1. Hi,
2. Can someone please explain what a balance transfer is?
3. Why would I want to do one?
4. Are there fees?
5. Are there repercussions when opening several credit cards?
6. What should I be careful with?
7. If there is a post about this, I don't mind the link being pasted here.
8. Thanks!
I numbered your questions to make responding easier (possible?), hope ya don't mind:
1. Hi!
2.. A BT is when you transfer an existing balance (e.g. the $500 you owe on your Amex SPG) to another card (e.g. your Chase Sapphire).
3. To lower your interest rates (by moving the balance to a card with lower APR), this is the typical use for a BT, for someone carrying balances Ch"V. Some people also BT to take advantage of a BT related promo.
4. Usually 3-5% (with a minimum of $5/10), but the fees are sometimes waived (or lowered) for new accounts or with special promotions.
5. I'm not sure what you're asking here. You can transfer balances to any new account you open up to the CL, but this isn't always the prudent thing to do as there are usually BT fees.
6. That's a very broad question, but here are a few: Transferring balances up to CL will hurt your utilization and thus adversely affect your credit score. Also, many BT promotions have to process by a certain date for the promo terms to be in effect, so make sure to leave enough time for the BT check to process by the receiving bank.
7. I don't know of one offhand.
8. YW!