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Question 16

Balance transfers with 0% promos can help if you can repay during the promo, but transfer fees and post-promo APRs matter.

A balance transfer will always reduce your total interest costs if:

Did You Also Know...

By Wise Wallet

APR reports interest without compounding, while APY includes compounding — so APY will usually look larger.

You ignore the transfer fee.You extend the term indefinitely.You pay off the balance during the 0% promo and the fee is smaller than interest avoided.You make only minimum payments.
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