When you start shopping for balance transfer cards for bad credit, the rates will look pretty good. You just need to know what to look for and how to find the right card. First, it is important to know that these cards exist for people with poor credit. They are not for those with perfect credit scores. However, they do exist for those who would like to improve their credit scores.
Even the lowest offers for bad credit balance transfer cards could still be as high as 10%. And again, with the long terms you might only have six months or more to pay down the balance at this interest rate. So if you are able to pay your balance in less than a year, you could end up with a much higher monthly payment than before the card. If you cannot do that, you might be better off just taking out a secured credit card and making regular payments. A secured credit card is a great option for people with bad credit scores.
But balance transfer cards for bad credit actually exist. They are called unsecured debt transfer credit cards. The lenders who offer these types of loans do not make you give up any of your assets. They simply require that you have a decent income and a low balance to show them that you are making the payments on time.
Of course there are many different types of secured credit cards. Some transfer your balances between accounts. Others allow you to transfer your balance to a new credit card. This type of card allows you to use your regular Visa, MasterCard, Discovery or other credit card and makes it easier to manage your debt.
And there are still more offers coming. You can search for balance transfer offer cards directly online. Simply type in “balance transfer offer” in Google or Yahoo. Then there will be a list of offers to choose from. Most of these offer good deals that help people rebuild their credit scores. Some of them even offer you up to a 10% bonus when you make your first purchase within a certain period of time.
How does a credit card company go about choosing which balance transfer offers are best? For one thing they want to be able to attract as many customers as possible. That's why they offer special introductory rates and do everything they can to attract new customers. One way they do this is by offering balance transfers to those with bad credit scores.
Of course, this deal requires you to have a new credit limit. This means that you will need to build up some credit before applying for a new credit card. Fortunately, many people are doing just that when they first apply for a new card. So when they are offered a low interest rate balance transfer offer with the possibility of a bonus, many are more than happy to accept it. After all, they get to keep their old credit limit and receive a new credit limit which has a better interest rate – and most people are better off in the long run, anyway.
In order to get the best offers when it comes to balance transfer cards for bad credit, it pays to do some research before applying. Don't just pick the first one you find. Read all the details, know what your needs are, and then do some comparison-shopping.
The most reputable companies will offer free no-cost introductory offers when you sign up for balance transfer cards for bad credit. These can be an excellent way of establishing a good credit history and rebuilding your finances. Of course, you don't have to continue to be charged interest on your new purchases, but you do have to make payments if you want to keep the new credit limit. That is where the benefit lies: as long as you make your payments on time, you will soon pay off your balance and achieve excellent credit again.
You will also want to take a close look at any extra fees, charges, or other charges associated with balance transfers. This includes any annual fees, balance transfer fee, or finance charges. If any additional fees are incurred, it may make sense to look elsewhere for your credit cards. That is why it is so important to understand all the details of the offer before you sign.
One of the best balance transfer offers for bad credit scores out there comes from American Express, who has earned many customers over the years. With a variety of credit cards, this company has a way of pleasing even the most frugal consumers. In fact, they offer one of the lowest interest rates available for people who need to establish credit scores in order to improve their situation. Their introductory offers are especially enticing because of their low annual fees, which will be completely eliminated if you make your monthly payments on time. With low interest and fees, this is one of the best credit score rescue options out there.