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What is balance transfer on credit cards

The interest you save on a short-duration transfer might actually be less than the transfer fee. After that period ends, a cardholder is likely to face another high interest rate on their balance, in which case a personal loan�with rates that tend to be lower, fixed, or both�is probably the cheaper option. Approval time for applications and communication between your new provider s and existing one s.

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calendar_month 02.10.2020

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Bmo mortgage cashback

Who CAN do a balance transfer? A history of past due payments, a low credit score, or a bankruptcy filing by the cardholder may also result in the decline of the transfer. You will usually be charged a fee of between 1. Balance transfers can have downsides, starting with the fees you might pay to complete. Types of cards. Just don't use them to charge more than you can afford to pay in full every month, or you can end up right back in the debt cycle. View all Financial Guides.