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Finding The Best Balance Transfer Credit Card Offers
By: Joshua Shapiro
They’re an alluring proposition. Like the mythic sirens luring sailors to the
rocks, credit card companies offer nonstop mailings to perspective customers,
trying to get them to transfer credit card balances. The credit card sirens
offer all sorts of lures, such as low introductory rates, rewards programs, even
zero percent interest—yet beware! The rocks of bad credit can be deadly to a
happy financial life. So to protect yourself, be sure to follow these steps to
knowing which credit card balance transfer options are the best, and which are
actually traps in disguise.
The first thing you should do when considering balance transferring is to read
the fine print of any offer. Therein lies the true intent of the credit card
companies—whether they’re offering fair ways to better manage your debt, or if
they’re trying to get you into a situation where they can make the maximum
profit off of your misfortune.
Not to paint all credit card companies in bad light, because they are some that
are honest and worth a look. To tell these good companies from the bad, look for
the following in the fine print of an agreement. Check to see how long the intro
rate will last. Is it just for four months before it jumps up to a high variable
rate, or will you get 18 months at that low, fixed rate?
Then logically, you’ll want to check what the rate jumps to after the
introductory period is over? Will it be only a leap of a few percentage points?
Or will you be in the 20+ realm of interest rates? The difference could mean
hundreds, if not thousands, of dollars to you in payments.
Next, check what all the terms of the new card will be. Will there be an annual
fee, and if so, how high will it be? What are the late fees for the card, and
the penalty for overcharging your balance? And what happens if you do one of
these infractions? Will you automatically and instantly lose your low
introductory annual percentage rate?
And the million-dollar question is: What are the balance transfer fees? This is
where a shady credit card company could make a killing off of your balance
transfer. Some credit card companies, for instance, could charge as high as 4 to
5 percent for a balance transfer. Depending on how much you’re transferring,
that can really add up to a huge lump sum that is added to your balance. That
leaves you to ask yourself—am I paying more for the transfer than I’m saving?
About the Author:
Joshua Shapiro recommends Find Credit Cards to find balance transfer credit card
offers. See www.findcreditcards.org/type/balance-transfer.php for more information. |
