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How To Choose The Best Balance Transfer Credit Card
Are you unhappy with your interest rate on your credit card? Don't worry you're not alone! The majority of people are very upset about recent interest rate hikes, and rightfully so. One thing that you can do about your interest rate however, is take advantage of one of the many balance transfer credit card offers going around. These offers are a great way for credit card companies to compete for your business. They allow you to use very low interest rate credit cards to pay off your higher interest rate credit card debt. Sounds great doesn't it? Well there are a few things that you are going to need to pay attention to when choosing the best balance transfer credit card. First, you will need to learn a little bit about the promotional offers involved with the balance transfer credit card. Most balance transfer credit cards will give you a zero percent promotional or introductory interest rate for balance transfers and purchases for the first 6 to 12 months of opening the credit card. Make sure when you choose your balance transfer credit card, it offers a 0% promotion as well. Why pay interest when you don't have to? The next thing you want to look at when you are looking for the best balance transfer credit card is the standard interest rate for that particular credit card account. The introductory interest rate is the way that the credit card companies suck you in. Zero percent is a beautiful thing but, don't think that zero percent interest rate will last forever. All credit card companies are in the business for the same reason, TO MAKE MONEY! Make sure that once the introductory interest rate is gone, you are not going to be paying more money than you are already paying as is. Remember the ultimate reason for going through all of this is to save money. Another thing you will want to pay attention to is the balance transfer fees. The majority of credit card companies will charge anywhere from 3% to 5% of the total transfer to complete the transaction. Be aware of the fees but don't let them scare you out of the deal. If you are paying anything more than 5% interest rates, it is worth a 5% fee to transfer from what you are paying now to zero percent for the year. Once you get your balance transfer credit card, please remember always to use credit cards responsibly. Credit cards are a privilege, banks issue credit cards with hopes that people will do the right thing with them. Using credit cards destructively can harm your financial well being and is not advised by myself or any other financial professional! Share Share this article on FaceBook! Tweet Tweet this article! If you have a question regarding credit cards or personal finance that you would like answered, please feel free to answer the form below.
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