debt from one or more credit cards to another card with a lower interest rate. This will help you pay off debt faster, since more of your payments will go toward the principal balance each month instead of toward interest charges.
Should I close my credit card after a balance transfer?
WalletHub, Financial Company A balance transfer does not cancel a credit card. You are not required to close the account once a balance transfer is complete, either. It may actually be a good idea to keep your old credit card account open, even if you don’t plan on using it.