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Guide To The Best Balance Transfer Credit Cards
By: Will Roberts
Balance transfer credit cards make an excellent choice for consumers looking to
transfer a balance from a higher interest rate credit card to one with a lower
interest rate. In this way, the consumer can save money by reducing or even
eliminating finance charges. When looking for the best balance transfer credit
cards, it is important to look at a variety of factors.
The APR is one of the first factors a consumer should consider when looking for
the best balance transfer credit cards. Credit card companies are hoping to
steal your business away from other credit card companies. As a result, they
often make special introductory offers with lowered interest rates for balance
transfers. In many cases, this APR will even be 0.00%. Be sure to find the
balance transfer credit card offering the lowest APR, and then only use that
card for your balance transfer. Don't use it to make any purchases. This is what
the credit card companies are hoping consumers will do so they can assess
finance charges on the purchases they make with their card.
The length of the special introductory APR varies from card to card. Sometimes,
the length is also dependent upon the applicant's credit history. It is
important to be sure how long this period lasts and to set goals to have the
balance paid in full once the introductory period is complete. The best balance
transfer credit cards will keep the special introductory rate in effect on the
card for the life of the loan. In other words, the APR stays the same until it
has been paid off entirely. For consumers that will not be able to pay off the
balance within the introductory period, this is certainly the best way to go.
Most credit cards assess fees when making balance transfers. These fees are
generally determined as a percentage of the total amount of funds transferred.
Most commonly, balance transfer fees are 3% of the amount transferred. Many
balance transfer credit cards will, however, waive these fees during the
introductory period. It is best for consumers to choose these balance transfer
credit cards. Otherwise, they may be paying large amounts in fees, negating the
savings in finance charges.
Some balance transfer credit cards require initiating balance transfers at the
time of application for the card. Yet others allow balance transfers to be
completed throughout the duration of the introductory period. The best balance
transfer credit cards are the former, simply because they allow for more
flexibility. Consumers who are sure they will not need to transfer balances
later may, however, be happy with a credit card that only allows transfers to be
made at the time of application.
Some balance transfer credit cards place restrictions on the types of balances
that can be transferred. For example, some business credit cards only allow
business expenses to be eligible for introductory rates. It is important for
consumers to be sure to understand what type of balances can be transferred
before applying for a card to ensure it meets their needs.
Many balance transfer credit cards also have special rewards programs. Consumers
need to compare the programs before deciding on a credit card so they can choose
the card with the rewards program best suited to their lifestyle. In addition,
some balance transfer credit cards do not count the funds that are transferred
toward the points system used in the rewards programs. To get the most of the
card, consumers should find balance transfer credit cards that do count the
transfers toward their rewards programs.
About the Author:
Will Roberts recommends you visit CreditCardAssist.com to learn more about the
best balance transfer credit cards currently available in the marketplace. |
