 TITLE: How Do Business Credit Card Balance Transfers Work? CONTENT: Are There Drawbacks to Business Balance Transfer Credit Cards?\n--------------------------------------------------------------\nThere are some potential drawbacks to using a balance transfer credit card.\n*   **Balance transfer fees**: You can sometimes find business credit cards that don't charge a balance transfer fee, but in most cases, you can expect to pay 3% to 5% of the amount transferred. To decide if paying a balance transfer fee is worth it, weigh the amount you'll save in interest against the fee. For instance, with a $10,000 balance transfer, you could expect to pay $300 to $500 in balance transfer fees, depending on the terms of the credit card. If you have a 5% balance transfer fee and pay off the balance before the 0% APR period ends, you will still save at least $1,695 ($2,195 in interest saved minus a $500 balance transfer fee).\n*   **Potential for more debt**: Paying off the transferred balance before it starts accruing interest is key to saving money with a balance transfer. Also keep in mind that many balance transfer cards also have different APRs for purchases than for transferred balances, so using the card for new purchases could rack up more interest or even nullify the intro 0% APR on the transferred balance. You can look for a card that offers a 0% introductory APR on both balance transfers and purchases, or make sure you avoid making purchases on the balance transfer card at least until the promotional period ends. Check your card's terms to find out exactly how purchases can affect your intro rate.\n*   **Reduction in average account age**: A long, positive credit history is a factor in a good credit score; getting a new credit card will reduce the average age of your credit accounts. To minimize the impact of the new credit card, keep the old account open, even if you aren't planning to use it anymore. This will also help increase your available credit and reduce your credit utilization rate.\n*   **Hard inquiry on your credit report**: Applying for a balance transfer card will generate a hard inquiry on your credit report. A hard inquiry has a minor impact on your credit score that typically lasts for a few months. However, several hard inquiries in a short time period could have a more serious negative effect on your credit. Avoid applying for multiple business credit cards or other types of credit at the time you're applying for a balance transfer card. END