How to choose the best Balance Transfer credit card
Choosing the best credit card will help you a lot in meeting your needs. But when some of this needs are not met, the best is choosing the best balance transfer credit card. If you choose the right credit card, choosing a good balance credit card won’t be a liability to you.
What is a Balance transfer (credit Card?)
A balance transfer credit card is a card that’ll enable you to transfer your debt from one credit card to another. It saves you some interest payments each month. A balance transfer will help you to save some money on a higher interest debt credit card.
You’ve to pay off all the existing balances on a credit card and then transferring them to another credit card. Sometimes, you may have to pay some charges to transfer the balance to another credit card.
How Does the Balance Transfer Work?
If a cardholder has a high balance on a credit card, with say 25% APR rates, he’ll then transfer the debt to the credit card with a lower rate. This will help save you some money and you can now easily pay your debt faster.
However, before considering any balance transfer credit card, make sure to look out for credit cards with low or 0% introductory interest rate for balance transfers. It’s these introductory interest rates that’ll help reduce or remove the finance monthly charges. Choosing a 0% or a very low-interest rate credit card would be just perfect for you.
Things to consider in choosing the best Transfer Credit Card
Regular balance Transfer APR
As soon as the introductory period is over, you’ve o pay back interest at the regular balance transfer rate. Sometimes, you may end up paying a higher interest rate at the end of the promotional periods.
Legally, promotional interest rates for credit cards should last for at least 6 months. Though, most credit cards like Modells credit card offers more than Six months introductory Rates.
Some offer introductory rates up to 18 or 21 months. Moreover, the more the introductory time, the better for the cardholder. This is because it’ll help you to have more time to pay off all the balance.
The Purchase APR
Credit cards offer introductory rates you all purchases and balance transfers. Therefore, if you’re racking up charges on your card, the introductory purchases can work against you because of the promotional rate. Promotional rates may work against your paying off your Balance transfer.
Balance transfer fee
If you’ve looked for the best balance transfer credit card, look out for the ones with a low balance transfer fee. The more the balance transfer, the more the fee. Normally, balance transfer fees are between 3% and 5%. But if you can get a credit card that charges less or no introductory interest rate the better for you.
If you Qualify for the Transfer
You don’t have to bank only on the 0% rate of the introductory interest rate. First of all, you’ve to qualify for the transfer balance. To qualify, you’ve to have a good credit history to qualify for the balance transfer.
The Time of the Transfer
Making some balance transfers has to be at a certain timeframe. Some of them you make within the first 60 days of opening the account. In case you don’t want to do a transfer within this period, you’ve to want and apply for another card. Apply for a card that doesn’t need you to make an upfront transfer.
Credit Card Issuer
if you’re considering a good balance transfer credit, you shouldn’t consider credit cards owned by the same card issuer or company. So you can make the best choice from credit cards of another company other than the one you want to make the card to or from.