What is the best balance transfer credit card? This is one of the questions that every person who is currently struggling with debts asks. While there are several options available for a person who wants to remove their high interest and multiple credit card payments, not all of them will be successful. In order to be able to find out which balance transfers will give you the best results, you need to understand how they work and why they are better than other options.
Balance transfers with no credit limit are known as zero rate balance transfers. They can save you hundreds of dollars in interest charges over the life of the loan. However, they are not ideal for people who have a lot of debt or are looking for a long term solution. The reason why they are not ideal is because they require you to pay a large interest fees upfront in order to take advantage of the zero rate period.
Credit card offers that feature balance transfers at moderate interest rates over a longer period of time, such as twelve to twenty four month terms, are called introductory offers. These types of credit card offers are usually associated with credit card issuers who want to attract new customers. The reason that they offer great long term benefits is because they offer a low interest rate on balances held for a specified period of time. They then charge a high interest rate once the introductory period has expired.
Balance transfers with no credit card balance transfer fee are an alternative to introductory offer cards. These transfer offers have no interest rate for a specified period of time but then charge a normal interest rate after the introductory period has ended. These transfer offer fees can be extremely expensive. They are generally applied in the same way as a standard interest rate charge.
Before you choose to transfer your balances you should read the fine print carefully. Most credit card balance transfers require you to close your account. This means that you will not be able to take advantage of the additional benefits offered if you were to continue to keep your account open. This can mean hundreds of extra dollars every year saved when paying down your credit card balance.
To find the best balance transfer credit card offers always read the terms and conditions. You should look to see if the interest rate is the same no matter what type of credit card you have. Some cards offer a low introductory interest rate but then charge a higher interest rate once the introductory period has ended. Others will offer a lower interest rate after a specified number of credit card balance transfers but will then charge a high rate once the introductory period has ended. This means that if you were to go through your entire list of cards you would pay more in interest than if you transferred your balances.
If you want to save the most money on your transfer then make sure you read over all the details for the offer you are interested in. You need to make sure you understand exactly what you will be charged for your introductory period, any balance transfer fee and any other fees. Remember that the interest rate you will be charged will be much higher than if you had kept your balance lower. Therefore it is essential that you read through everything so you don't have any surprises at the end of the introductory period.
The best balance transfer credit cards require you to start small. Never go over the minimum credit score required for a card to be considered. Otherwise you will have very expensive payments and a high interest rate. Always pay off your new balance before the end of your introductory period to ensure that you are saving money each month. And of course it never hurts to read through the terms and conditions so you know exactly what you are signing.