In recent times, credit card issuers have been offering a unique type of benefit to attract new business – balance transfer and 0% APR introductory offers. These special offers can potentially save you hundreds of dollars each month. But there is a catch. While these cards undoubtedly serve the purpose of helping you re-establish your credit score and manage your debt, they can also do quite a bit more.
If you are interested in making the most of these special offers, one of the first things that you need to do is work on your debt. You will need to identify the sources of your debt, whether it be from credit cards alone or from other sources such as loans or student loans. Once you have assessed what your current debt contains, it's time to take an inventory of all of your available credit card limits. Once you have this information, you should find the best credit card offer for your needs. That means that you must take your current card limits into account when comparing offers. If you transfer debt from one card to another, make sure that the new card has the same credit limit as the old one.
There are a few things that you should consider when transferring balances between credit cards. For one, it is important that you pay off the balance as quickly as possible. The longer you leave a balance owing on one card, the higher the interest charges will be. If you do this, you can help to prevent those high interest rates from being applied to your transfer balances. If you choose the right balance transfer offers, you can help your overall financial picture by reducing the amount of debt you have.
When you choose to make a balance transfer card offer, it is a good idea to research the transfer companies carefully. You may have heard good things about them. However, you need to make sure that there are no hidden fees. Be wary of any 0% introductory offers. They rarely deliver on their promises and can often end up costing you money.
Once you have chosen a card, it's time to start paying off your debt. One of the ways that you can help to ensure that you have lower interest rates is to pay your balance off as soon as you can. After all, the longer you hold credit, the more likely you are to miss payments. If you make your minimum payments on time, your credit score will begin to rise which can help to improve your credit rating.
When you find the best balance transfer card offers, there are a few other things that you can do to make sure that you are getting the best deal. Talk to the credit card issuer about the introductory 0% interest rate. If it seems too good to be true, you might want to consider looking for something else. For example, if you find a balance transfer card with an introductory rate of seven hundred percent, but your credit limit is only two hundred dollars, you could be waiting a while for your payment to become practical. In addition, if you are able to make your monthly payments on time, you will likely not have to worry about incurring late fees or over-limit fees.
A second tip that can help you get the best credit card offers is to look for balance transfer fee waivers. Balance transfer fee waivers will often have to do with the number of months that you are allowed to charge on the new credit card. Some companies will waive this fee for customers who maintain a balance for at least twelve months. If you can't maintain this level of balance, then you may want to consider other options. It is important to note, however, that many companies will also charge a balance transfer fee. The pros and cons of these fees vary widely so it's a good idea to shop around before you decide which company to choose.
A final option that you have when it comes to balance transfer cards and interest free periods is to use one card with a low interest rate and one that has a longer interest free period. This way, you will be able to pay off the debt without having to take out another loan. You will be able to save quite a bit of money in the process and the two card providers can combine your payments into one. This will make it easier for you to manage your debt as well. It might end up being more convenient to you to have all your payments come from one card rather than having to spread them out over multiple cards.