Many credit card companies are advertising deals on balance transfers to their cards and some of the deals sound great on the surface, but it can be difficult to tell whether the balance transfer terms that the company is offering is right for you. There are several different things that you can look at to determine whether the balance transfer would be beneficial for you in the long run for your debt management plan and if the company is truly offering a good deal.
The Interest Rate
The most common reason to transfer a credit card balance from one credit card to another is to take advantage of a lower interest rate. This can be a tricky process as some credit cards will offer a low interest rate or 0% interest rate on the balance that is transferred, but the interest rate for new purchases is higher than the interest rate for the old credit card. It is important to read all of the terms and conditions of the new credit card and compare them to the information for the old credit card to ensure that you are getting the best deal.
Fees And Charges
Some credit card companies charge a fee for transferring a balance onto their credit card. Typically, this fee is around 3% of the amount transferred or $30 for each $1000 transferred to the new credit card. These fees should also be taken into consideration when attempting to determine whether a balance transfer will be financially beneficial. However, if you look around, you might be able to find a no fee balance transfer.
Transferring a credit card balance can be a good way to improve your financial situation and can be very beneficial if done correctly and for the right reasons. By taking the time to research different offers and compare them to each other, you can ensure that you are getting the best deal possible on a 0% balance transfer.
