Transferring one credit card balance to another does not hurt your credit rating, but it can cost you money. Most cards charge a certain percentage when you transfer a balance from another card (e.g., 3% of the amount transferred). The money you will save in interest by transferring to the lower interest rate card needs to outweigh any costs you would incur by transferring the balance. Your credit report will remain in good standing if you continue to make payments on time.
We would like your feedback on this Personal Finance Frequently Asked Question.
