 TITLE: What Happens to Your Old Credit Card After a Balance Transfer? CONTENT: When Does It Make Sense to Transfer a Balance?\n----------------------------------------------\nTransferring a balance can be hugely beneficial for some consumers, but it isn't for everyone. Here are a few ways it can be a positive:\n*   **Saving money on interest**: Say you're currently paying 20% interest on your existing credit card debt. If you transfer that balance to a card with an intro 0% APR of 18 months, even with a balance transfer fee, you'll score massive savings by avoiding interest for an extended time. This can also help you pay down debt much faster.\n*   **Simplified bills**: If the credit limit on your new balance transfer card is large enough, you can transfer balances from multiple cards onto it. This allows you to consolidate multiple debts with various minimum payments and due dates into one streamlined monthly bill. This can make it easier to pay bills on time—which helps you avoid late payment fees and keep credit scores healthy.\n*   **More favorable terms**: It's possible that you can find a balance transfer card with preferable terms and conditions to your previous card, offering benefits beyond the intro period. For example, maybe it has no annual fee, no late fees, cash back or travel rewards, or other perks you didn't have before.\nOn the flip side, balance transfers have some potential downsides:\n*   **Balance transfer fees**: Depending on your current interest rate, a balance transfer fee can easily be outweighed by your future savings on interest payments. However, these fees are often 3% to 5% of your transferred balance, which is added on top of the balance on your new card. Again, it can be offset by the savings, but it's worth doing the math to make sure.\n*   **A higher APR later**: When a balance transfer card's introductory period ends, the APR jumps from 0% to its standard APR. It could be lower than your existing card, continuing to save you money, but it's also possible it will be higher. Check the new card's terms closely so you know what the regular APR will be. If you still want the card, but the regular APR is steep, focus on paying off the balance during the 0% APR period.\n*   **Limits on transfers**: When you're approved for a balance transfer credit card, the credit limit you receive indicates the maximum amount you can transfer. If the limit the issuer grants you is lower than the balance you intended to transfer, you won't be able to transfer the entire balance and will have to keep some of it on your old card. END