Author: Melissa Kellett
If you have a growing credit card debt it would be wise to find a balance transfer credit card with the lowest interest rate available. There are several options for this kind of cards so the main issue is discovering which one is the best alternative for you.
Watch The APR
If you do not plan to pay the whole balance of the credit card, which is most likely, you will want to get the best deal possible on the APR. Search thoroughly, there are thousands of alternatives on the market, there are even cards offering a 0% introductory rate which you can benefit from.
But be especially careful as this kind of cards can sometimes increase significantly the interest rate charged after the introductory period has expired. You should have by then another credit card to transfer the balance to, or you should have already paid the whole balance by then. If you decide to transfer the balance from one card to another, make sure the new card has no interest, fees or costs for balance transfers. Otherwise you will end up paying even more than you expected to save.
Promotional Period
The best options are the cards that will remain charging the introductory rate till you payoff the whole balance completely. These are hard to find and not easy to qualify for, however, new offers are available everyday so do your research and try to get them. Lately, Credit Card companies are competing ferociously to get new clients and you will find many online sites with comparatives on what the different companies have to offer. Use these services and find the best deal available. There’s nothing to loose.
Transferring Fee
As stated before, when considering which card to get, make sure that it does not charge you for transferring balances. After all, this is precisely why you are looking for a card and it makes no sense paying an extra fee when you are trying to save money by paying less interest. Most offers state “0% Balance Transfer” which means that there is no interest charge over the transferred balance. However, in order to compensate for this, lenders charge a fee for the same purpose and though it is a single fixed fee it still adds up to your debt. So when you shop for a card make sure it is a 0% Balance Transfer Credit Card with no Balance Transfer fees or costs.
Other Costs
Moreover, be extra careful with all additional costs that the credit card companies try to conceal in the small print. Such things as renovation costs, issue costs, financial costs, bill issue costs, etc. are deceitful but not uncommon practices in the credit card industry.
Examine The Small Print
The APR is not the only thing that matters, sometimes, with lower rates come higher fees and costs to compensate. Do not be fooled, read carefully all the documents concerning the contract, demand that all the costs and fees be revealed to you. Then with all this information, compare your options and make a conscious decision.
The path to a debt-free financial situation requires a first step. Getting a balance transfer credit card can be this step, but you need to follow this advice carefully and avoid being deceived by those who just want to persuade somebody to get another credit card.
Article Source: http://www.articlesbase.com/debt-consolidation-articles/reduce-your-debt-with-balance-transfer-credit-cards-429059.html