Balance Transfer Credit Cards - Which One For You?
If you have any kind of existing credit card balances, balance transfer credit cards may be just the thing you need to reduce your credit card debt. They can also help you save money in other ways, too. Here are some ways that a balance transfer credit card can save you some money. 0% APR Interest The first way it can save you money is that, hopefully, the new card gives you a 0% APR interest introductory offer for balance transfers. You will need to double-check the fine print on the credit card to be sure that this rate applies to balance transfers. Most often it applies to the interest rate on your purchases, and only on some cards will it apply to transfers.
If you also get that rate of interest on your transfers, then be sure to notice how long that you get that rate for. The rate on balance transfers is often different than the length of the introductory offer. The 0% APR interest generally applies to your purchases made during the introductory time period. This gives you great savings over that time frame, but be sure to pay off the balance each month - and on time, for the best savings. Any late fees take away any savings you get, otherwise, and you may actually end up paying more than if you had made your purchase at retail prices.
Balance Transfer Fees Another thing you need to look for is to see if there are any fees associated with the transfers. Some balance transfer credit cards will charge up to a hefty 4% of any amount transferred to the card. While this figure may sound good when compared to the interest on the other card, keep in mind that many cards will not charge anything. Rewards Choose your balance transfer credit card on the basis of this option, too, since you can definitely save some money here, if you get the right card. Rewards come in many types, but if you get one that is geared to your needs (most expenses per month), then you will probably be able to save considerably. A card with rewards on it means that you get either discounts on future purchases, rebates or cash back. This amount of savings can certainly add up after a while, and can put a smile on your face when your bill comes each month. Remember to compare a number of balance transfer credit cards in order to see what kinds of deals are available. Also, be sure to look at the various fees, so that you do not lose the value of your rewards. There can be many fees on a credit card, but by shopping around, you may be able to get one that does not have very many, or, has fees that you can avoid with prompt and full payments.
Get as low of an interest rate on the card as you can for the time after the introductory time period runs out – or get a new card.
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