What You Need to Know About Balance Transfer Credit Cards

Posted by: Allie P. | Jan 05,2008

If you’re thinking about transferring your debts to a balance transfer credit card, there are a few things you should know. A balance transfer credit card allows you to transfer high interest credit card debt to a 0% interest or low interest credit card. This makes easier to stop accruing additional debt when you want to pay off your old debts. What you need to know before you start using a balance transfer credit card:

 

Balance transfer fees for rolling your credit card debt to a 0% interest credit card may be more than you expect. The balance transfer credit card applications I receive usually have a balance transfer fee of 3%, with a cap at $50 or $75. This isn’t a deal-breaker- it’s just something to be aware of before you apply for a credit card.

 

Learn what the interest rate for new purchases is before you apply for a balance transfer credit card. Often the interest rate for balance transfers is low, or 0%, but the interest rate when you use the credit card for new purchases is high.

 

You need to have an idea of what the interest rate will be when the promotional period ends on your balance transfer credit card. Hopefully, when that time rolls around, you’ll have already paid off your credit card debt. But if you still owe, you may be in for some hefty fees once the introductory low rate ends.

 

Compare and apply for balance transfer credit cards online. 

 

Sponsored Resources Ads by Google