Rates and fees - Find Me a Card

Rates and fees

(Last updated: September 2021)

A credit card isn't just a stand-in for your debit card or cash, and it's not akin to a loan from a friend that you can quickly pay back.

Credit card companies make most of their money from fees they charge for the use of their services. Some fees, such as annual fees for some cards, are unavoidable, but you can minimize other fees by avoiding overspending and quickly paying down your balances.

To the uninitiated, reading about credit card fees may cause your eyes to glaze over, and credit card terminology can feel like a foreign language. But understanding how much your credit card costs doesn't have to feel like rocket science. In this article, we'll explain the key things to know about credit card rates and fees.

Contents:

Difference between rates and fees
Credit card fees
Credit card rates
Typical rates and fees for less-common types of credit cards
Introductory rates and fees
Credit card "gotchas"
Credit card industry stats
How the 2009 CARD Act changed the landscape of credit card rates and fees
FAQs

Difference between rates and fees

Credit card rates are charges that are dependent on how much you spend. For example, two credit card holders might have the same annual percentage rate ("APR"), but because rates are a percentage of the total balance, the cardholder who has a balance of $1,000 will pay more than the cardholder who has a balance of $10.

Fees, by contrast, aren't dependent on how much you owe, nor on the balance you carry. Instead, these are specific, pre-set flat fees (e.g., "$100 annual fee") or percentage-based fees (e.g., "3% fee for balance transfers") that you'd be charged.

Credit card fees

Types of credit card fees

Here are the types of credit card fees you might come across:

Type of fee	Definition	Example of typical amount	How can I avoid it?	How common is it?
Annual fee	This is an annual charge paid once per year on your card. It's a flat fee rather than a percentage.	$95	A lot of cards don't charge these fees, so the simplest way to avoid such a fee is to find a card that doesn't charge it.	Roughly half of the most popular credit cards on the market today have no annual fee, including many of the popular cash back cards. Annual fees are typically charged by sub-prime cards, but also by high-end premium cards, so it's the middle-of-the-road cards that will help you avoid these fees. Among the popular credit cards that do have an annual fee, it can range from around $50-100 for lower-end premium travel and cash back rewards cards to around $300-500 for higher-end premium travel cards. However, for people with poor credit, the fees on a sub prime card may be unavoidable, and for those with stellar credit, the benefits of a premium card may be well worth the fees.
Late fee	This is a one-time charge for failing to pay your minimum monthly payment by the due date. It's typically assessed in the billing cycle immediately following the late fee (i.e., the ensuing month), but you may see it show up in your online account as soon as the payment deadline passes.	$25	This one is simple to avoid. Pay at least your minimum balance on time every month. If you use a payment method that takes a few days to post, such as auto-debit from your bank account, you'll want to pay a few days early so that the payment doesn't post late.	Every credit card company charges late fees, but a few offer grace periods or one-time reprieves from late fees. If you have a stellar history with your card company, you may also be able to convince them to waive the late fee once.
Foreign transaction fee	When you spend money in a foreign country, your card company may charge you a fee on each transaction. This fee is intended as a convenience fee, for the convenience of your card company managing easy currency conversions and permitting you to use your card in a foreign country.	3%	Many credit cards don't charge these fees, and some allow cardholders to waive the fee by alerting the company of their travel plans well in advance of the trip. Avoid this fee by switching to a card that doesn't charge a foreign transaction fee, or by paying only in cash when you travel.	Only some card companies assess these charges.
Balance transfer fee	This is a fee assessed on your card when you transfer a balance from another card. It may be either a flat fee, or a percentage of the balance transferred.	3%	Such fees are most common on cards with introductory rates, since these cards are designed to encourage you to transfer funds from high-balance, high-APR cards. The simplest way to avoid such a fee is to avoid transferring your balance, but transferring your balance from a high-APR card to a low-APR card can be a useful financial decision in many cases.	Many (but not all) cards with introductory rates charge such fees. If you plan on transferring a balance from one card to another, shop around for a card that doesn't assess balance transfer fees.
Cash advance fee	This is a fee you pay when you request a cash advance from your credit card company. It's typically a percentage of the transaction, but may also be a flat fee.	5%	Try to avoid cash advances. These advances may seem like a good deal, but they're basically very high interest loans that cost you a lot of money in the long run. If you can't avoid seeking a cash advance, try to find a card that doesn't charge a cash advance fee.	The overwhelming majority of credit cards charge these fees, but a limited few cards don't charge these fees, so you may be able to avoid such charges by shopping around.
Returned payment fee	This is a fee your credit card company will charge you if your payment method is rejected. It's most common when you pay via check, but if you pay with a debit card and don't have enough money in your account, you can also be slapped with this fee. A returned payment also means that your payment won't post, which will lead to your bill being paid late. Consequently, if you're assessed a returned payment fee, you may also be stuck paying a late fee.	$40	Keep a cushion in your checking account so that, even if you forget a transaction or two, you'll never have to worry about bouncing a check or over-drafting. Setting up overdraft protection with your checking account can also save you the trouble of a returned payment.	All card companies will charge a fee for a returned payment. Because a bounced check costs the credit card company money, it's unlikely that you'll be able to negotiate to have this fee waived or refunded.
Over-the-limit fee	An over-the-limit fee is a fee assessed on your account when you exceed your credit limit. Your card company can charge you this fee up to two billing cycles in a row during which you're over your limit.	$40	The simplest way to avoid this fee is to keep your balances low and, ideally, to pay them off at the end of each month. If you can't do that, carefully monitor your balances. Interest charges and other fees can send you over the limit, and once you're over the limit, additional fees can make it hard to lower your balance again.	All card companies charge these fees, though you may be able to negotiate to have the fee waived once or twice.
Application fee	An application fee, as the name implies, is a one-time fee you're charged when you apply for a credit card.	$25 (but usually $0)	Don't apply for credit cards that charge such a fee, or ask the credit card company to have it waived.	Usually only the cards with the worst rates have these fees. Secured and sub prime cards, which target consumers who have poor credit, often charge these fees.

Other relevant terms/phrases and their definitions

Term	Definition
Payment due date	Your payment due date is what you should consider the “drop dead” final date to make your credit card payment, even if some credit card companies provide a grace period beyond that point. A word of warning: Some credit card companies will penalize customers with a late fee if those customers used the “pay credit card” link to pay online exactly on the due date. This is because the lending company may tack on an extra day or two that represents “processing time,” which can throw folks into the late payment period. In this instance, though, you might be able to get the first late-fee reversed by contacting the credit card company.
Grace period	This allows you to avoid finance charges when you pay your balance in full each month. The time period is normally about 25 days. Note: Cash advances usually don’t qualify for a grace period.
Minimum payment due	Another amount to pay close attention to is the “minimum payment due,” which is the least amount you can pay the lending institution by the payment due date in order to be considered not in violation of the terms of the agreement. The minimum amount you must pay back and how much interest you're charged depend on the individual terms entered into when you first applied for the card.

How to calculate the fees you'll be charged

Since credit card fees are one-time charges that are either clearly established flat fees or percentages of transactions, the amount they cost you is relatively easy to figure out. Simply determine the number of fees you expect to be charged, the amount of each fee, and how frequently you can expect to pay the fee. Add up the total and you'll arrive at an estimate of how much your card company charges you in fees every year.

Credit card rates

Note: When you hear people refer to credit card rates, they're typically referring to the card's annual percentage rate, more commonly known as the "APR". Therefore, this section about "credit card rates" will mostly talk about APR.

Interest rate (a.k.a. "APR")

APR stands for “Annual Percentage Rate,” which is essentially the interest rate you'll pay when you make purchases with your credit card and don't pay off the entire balance at the end of that month.

Your APR will usually change over time, and this is typically dependent upon other interest rates such as the Treasury Bill Rate and the Prime Rate. These cards operate on a variable interest rate plan. The much more elusive fixed-rate cards don't rely on outside variables.

Many cards also offer a low introductory APR for a fixed amount of time when you first acquire them. This temporary interest rate typically applies for about 6-9 months, after which the card’s variable or fixed rate kicks in.

How to calculate the APR you'll be charged

The APR is charged on any portion of your balance that is not paid by the due date. For example, if you only pay a $35 minimum balance on a card with a $500 balance, you'll pay interest on the remaining $465.

To calculate the specific amount you'll pay in interest during a set period of time on a specific balance, use the following formula:

Divide the APR by 365 to arrive at your daily periodic rate (DPR).
Use the DPR you just calculated in the following formula:
1. Amount you'll pay in interest = (DPR) * (Days in billing period) * (Balance on which interest is charged)

Let's say you have an interest rate (APR) of 20%, and you owe a balance of $500. If you carried that balance past the due date over a billing period of 31 days, you could calculate the amount you'll pay in interest during that period as follows:

20% divided by 365 = .0547945% (DPR)
Amount you'll pay in interest = .0547945 * 31 * 500 = $849.31

What's a "good" APR?

Because an interest rate is a multiplier that increases with your balance, the best APR is always the lowest one.

APR is determined by a number of factors, including the prime rate, your bank's standard rate, and your credit. Sub-prime cards intended for people with poor credit, for example, typically charge higher rates than premium cards designed for people with excellent credit. Consequently, a good rate for a person with poor credit may be very different from a good rate for a person with excellent credit. Generally speaking, though, a rate above 20% is considered high, while a rate below 12% is considered low. These numbers can fluctuate slightly depending on changes in the prime rate.

Although “good” and “bad” credit are somewhat subjective and each credit card company establishes its own independent criteria for determining rates and creditworthiness, the chart below chart can give you a hint as to the kinds of rates you can expect.

Credit history	Good interest rate
Excellent credit (No late payments, a variety of types of accounts, and a fairly long credit history)	13% or lower
Good credit (Few or no late payments, two or more credit accounts, and a medium-length to long credit history)	13-18%
Fair credit (Several late payments, limited or no credit history, few accounts)	18-22%
Bad credit (A history of many late payments, foreclosure, bankruptcy, charge-offs, collection actions, or other adverse credit events)	25-30% Note: It's unlikely that you'll be able to get a good interest rate, and you may not be able to get a credit card at all. If you are approved, though, your goal should be to get the lowest rate possible, which could be in the mid to high 20s. If your interest rate is high, you may want to try minimizing fees instead.

Typical rates and fees for less-common types of credit cards

The type of card you pursue can also affect the interest you pay, as well as the number of fees (if any at all) to expect.

When selecting a card, your best option is to choose the card that offers the best deal for that type of card. For example, you're never going to get a low interest rate with a secured credit card, but you can get a lower than average interest rate.

Type of card	Typical APR	Typical annual fee	Other notes
Secured credit card	18%	$20-200	You'll also pay standard credit card fees, such as late fees and over-the-limit fees.
Student credit card	15%	$0	These cards are typically low-fee cards, but you'll still have to pay fees for mistakes such as going over your card limit.
Store credit card	24%	$0	Be wary of store cards with 0% intro APR but also have "deferred interest", which means that finance charges can retroactively apply to your original purchase amount.
Business credit card	17%	$30-400	The annual fee generally increases as the rewards increase and the interest rate decreases. Also, some business credit cards offer one-time fee waivers if you pay late or go over the limit.

Introductory rates and fees

Credit card companies know that savvy consumers research rates and fees, and they've responded with introductory rates that give consumers a temporary financial break. These introductory rates typically last anywhere from a few months to a year or more, and average about nine months. During the introductory period, you'll pay a lower APR, and your fees may be decreased or eliminated altogether.

These introductory rate and/or fee cards are ideal for consumers who want to quickly pay down debt. If you have a $1,000 balance, for example, and don't have to pay interest or fees for six months, you can pay it off much more quickly than if your card were steadily accruing interest.

These cards can sometimes serve as bait-and-switch promotions, though. Minor financial errors may cancel the introductory rate, and some of these cards switch to excessively high interest rates at the end of the introductory period. Consequently, it's important to ask the following questions before signing up for such a card:

What is the APR, and under what circumstances would it change?
Which specific fees will I have to pay?
How long will the introductory rate last?
What will be the APR at the end of the introductory period?
If I go over my limit or make a late payment, will the introductory APR be cancelled?
Are there any other conditions I have to meet in order to keep the introductory rate and fees?
Are there balance transfer fees?

Credit card "gotchas"

It's a sad truth that credit card companies can make a tidy profit by confusing and misleading consumers. You might think you have a clear handle on the fees and interest you'll pay with your card, but credit card companies regularly play the "gotcha" game with their cardholders.

Some unsavory credit card tactics that can land you in financial trouble include the following:

Making the entire balance due and payable. If you're delinquent on your account, most card company agreements specify that the entire balance can become due and payable. Because a delinquent balance often incurs several fees in addition to APR charges, you can suddenly owe a large sum.
Charging you multiple fees. A 2009 consumer protection law ("CARD Act") limited the amount of many card fees as well as the frequency with which they can be charged. However, it didn't protect consumers from all fees. Credit card companies routinely charge multiple fees. For example, if you bounce a check, you might be charged a returned payment fee and a late fee. These fees could take you over your credit limit, and you'd then be charged a late fee. Fees can quickly add up, and for consumers with little money, this can lead to a major financial headache.
Rate hikes. Although the law limits how quickly a credit card company can increase your APR in the first year, there are exceptions to this rule. If you have a promotional rate, your card is tied to an index that increases, or you're more than 60 days delinquent on the account, your card issuer can suddenly and significantly increase your rate.
Delayed payment posting. If you pay your card on the day it's due, don't be surprised if you get slapped with a late fee. Some card companies take a day or two to post your fee, and most card companies don't post payments on the weekend. Depending on your card company's policies, you could be charged a late fee even if you technically paid on time.

Credit card industry stats

It's easy to overlook the importance of learning everything you can about the rates and fees your particular card charges. But even a cursory review of credit card industry statistics shows that card companies are making big money off of these charges.

US credit card industry noteworthy stats

Listed below are some interesting stats related to the U.S. credit card industry, mostly related to debt and credit cards. As some of these statistics will illustrate, it's unquestionably important to review a credit card's rates and fees prior to applying for it.

Total debt:
- Total credit card revolving debt among all Americans: $933 billion
- Number of bankruptcy filings per year: 1.2 million consumer bankruptcy filings and 41,000 business bankruptcy filings per year
Average consumer debt:
- Average credit card balance per credit card account: $5,900-6,600
- Average revolving debt per credit card account: $1,621
- Average total credit card revolving debt (across all of their credit cards) per person who owns at least 1 credit card: $4,600
Paying credit card balance in full vs. not:
- Percent of people who typically pay their credit card balance in full ("transactors"): 34%
- Percent of people who typically don't pay in full ("revolvers"): 41%
- (The remaining 25% are people who aren't actively using their credit cards.)
Credit cards per person:
- Credit cards per person: 3.1
- Retail credit cards (i.e., store cards) per person: 2.5
- Percent of consumers who have 0 credit cards: 26%
- Percent of consumers who have 1 or more credit cards: 72%
- Percent of consumers who have 1 or more debit cards: 77%
- Percent of consumers who have 1 or more prepaid cards: 32%
- Percent of college seniors who have 1 or more credit cards: 60% (vs. only 38% of college juniors)
- Percent of households that have 4 or more credit cards: 33%
Business credit cards:
- Percent of small business owners who say they regularly rely on credit cards: 37%
- Percent of small business owners who say their credit card terms got worse in the 12 months prior to being surveyed: 44%
- Percent of small business owners who pay off their credit cards every month: 50%

(Sources: WalletHub.com credit card surveys, CreditCards.com research reports, US Federal Reserve published datasets)

Average rates and fees

Of course, knowing what the industry is doing doesn't do you much good if you don't know how industry decisions will affect you. Check out these credit card vital statistics, which can give you an idea of what to expect every step of the way from completing your application to making your first payment. (Source: CardHub.com credit card industry survey)

Statistic	Average value
Fees
Average annual fee	$21
Average late fee	$34
Average balance transfer fee	3%
Average cash advance fee	3.4%
Average foreign transaction fee	1.5%
Rates
Average APR	18%
Average APR for people with Excellent credit	13%
Average penalty APR (the interest rate you're charged if you make a late payment or make a similar financial error)	25%
Average length of intro APR period	11 months
Average cash advance APR	21%

How the 2009 CARD Act changed the landscape of credit card rates and fees

If you've ever found yourself in credit card trouble or overwhelmed by debt, you might be horrified by how much power credit card companies have and how much money they can charge you.

But things used to be much worse. The 2009 Credit Card Accountability Responsibility and Disclosure Act (a.k.a. "CARD Act") significantly curtailed abusive credit card practices and limited the fees card companies could charge.

Of course, the law doesn't enforce itself; you have to know your rights to assert them, and knowing the limitations the CARD Act places on credit card companies can help protect you from abusive and illegal practices. Some of the most important rules under this law include:

The use of plain language on credit card statements. Banks have to use clear and readable language in a legible font, rather than printing the terms and conditions of your card agreement in a font you can't read or in a place that's hard to find. Additionally, credit card offers must come with large, clearly-defined boxes that outline the most important card information, such as its APR.
Promotional periods have to last at least six months, so your card company can't offer you a no-interest card for, say, two months, in an attempt to get you to switch companies.
Payments received by 5:00pm on the due date must be treated as on-time payments. This prevents consumers from accruing late fees, but payments made after 5:00pm can still be counted as late.
Credit card companies cannot increase your interest rate during the first year, unless any of the following are true: You have a promotional rate, you're delinquent more than 60 days, the rate increase is due to the end of a repayment agreement with the company, or you card's interest rate is tied to a variable rate index.
A limitation of $25 on late fees, unless you've paid late 2 or more times in the last six months.
Your credit card company can't allow you to go over the limit unless you specifically ask to be allowed to do so. In such cases, over-the-limit fees can't exceed the amount by which you are over the limit.
The upfront fees for opening a credit card can't be greater than 25% of the card's credit limit.
Payments must be due at least 21 days after a bill is mailed, allowing consumers more time to pay their bills.
You have to be notified in writing of most rate and fee changes to your card.

FAQs

APRs

What is an APR?

(Note: More info can be found in an earlier section of this page.)

What is an interest charge? When does it occur?

In exchange for letting you carry balances on your credit card, lenders charge a fee called an interest charge.

If you pay less than the full balance on your card each month or if you pay after the payment due date, you will pay interest on that balance. The interest charge is determined by transactions such as purchases of goods and services, balance transfers, and cash advances.

Since balance transfers and cash advances have no interest-free period, they start accruing interest immediately. If you carry a balance on your card from month to month, interest charges will quickly add up.

Does everyone get charged the same APR?

No. APR varies not just from company to company, but from card to card and consumer to consumer.

For example, a consumer banking with Wells Fargo might have a variety of credit card options, each of which comes with a different interest rate. That consumer's interest rate may (depending on the bank's policies) be determined partially by her credit score. Likewise, a consumer who misses payments or defaults on her balance may experience a change in her interest rate.

In general, intelligent management of your credit, in conjunction with a willingness to shop around and negotiate, can help you get the lowest possible rate.

Is there a limit on the APR my credit card company can charge me?

Generally, no. Some consumers mistakenly believe that state usury laws limit the APR credit card companies can charge, but actually, a 1978 Supreme Court ruling found that credit card holders were covered under the laws in the state in which the credit card company does business (not the state in which the cardholder lives). Consequently, most credit card companies have moved to states that do not have strong consumer protection laws, and there's no official legal limit on how much credit card companies can charge.

Instead, these charges are limited by the market. A credit card company likely couldn't survive charging a 70% interest rate because so many other cards charge lower rates. Similarly, a credit card company wouldn't be able to charge a consumer with good credit a 30% interest rate, since cards with lower interest rates are available.

When can a credit card company change my APR?

Within the first year after you open your account, your card company can only change your APR in a limited number of circumstances, including if you are delinquent for more than 60 days, or if you have a promotional rate that expires.

After that, however, your card company can change your rate if it gives you advance, written notice. Your card company can increase your rate if you make late payments or otherwise ignore your cardholder agreement, but can't typically increase your rate simply because you make a late payment on a different card with a different company.

How can I reduce my APR?

Your APR is tied to several factors, the most important of which are the prime rate and your credit score/history. If you have reasonably good credit, you may be able to negotiate a lower APR, particularly if you threaten to switch to another credit card company. If your credit card company is unwilling to budge, simply open an account with a company that offers a lower rate, and then transfer the balance and begin paying down your debt.

What is a periodic rate?

The periodic rate is the APR as it relates to a period of time.

When credit card issuers calculate your finance charges, they typically use your periodic rate, rather than your APR, because finance charges are calculated based on the number of days in the billing cycle. For example, if there are 29 days in your billing cycle and your APR is 12%, your periodic rate is 29 * (12% / 365) = 0.95%.

Rates and fees in general

Can I reduce the charges and fees I pay?

Maybe.

As long as your card company is following the law, there's no guarantee that you can reduce the amount you pay. That being said, the credit card market is a competitive one. If you ask for a reduction in fees or a fee waiver, you might get it -- particularly if you have good credit or have been with your card company for many years. Failing that, threatening to switch to a new company or actually switching to a new company can frequently help you get your rate reduced.

What happens if I don't pay the fees that I'm charged?

Credit card fees are assessed directly to your bill, which means you can't pay your bill without paying all -- or at least a portion -- of your fees. If you don't pay the fees, though, you'll eventually suffer the same consequences you would if you didn't pay the rest of your balance -- you may be stuck with late fees, and you could go over your credit limit. Your credit card company might even cancel your account or turn you over to a collection agency.

Are there some fees that aren't that bad or that are okay to accept?

It's almost impossible to avoid fees altogether, which means that you may have to accept some fees if you want to have a credit card.

All credit cards charge late fees and over-the-limit fees. Annual fees are also acceptable, particularly if you can only get a secured card with an annual fee or the benefits of the card are justified by the annual fee.

It's always best to minimize the fees you pay, though. If all other factors are equal, pick the card that has fewer fees. If, however, that card has a very low APR, you might actually be better off going with higher fees, so be sure to do the math.

Is it more important to reduce my card's fees or APR?

Except in the most extreme cases, it's more important to reduce the card's APR.

Fees are generally fixed, which means that once you know the fees, you can easily budget for them. But the amount you pay in interest depends on your balance. As your balance increases, you'll pay more in interest, and these interest fees further increase your balance, causing you to have to pay even more interest -- a vicious cycle.

The only exception to this interest rate rule-of-thumb occurs when you pay off your balance each month and you know you'll be able to continue to do so. If your income varies or you can only sometimes pay off your balances, go for the low-interest card. But if you're absolutely certain you can continue paying off your cards, then you won't pay any interest anyway. That means it's time to look at how you can save money on fees.

Introductory rates and fees

What happens when an introductory rate expires?

When your introductory rate (if you have an introductory rate) expires, it will increase to a higher rate. Some cards reel in consumers by offering very low introductory rates and then switching to high rates thereafter, so make sure you review the offer details before signing up for a particular card.

Credit limits

What is a credit limit, and how is it determined?

When agreeing to offer you credit, a credit card company sets a credit limit (a.k.a. "credit line"), which is the maximum amount of money available to you for purchasing goods and services each month.

Some issuers set this amount by comparing your credit score and a bankruptcy score. Others look at your income or debt-to-income ratio, and still others may use the limits on your other credit cards to determine the limit to offer you. Credit limits can be adjusted over time based on your usage patterns and how reliable you are at paying off your credit balance.

What is a cash credit limit?

The cash credit limit (a.k.a. "cash advance credit limit") is the amount of credit you have available for cash advance transactions. You can find out how much your limit is by looking at your monthly statement or by calling the credit card company's customer service department.

Disputes

What can I do if I have a dispute with my credit card company, such as not being able to close my account or a problem with my bill?

First, you'll want to call the credit card company to see if they're able to quickly resolve the matter for you.

If taking the problem through the issuer’s customer service does not solve the situation, you can submit a complaint to the Consumer Financial Protection Bureau (www.consumerfinance.gov/). This agency gives credit card companies 60 days to resolve and close most complaints before it takes further action.

Balance transfers

What are balance transfers, and how do they work?

A credit card balance transfer is the process by which you move existing debt from an existing account to a new credit card account, in order to take advantage of a lower interest rate offered by the new card.

The issuer of the new card then pays off your debt obligation with your old card's issuer, and places that debt on your new account. The reason that your new credit card's issuer would offer such a feature is to try and gain your business in the first place.

Important things to keep in mind: While many credit card companies offer very low or even 0% introductory balance transfer APRs, these rates often will expire after the first 6-24 months, and you may also be subject to balance transfer fees (separate from the balance transfer APR). Also, keep in mind that if you miss a payment or are late with a payment on an account with a balance transfer, you might immediately lose the introductory rate.

Do balance transfers hurt your credit score?

Although balance transfers have no direct impact on your credit score and credit scoring companies don’t factor them into their credit evaluations, they can have an indirect impact.

Credit utilization is an important part of your credit score. If you don’t use that existing account anymore, your utilization score will decrease. Additionally, if not managed well, a balance transfer can cause you to overspend, thereby increasing your chances of getting further into debt.