This article describes how to save money with a credit card balance transfer.
Balance Transfer,Balance Transfers,Credit Card Balance Transfer
Around one third of all credit cardholders do not pay off their credit card balances in full each month, which means they are paying interest on the money for their purchases. However, in today’s competitive market many credit card companies are offering 0% credit card balance transfers for new customers. This can really help those people that are becoming farther and farther in debt by not paying off their balance.
With a 0% credit card balance transfer offer you can transfer the balance that you have on one card that is charging you 17% to a card that offers 0%. The new card pays off the debt that you have on the old card and then the balance is on your new card at the lower, better rate. Then you will have the time until this introductory feature ends to pay off the debt without incurring any interest fees.
A credit card balance transfer can be great if you can find one that will have the 0% long enough for you to be able to pay off your entire balance. Many of these credit card companies that are now offering the 0% balance transfer give you 3 months, 6 months, 9 months, 12 months, or 15 months to pay off your debt before you begin paying any interest on your balance. You should however, read the fine print of each credit card company to ensure that you will not have any other miscellaneous fees, and if possible, 0% on all new purchases as well.
If you do not believe that you can pay off the entire balance in the allotted time then a card balance can also be transferred to a credit card with competitively lower interest rates. American Express offers a fixed, low APR for credit card balance transfers for the entire life of the balance.
As you begin searching for a credit card balance transfer offer there are a few things you should take into consideration, which include:
– Does the credit card company charges for balance transfers?
– Do you pay off your card balance each month?
– Will you need to charge additional purchases with the balance transfer card?
– Will you pay off the card balance before the intro rate expires?
Some credit card companies may offer 0% credit card balance transfers but they may also charge you fees for the transfer. Most charge between 2 – 3% for the total balance transfer. You should always pay the minimum payment or you can find yourself paying finance charges. Most of the time, new purchases on the new card will not be given the same 0% APR and you will end up paying interest charges, since the money that you pay on the card balance will be put toward the balance transfer and you will be paying interest on the new purchases. Changing credit card companies before the expiration of the 0% or low APR may be the way to go if you still have a large balance left on your credit card.