subject: How To Find The Balance Transfer Credit Cards [print this page] There are times when a person fails to meet his financial obligations on his credit card, and end up amassing a lot of high-interest-rate debts on their cards, which they find difficult to repay. Balance transfer credit cards give people an opportunity to do away with expensive debt by moving their credit card balance to a new card.
4 things to look for in balance transfer credit cards
The market is filled to the brim with credit cards that offer balance transfer feature, which instead of helping with the problem, has added to it. To help you out, I am going to list 4 features that you need to look for in balance transfer credit cards before switching to one.
How long will 0% balance transfer last
Many cards offer an introductory 0% credit card balance transfer for a certain number of months. When comparing various balance transfer cards, you should look for a card that offers maximum time to repay your dues at 0% because once this introductory offer on your card will end, the high interest rate will kick in. The card offering the maximum time to clear your credit card dues is, therefore, the best.
What does introductory offer covers
Most credit card companies make a killing by offering a long 0% credit card balance transfer period and high rate of interest on spending purchase as well as cash withdrawal. They use the consumer psychology to enact this plan. The companies know that people looking for balance transfer credit cards will pay little attention to the rate of interest levied on purchase, so they compensate the longer 0% balance transfer period with high rate of interest on purchase. You should also compare the rate offered on expenditure when comparing balance transfer credit cards.
Check the actual rate
The Annual Percentage Rate (APR) that you will get will be different from the APR advertised by the credit card companies, so you should double check the rate before you apply for a credit card for balance transfer, if not done, you may get a shock when you will see your first bill.
Is there any fee levied on the balance transfer
Credit card companies charges a certain fee on the balance transfer from other cards, which is around 3% in most of the cases. You should look for this as well when comparing balance transfer credit cards. You should compare the fee charged alongside the duration of 0% balance transfer offered in the introductory offer. You must compare these two head-to-head to fid out if the card is any good. There are some credit card companies that offer free balance transfer as well. Search for them.
These are the four things that matter when one shops for balance transfer credit cards. You must compare each card you are considering vis--vis every other cards in order to get the best balance transfer credit card
If you are stuck with high-rate credit card then you must consider shifting your balance to a new card. This will allow you enough time to clear the balance. You should carefully compare various balance transfer credit cards before purchasing one.
