So you are interested in finding the best balance transfer cards? The market is flooded with cards of various designs, offers and fees. It can be quite confusing for a beginner. This article will give you an overview of the most important criteria to consider while choosing the best balance transfer cards for you.
If you are transferring from a higher interest rate card, for example, to a lower rate one, you will want a card that will allow you to easily achieve your target balance in the shortest time frame. For this reason it is crucial that you read the terms and conditions carefully. A good introductory period is highly recommended as it allows you to take advantage of low interest rates and transfer your balance from high interest rate cards to a new card with much more favorable conditions.
The introductory rate on balance transfer cards is the one-time rate associated with the card offer. It is usually a very low rate, which allows you to effectively transfer your existing debt to a new card and pay it off at the end of the introductory period. This helps you free up cash each month and increase your credit limits. Before applying for any balance transfer cards, make sure you know the annual percentage rate (APR). This is the rate that is charged on any new purchases you make using the card.
There are different transfer credit limits. They are usually equal to or slightly less than the maximum credit limit on the account. Some credit card offers have a transfer credit limit of $1000, while others have a transfer limit of just $500. Be careful with the transfer limit on these cards. You do not want to transfer all your money into your new card and then run out of cash.
It is important that the transfer offer includes a low or no fee introductory rate. Most credit card companies offer some sort of low or no fee introductory rate to attract new customers. However, you do not want to transfer large amounts of money at this point in time. If you are in the process of rebuilding your credit, transferring your current outstanding debt into this type of credit card can actually hurt your credit rating.
The terms and conditions of the different balance transfer cards are very important. These include the transfer fees, penalty charges, grace periods and annual fees. Make sure you are completely aware of the charges for the transfer. It is a good idea to read the entire terms and conditions before you apply.
In addition to charges, you will also want to look at the APR. The Annual Percentage Rate is the interest rate you will be charged for using the credit card. Some cards charge very low APRs and many others have high APRs. If you are considering getting an introductory offer, make sure you take the time to figure out how much the APR will be over the course of the term.
As you can see, choosing the best balance transfer credit cards is not easy. You must consider your current finances as well as any special circumstances you have. Also look at the cost of transferring your existing outstanding debt. This will ensure that you are not paying more interest than you have to.
Once you have determined the best balance transfer credit cards, you should check to see what offers are available. Most cards offer introductory rates during the first 6 months. This gives you a good chance to get the introductory rate reduced if you are a good customer. However, keep in mind that the longer you stay with the card, the higher your interest will be.
If you find no interest rate to meet your requirements, you might consider applying for a cashback or rewards card instead. These cards will earn you a point every time you use your card to make purchases. The point can be used for purchases, cash advances, and cash back. You can choose the type of points that you would like. If you are looking for the best balance transfer credit cards, look for cards that offer the most cash back and save the most money.
A lot of people who have had bad credit in the past are able to still get credit cards. The key is being responsible with your credit card spending and making all your payments on time. Remember that it is possible to pay off your debt and get your credit score back up. Once you do this, you will be able to apply for the best balance transfer credit cards again. Take control of your financial life and start over by finding a card that works for you.