The first way it can save you money is that, hopefully, the new card gives you a 0% APR interest introductory offer for balance transfers. You will need to double-check the fine print on the credit card to be sure that this rate applies to balance transfers. Most often it applies to the interest rate on your purchases, and only on some cards will it apply to transfers. If you also get that rate of interest on your transfers, then be sure to notice how long that you get that rate for. The rate on balance transfers is often different than the length of the introductory offer.
The 0% APR interest generally applies to your purchases made during the introductory time period. This gives you great savings over that time frame, but be sure to pay off the balance each month - and on time, for the best savings. Any late fees take away any savings you get, otherwise, and you may actually end up paying more than if you had made your purchase at retail prices.
Balance Transfer Fees
Another thing you need to look for is to see if there are any fees associated with the transfers. Some balance transfer credit cards will charge up to a hefty 4% of any amount transferred to the card. While this figure may sound good when compared to the interest on the other card, keep in mind that many cards will not charge anything.
Rewards
Choose your balance transfer credit card on the basis of this option, too, since you can definitely save some money here, if you get the right card. Rewards come in many types, but if you get one that is geared to your needs (most expenses per month), then you will probably be able to save considerably. A card with rewards on it means that you get either discounts on future purchases, rebates or cash back. This amount of savings can certainly add up after a while, and can put a smile on your face when your bill comes each month.
Remember to compare a number of balance transfer credit cards in order to see what kinds of deals are available. Also, be sure to look at the various fees, so that you do not lose the value of your rewards. There can be many fees on a credit card, but by shopping around, you may be able to get one that does not have very many, or, has fees that you can avoid with prompt and full payments. Get as low of an interest rate on the card as you can for the time after the introductory time period runs out or get a new card.
There's no doubt that an increasing number of people in our society are struggling with the high costs of credit card debt. If you are in this situation, you may feel helpless and hopeless. However, there is a solution that can give you immediate financial relief. Balance transfer credit cards offering a zero introductory interest rate can reduce financial pressure immediately. It is not uncommon for individuals and families to be paying hundreds of dollars every month in interest charges.
If you can save all or most of your interest costs every month you may be able to provide the time and money necessary to regain your financial balance. If you can use some of your interest savings to pay down your balance you will be in a far better position when your interest free period comes to an end. When this happens, if you still need respite from interest payments there is no reason why you can't transfer your balance again to another zero rate introductory card.
The best balance transfer credit cards have a long low or zero rate introductory period and low rates thereafter. While a three month introductory period will give you some respite from high credit costs, you will all too quickly find yourself paying normal interest rates again. To gain the most benefit try to find a card that offers a twelve month introductory period or at the very least nine months. The longer you can enjoy high interest savings, the more money you can pay off your balance and the more money will be available to catch up on bills and cover necessary family or personal expenses. If you want to transfer your balance to another introductory card, you will be less pressured and organized with a longer introductory period.
You can source balance transfer credit cards quickly and easily online. All-in-one credit card sites make selection and applications easy. If you have to trawl through all the different offers yourself and research them, you could take months if not years. Why not use a website that has done all the initial work for you? You will usually find detailed comparisons between a small selection of good offers. Once you have decided which one you wish to apply for, you can also apply online. It's almost too easy!
If you use balance transfer credit cards wisely, you will not only take pressure off your budget, you will pay down your balance. The more you can reduce your debt before normal interest rates apply, the better off you will be. In fact, these can be a very financial debt reduction tool if you use your interest savings to primarily reduce debt. For example, if you are currently paying three hundred dollars a month in interest and can pay that amount off your debt instead, at the end of a year you will be at least three thousand and six hundred dollars better off.
If balance transfer credit cards can make such an amazing difference, why don't more people take advantage of them? Probably because folks think they are too good to be true. Well, they are good and true. So why not do yourself a favor and take advantage of this amazing opportunity?
Both Joseph Kenny & Gordon Goodfellow are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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