0% balance transfers, when used properly, can save you hundreds of dollars in interest fees and help you accelerate the payoff of your credit card debt.  Unfortunately, there are also a number of mistakes that will cause those savings to vanish in an instant. In fact, misusing balance transfer offers could potentially end up costing you more than you’d pay with a traditional credit card.

Here are three of the most common mistakes – and how you can easily avoid them.

Forgetting Balance Transfer Fees: In the past, a number of no balance transfer fee credit cards existed. Today, you will likely need to pay a 3-5% transfer fee. On balance transfers that last a year or more, this is not an issue. However, on short balance transfers that last 6 months, paying a high balance transfer fee can eat away at your potential savings.

Closing Old Credit Cards: It’s a common scenario. A person transfers a balance from an old card and then quickly closes that account. It seems harmless, right? In reality, that simple act can negatively impact your credit score for years to come. The biggest hit goes to your credit usage ratio, which accounts for about 30% of your total credit score.

Let’s say you have two credit cards and you’ve just done a balance transfer. One card has a $3,000 balance and the other has a $0 balance. Both cards have a $5,000 credit limit. In this scenario, your total credit usage would be 30%, which is not too bad.  But look at what happens if you close the card that has a $0 balance. Your credit utilization soars to 60%. This makes you appear maxed out and will likely cause your credit score to decline.

Unless your old card charges a yearly fee, it’s always best to keep the old credit account open, even after you’ve transferred the balance.

Paying Late And Losing Your 0% Rate: Since the Card Act was established, credit card companies are not allowed to jack up your interest rate on existing balances due to a single late payment. However, the act does not cover promotional rates. If your payment is ever late, your 0% APR can turn into a 14.99% rate (or higher), literally overnight.

While it’s important to pay all your credit cards when due, it’s absolutely vital you pay your balance transfer credit card on time.

Forgetting Left Over Balances: When people do a balance transfer, they almost always transfer the full amount they owe. At least they think they do. What they may not realize is that compounding interest never stops . Which means, if you do a balance transfer, there’s a good chance you racked up interest charges while waiting for the transfer to occur.

Make sure you keep an eye on your old card and take care of any leftover interest that wasn’t transferred. Left undetected, those small charges can quickly add up and negatively affect your credit score.

By being aware, you can easily avoid these balance transfer mistakes. Obviously, paying your bill on time is the most important. However, keeping old accounts open, and checking for leftover interest fees will also help you get the most out of a credit card balance transfer.

About the Author:  April is a contributor to the blog at www.smartbalancetransfers.com/blog, a website that helps consumers learn how to maximize savings with credit cards.