Three Insider Secrets To Finding The Best Balance Transfer Credit Card
Finding the best balance transfer credit card isn't always
a cake walk. In fact, with so many different balance
transfer credit cards on the market (all with their own
gimmick) it can be kind of like looking for a dolphin in a
sea of sharks.
Fortunately, finding the best balance transfer credit card
doesn't have to be a treacherous swim. These three insider
secrets will teach you exactly what to look for when it
comes to balance transfer offers.
1. Why Introductory Rates Don't Always Matter
Those 0-percent balance transfer credit card offers can
sure look tempting. The problem is, they aren't always
everything they're cracked up to be.
Insiders know that the best balance transfer credit card
isn't necessarily the one with the lowest introductory
interest rate. In fact, unless you can pay your entire
credit card balance off before the introductory period is
over, a teaser rate shouldn't even be taken into
consideration.
Why?
Let's say you're currently paying 16-percent interest on a
balance of $5,000 and you find a 0-percent introductory
balance transfer offer. Looks good, right?
But what happens if that introductory rate takes a hike up
to 19.99 percent once the intro period is over and you
still have $3,500 to pay off? Now you're going to be paying
off the rest of that balance at a 19.99-percent interest
rate -- which is higher than what you were paying to begin
with.
If you want the best balance transfer credit card, the
first thing you need to do is assess how long you think
it's going to take you to pay off the entire balance. If
the amount of time you need is longer than the introductory
period offered, then you're going to want to opt for a
fixed-interest credit card rather than one with a low
introductory rate.
2. Analyze the Cost
Of course, interest rates aren't the only thing to consider
when it comes to getting the best balance transfer credit
card. You have to look at how much it's going to cost you
to transfer your balance to the credit card in question.
When looking for the best balance transfer credit card, you
need a card that charges a small transfer fee or, better
yet, no fee at all. Many balance transfer credit cards
charge a balance transfer fee. If the fee equates to more
than what you'll save by transferring your balance, it's
really not such a great deal.
In addition to balance transfer fees, you also need to
consider annual fees. Some balance transfer credit cards
charge annual fees of nearly $100. The best balance
transfer credit card won't charge an annual fee at all.
3. Rewards Don't Always Pay
Believe it or not, the best balance transfer credit card
probably won't have any rewards programs attached to it.
Because rewards credit cards usually come with a higher
interest rate attached, they don't usually make the best
balance transfer credit cards.
If you're looking to find a balance transfer credit card
that will allow you to pay off your debt quickly and with
as little interest as possible, don't waste your time
looking for rewards cards. Instead, look for credit cards
that offer a fixed low-interest rate.
When it comes to finding the best balance transfer credit
card, remember that while it may be tempting to jump on the
band wagon and grab the next card that offers you a
0-percent introductory rate, that may not be the wisest
decision. After all, the best balance transfer credit card
won't just offer you a phenomenal interest rate for a few
months, but will offer you a low interest rate over the
life of the balance.
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For more tips on balance transfer credit cards, saving
money and avoiding getting taken, check out
CreditCardTipsEtc.com, a website that specializes in
providing credit card tips, advice and resources.
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