The best balance transfer credit cards allow you, the customer, to move the balance of one or all your credit cards to another card. The main advantage is very low or zero interest rates. Balance transfer offers can be a good way to save money because most of them provide an interest free period for all new customers. This interest-free period can last from 4 months to 18 months depending on the type of card. If you use the best balance transfer credit cards wisely, you can easily combine several balances to a card for a much lower interest rate.
Do your research when selecting balance transfer offers. As with all credit card offers, you must verify what card is right for you. You want to get the best interest rates, a long introductory period and avoid any hidden fees. Some cards charge a transfer fee (about 3% of the amount transferred), so it’s something you need to consider as well. But as usual it is very beneficial to pay a small transfer fee and get a long promotional period, because you will save much more in 15 months then $ 120 with balance transfer offers. Once you have consolidated your balances, start to pay the debt effectively. It is also a good idea to do more than one payment a month.
The traditional credit card usually requires a minimum monthly payment that covers interest. For many balance transfer cards offering 0% interest for a limited time, you probably will not be necessary to make a payment for that period. If you are exceptionally disciplined, you can set up a separate saving account with a high interest rate, put money in it until you have enough to cover the balance of the card, then pay in one large lump sum. This method will only work if the transferred balance is manageable, if you keep not using the card, and if you have enough self control not to use money saved on your dream vacation or new car.
Always read the fine print when applying for the best balance transfer credit cards. Some of these types of cards only provide the 0% rate on the transferred balance and not on additional purchases. If this happens, you will need to pay interest on purchases you make. Also check what APR will be applied after the promotional period. As usual, the interest rate goes up, once the promo ends. So, it is advisable to check the APR before and after the introductory period.