How to Compare Balance Transfer Credit Card Offers
If you have debt from different sources and are looking to consolidate that debt onto one, manageable card, then you may have considered a balance transfer offer from your credit card. Although balance transfer offers aren’t as plentiful as they once were, consumers can still find good deals on balance transfer offers if they have the good credit to back it up.
It is important to note, however, that all balance transfer offers are not created equal. Don’t get pulled into a credit card’s balance transfer offer by promises of low introductory interest rates and loads of hype; instead, carefully read each card’s terms and conditions regarding the balance transfer offer so that you can make the best decision.
What to Look for in a Balance Transfer Credit Card Offer:
- Introductory Period – A flashy introductory period is what often pulls consumers into choosing one balance transfer credit card over another. However, introductory periods, however fantastic are just that: introductory. In other words, don’t just look at the great introductory rate; look at the length of that introductory rate so that you can determine if the card’s terms are right for you. For example, a 3.9% introductory rate for 12 months may be better than a 0% introductory period for 6 months.
- Interest Rate – One of the most important considerations when choosing a balance transfer offer from a credit card is the card’s interest rate, once the introductory period has ended. A fantastic, low introductory rate may not do you much good if you still have a balance and the rate just jumped to 20 percent. Don’t get caught with a high interest rate credit card once the introductory period ends; instead, pay close attention to the card’s interest rate so that you won’t pay big in interest charges.
- Balance Transfer Fees – Balance transfer fees are those pesky, often-hidden fees associated with balance transfer offers. Balance transfer fees can add up to hundreds of dollars and are typically calculated as a percentage of the overall balance you will be transferring. It is important to remember that balance transfer fees can vary widely from one card to the next, so it pays to shop around for a balance transfer offer that’s right for you.
- APR for Purchases and Cash Advances – Always remember that your balance transfer rate often doesn’t apply to purchases and cash advances, so make sure you understand this before making any purchases or cash advances on your balance transfer credit card.
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