3 Mistakes Often Made After Balance a Transfer
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What mistakes should I avoid after balance transfer?
If you've decided to transfer the balances of your credit cards in order to save money on interest, congratulations on making a smart decision. Of course, things that start out as smart decisions can turn into no more than simple stalling techniques if you don't follow through with your plans.
Here are three of the most common mistakes made after people transfer their credit card balances. Avoid making them and you'll be off to a good start.
- Paying late. When you pay late, you might trigger a higher interest rate on your transfer balance, and you'll definitely incur a late fee. In addition, this can hurt your credit rating, so not only are you costing yourself money, but you could be damaging your credit.
- Not paying off the balance before the introductory rate ends. When you transfer the balance of your credit cards, you pay a fee to do so. Since you go through this effort to save yourself interest charges, it only makes sense to pay off the balance during the term so that you maximize your savings.
- Continuing to accumulate credit charges. If you transfer your credit card balances, it's important that you stop spending and do not accumulate more debt.