No. of Recommendations: 1
Can we extend the argument against 401k loans or withdrawals and HELs to balance transfers? There are a lot of reasons against doing a BT from a 20% card to a new 1.9% offer:

-you risk running up the balance on the old one
-if you close an old account when you open a new one you reduce the average age of your accounts, hurting your credit rating
-you'll get used to paying the lower minimums on the new card and then when the deal expires you'll be that much worse off
-if you lose your job you'll be talking to a company at which you don't have a long payment history -- they'll be much less likely to work with you than if you've been a long term customer

Or should we agree that there are risks and benefits of shifting money around, that the person doing it should understand and evaluate those risks and benefits, and individual situations will change which choice is the absolute best strategy?


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