How to choose the best balance transfer credit card for your needs?

January 19th, 2012 | by admin |

Of course, any person with high interest debt on one or more credit cards is tempted to choose one of balance transfer credit cards. Well, today, there are many variants out there and it will pay to see which one best suits your needs. Here are some tips and tricks on how to do it.

How fast can you pay off the outstanding balance?

The most important factor in the choice of the card balance transfer credit is how fast you can reasonably pay the debt you transfer from other cards, because the interest rate will be very low or zero percent for a limited time only. Often in this type of credit cards, the rate will return to the rate of cash advance (generally higher than 20%) after the end of the introductory period of low interest rates. So be honest with yourself and do not apply for a card that only has a low rate of six months if it is likely closer to 12 months to pay it off because it can end up costing you more interest than you are currently paying. Calculate your debts on all cards and plan ahead.

What is the balance transfer rate?

There are many cards with 0 balance transfer rate there, with the introduction rate of less than 2%, so unless the card provider offers something in that area then it is recommended to shop around. You will need to consider the rate and duration of the combined offer, to see which works best for you.

How will you use this card?

This point is very important. If you intend to make purchases on your balance transfer cards the APR can be very high in the comparison with balance transfer rates, and you will begin to pay interest regardless of any interest-free period. It is wise to avoid purchases in total until you have fully repaid the amount of balance transfer.

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