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5 Ways How Misuse of Balance Transfer Credit Cards Can Cost you Dearly

1. The credit card companies might stop approving such applications when they find that the applicant has a sustained history of balance transfer misuse.

2. Lenders like people who pay them interest, that's the main source of their income. So, if the find that when it comes to repaying your debt with interest, you simply cut corners and transfer the balance to a new credit card. They won't be interested lending to you.

3. With such repeated balance transfers, and closing old credit cards will have an impact on your credit history also. The remarks in your credit report can drive away potential lenders, and you'll have to face the music even when you apply for other type of loans like auto loan, mortgages, personal loans etc.

4. If a credit card issuer refuses one such request of balance transfer, your entire plans of getting the debt to a low interest rate can be jeopardized and you could be facing high APR's, which can land you in further trouble.

5. Balance transfer credit cards don't tolerate late payments, so if you miss out on a particular repayment all the benefit is lost and instantly the high regular APR's are applied. Again a low rate on balance transfers does not mean the overall APR's will also be low. There could be different APR's for purchases, and cash advances.

Though balance transfers are not a bad idea, but excess of everything is bad. Besides, denting your credit history, repeated balance transfers are also a bad financial habit. It is like not facing the eventual reality of repaying your debt. Balance transfers are there for good reasons and should be used as such in that way they will benefit the credit card holders in a big way.

Continually opening new low interest credit card accounts and shifting money without attacking the overall debt could worry lenders, potentially hurting your chances for borrowing money in the future. Credit card issuers favor customers who pay interest, viewing customers who transfer debts over and over to avoid paying interest as lessthanideal borrowers.

Such excessive balance transfer behavior can also make it tough to borrow money from other lenders outside of the credit card industry, such when shopping for a home or automobile.

Separately, should you make a misstep for example, by making a late credit card payment your credit card's regular (and undoubtedly much higher) interest rate will get triggered. That could also result in a sudden surge in the APR on your credit card debt.

5 Ways How Misuse of Balance Transfer Credit Cards Can Cost you Dearly

1. The credit card companies might stop approving such applications when they find that the applicant has a sustained history of balance transfer misuse.

2. Lenders like people who pay them interest, that's the main source of their income. So, if the find that when it comes to repaying your debt with interest, you simply cut corners and transfer the balance to a new credit card. They won't be interested lending to you.

3. With such repeated balance transfers, and closing old credit cards will have an impact on your credit history also. The remarks in your credit report can drive away potential lenders, and you'll have to face the music even when you apply for other type of loans like auto loan, mortgages, personal loans etc.

4. If a credit card issuer refuses one such request of balance transfer, your entire plans of getting the debt to a low interest rate can be jeopardized and you could be facing high APR's, which can land you in further trouble.

5. Balance transfer credit cards don't tolerate late payments, so if you miss out on a particular repayment all the benefit is lost and instantly the high regular APR's are applied. Again a low rate on balance transfers does not mean the overall APR's will also be low. There could be different APR's for purchases, and cash advances.

Though balance transfers are not a bad idea, but excess of everything is bad. Besides, denting your credit history, repeated balance transfers are also a bad financial habit. It is like not facing the eventual reality of repaying your debt. Balance transfers are there for good reasons and should be used as such in that way they will benefit the credit card holders in a big way.

Continually opening new low interest credit card accounts and shifting money without attacking the overall debt could worry lenders, potentially hurting your chances for borrowing money in the future. Credit card issuers favor customers who pay interest, viewing customers who transfer debts over and over to avoid paying interest as lessthanideal borrowers.

Such excessive balance transfer behavior can also make it tough to borrow money from other lenders outside of the credit card industry, such when shopping for a home or automobile.

Separately, should you make a misstep for example, by making a late credit card payment your credit card's regular (and undoubtedly much higher) interest rate will get triggered. That could also result in a sudden surge in the APR on your credit card debt.