Multiple credit card balance transfers OK?
by Author on Friday, August 20th, 2010 | 2 Comments
If someone has a credit card balance (a few thousand) and they transfer it to another low-interest credit card, making all minimum payments needed, and then they transfer the balance AGAIN after that new low introductory rate expires (say in 6 months), would this be considered a good strategy for dealing with credit card debt, if you dealing with a modest income and are struggling to make ends meet?
Besides the disadvantage of not being able to pay down much of the principal amount on the balance, would there be any disadvantage to doing this? Is it a good strategy? Or does it hurt your overall credit?
Thanks...
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My wife rotates her credit card debt from one lender to another every time a deal comes up, and they keep offering the deals and she keeps going for it (after reading the fineprint to make sure it’s not a bad deal), and her credit score is still considered "high". I think having a decent credit score is what allows her to play that game/hobby in the first place. If your score is not the same as my wife’s, or if you make a tiny mistake and allow the deal offeror to screw you up, then your experience might differ.
Rather than transfer one credit card load to another credit card (and if you’re serious about reducing that debt load), then I’d suggest putting a card or three through the shredder and consolidate: I’d get a bank loan and pay all those credit card things in one shot. The interest on the bank loan will be a lot lower and a lot more manageable than any credit card interst rate.