Things To Look Out For In a Balance Transfer Card
Filed Under (Credit Cards Blog) by creditblogger on 08-09-2008
Balance transfer credit cards are very popular these days as people aim to transfer their high interest debts to low interest debts. We did have a post about how to choose the right balance transfer credit card. While choosing the right balance transfer credit card allows you to lower your debt and reduce your payments, not everyone knows how to use a balance transfer credit card. Here are a few tips on how to maximize your balance transfer card:
- Introductory APR Period: it is essential to understand your introductory APR and what you get with your credit card. If you get 12 months of interest fee balance transfers, then you should make sure that you take advantage of it appropriately. Most people transfer balances that can be paid in their introductory period, but of course if you are getting a decent APR after your introductory APR, then it may make sense to transfer higher balances.
- Introductory APR: balance transfer credit cards come with all kinds of features and fees. Make sure you understand your APRs (BT vs. Purchases). Some cards offer different introductory periods for balance transfer and purchases APRs whereas others such as Discover More Card offer the same introductory period for both APRs. In addition, some cards offer different rates for transfers and purchases. So you want to make sure you understand the difference before using your card for your daily purchases.
- Credit Level: excellent credit matters. And credit card issuers often give better deals to those with excellent credit. In addition, there are cards that are specifically designed for people with excellent credit. If you have great credit, make sure you use that to your advantage.
- Misc Deals: a few balance transfer credit cards come with life-time rates for your debt. While the APR offered is certainly higher than 0% introductory APR cards, you end up saving more with these cards in the long run. So if you are transferring massive balances, you may want to consider life-time APR cards.
At the end of the day, credit cards are like any other tools. You can have the most powerful tool in your hand, but if you don’t use it properly, then you are not going to reap its benefits. Planning always help. Don’t apply for a card just for the sake of having a new credit card. Identify your need and work your way throw multiple offers before settling on the offer that is best for you. That way you can start saving as soon as you get your card.
