Balance Transfer Credit Cards – What Do You Need To Know Before Applying For A Balance Transfer Credit Card

admin — Mon, 06 Oct 2008 21:50:14 +0000

These days, many people are faced with too many debts that stem from loose and inappropriate spending and borrowing practices. Much of these debts are comprised of credit card debts that are hard to manage especially if their repayment due dates and their interest rates are varied. If you are unfortunately one of these people who are bombarded with credit card debts, then you might as well consider getting a balance transfer credit card.

Balance transfer credit cards provide the credit card users with an opportunity to combine all their multiple credit card debts into a single credit card account. Such provides customers with an easier way to manage their debts. In addition to that, balance transfer credit cards also have lower interest rates that will allow the card holder to save more money which can be used to repay the principal loan amount easier and faster.

Unlike the high interest rates given to usual credit cards, balance transfer credit cards usually have fixed interest rates which can be as low as 4.99%. Moreover, most lending companies and banks that provide balance transfer credit cards will usually have an introductory offer of zero interest rate for about three to twelve months. Balance transfer card holders also have the standard benefits that most normal credit card holders enjoy. Such include zero annual fees, travel points, cash rebates, rewards, and more.

With the many benefits that one can possibly gain from getting a balance transfer credit card, many people are trying to avail this card offer. If you are planning to get a balance transfer credit card, below are some of the questions that you should take into consideration:

How long is the introductory period ?

The introductory rate for your new balance transfer credit card usually last for six months. However, there are those that are limited to three months and there are also some that can last for a year. Opt for a longer introductory period.

What’s the APR after the introductory period ?

Once your introductory period ends, the balance transfer credit card should be able to provide you with a low APR. However, since the APR inevitably increase afterwards, knowing the actual rate after the introductory period can motivate you to settle your debt earlier.

Where does the introductory rate apply ?

Some lending companies will apply different rates for the transferred balances and the purchases made using the card. Often, a different APR will also be applied for cash advances. If you card has different rates for various card balances, know where will the introductory rate will be applied.

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Balance Transfer Credit Cards – What Do You Need To Know Before Applying For A Balance Transfer Credit Card