Many experts advise against credit card balance transfers. This is mostly because they can bring about more fees to pay if not done right. There is a need to consider a variety of options and perform extensive research on a multitude of credit card offers. In order to do balance transfers correctly, you should be guided on how to select the ultimate card for you. Cards with low interest rates are your best bet towards gaining more savings and living a stress-free life.
Tips in Choosing Your Credit Card
There are now several low interest credit cards that can be used for balance transfers. As a matter of fact, you can even find a number of credit cards that don’t have interest on the mentioned transaction. This will help you save lots of money in the end. However, there may be a hidden issue in this apparently perfect situation. While others offer low to zero interest rates on balance transfers, you may have to pay a high annual fee or unreasonable cash advance rates.
When you select the right credit card for your balance transfer, reflect on your debt. If you have a huge amount of debt and you feel that it may take longer for you to repay it, look at the card’s introductory period. Some only last for five months while others persist for nearly two years. The latter will help you garner savings as you obtain enough time to pay off your debt without worrying about high interest rates.
What You Should Know When Transferring Balances
Three of the most important factors that help you decide whether a card is right for you or not are the introductory period, the intro rate, and the standard rate. The introductory period is the duration of the introductory rate. Say a credit card offers 0% interest. This offer will not last forever. Usually, it can go on for a few months and then the regular rate will take over.
Ideally, you should look for a card that has very low APR. This may prove to be difficult but if you do your homework tirelessly you will get hold of the best deal. Note that balance transfer APR may not be the same as the purchases APR. Another thing to remember is that even though the card offers 0% interest, you may not be able to qualify for it. Often, creditors will take a look at your credit history and determine whether you are creditable of the promotion.
Cards Worth Checking Out
The Citibank Ready Credit Card gives you no annual fee and very low interest rate on balance transfers. Another great choice is the HSBC Credit Card which has no annual fee and 0% interest on transfers for a limited time. If you still have high dues to pay, consider Discover’s Platinum Card. The 0% interest on balance transfers are offered for one whole year. If you can handle a credit card with an annual fee, use Citibank Clear Platinum Card. This has every premium benefits that you can think of. There are competitive balance transfer and purchase interest rates as well.