Transferring balances to a low interest credit card is a widely prevalent practice.
But, is every available balance transfer credit card the same? A good look at
the offers and you will find that some of them surely standout from the crowd.
What makes them different and more lucrative? Here are 5 factors that will help
you select a balance transfer credit card that will prove more beneficial than
- Earlier it used to be 0% Intro APR on balance transfers for a specified
period, but now it is gone. It is very rare to find a balance transfer credit
card with 0 % Intro APR. So, the next best thign is a low APR for balance
transfer. There are many credit card which offer balance transfer at APRs
ranging from 4.5% to 7% for a limited period and a regular APR after that.
- It is good to have a low APR balance transfer but if a credit card offers
a low APRon balance transfer for a very short period of time, it is better
to look for another. Low balance transfer APR for the life of balances is
a good option to have.
- Credit card companies do charge some fees for transfering the balance. This
could be anything between 3-5% of the amount transfered. This balance transfer
fees increase the cost of balance transfer. So, the ideal situation would
be to have a credit card which doesn't take any balance transfer fees.
- Any balance that has been transferred has to be repaid, now what happens
is that if you have done a balance transfer and miss one payment all the goodness
of low balance transfer APR vanish and an instant high regular APR sets in.
This can prove fatal for all the goodies you expected with the balance transfer.
So, wouldn't it be nice to have a balance transfer credit card which offers
a grace period on repayment. Many credit card offer such facility and it's
definitely good to have one.
- Good account management options line online account access and fabulous
customer support will always help you manage your credit cards with ease.
A credit card which offers such services without any extra charge is definitely
a plus and should be given a priority.
These five factors will definetely help you choose the right balance transfer
credit card. But, remember balance transfer credit card do reduce the debt burden,
but the debt is still to be repaid and if you do it in a dilligent manner your
credit history will reflect this goodness.