Things to Consider When Choosing the Best Transfer Credit Cards

Nowadays, more and more Americans are looking at the best transfer credit cards, determining what suits their needs the best and then making the grave mistakes that put them on square one as soon as the credit card is issued. This can be attributed to many factors, of which the foremost is ignorance about what you can and cannot wisely do with a balance transfer credit card.

Before you go making the same mistakes, you should do your research about this kind of credit card. First off, a definition is in order. Just as its name implies, a balance transfer credit card allows for moving the unpaid balance on a credit card from one issuer to another on the assumption that the new bank card offers lower interest rates and zero transfer costs.

As such, you are able to save money in the short run. For example, if you are transferring an old credit card debt of $5,000 with a 15% interest rate to a new issuer with zero transfer fees and interest rate payable over a 12-month payment term, your savings over a year can be computed as:

Savings = (Debt Balance X Previous Rate) – Transfer Fee

= ($5,000 X 15%) – 0

= $750

Aside from these savings benefit, you can even avail of a rewards program offering cash backs, redeemable points and high credit limits depending on your credit qualifications. Indeed, the best transfer credit cards can be your ticket out of debt.

However, you must take note that once you fail to meet the terms and conditions of the balance transfer credit card, your savings will go flying out the window like so much dust. You will even find yourself with higher fees and interest rates than was levied on your old credit card.

One of the fine print provisions of most balance transfer credit cards is that on-time monthly payments must be made to the bank. Yes, even if it is just the minimum amount, you must pay promptly and regularly. Otherwise, the fees and interest rates charged on the card can be so high you will question why you transferred to another card in the first place.

Yet another thing to consider is that you must pay your balance transfer credit card debt within the allotted time period. If you fail to do so, the issuing bank will apply the regular fees, rates and charges on the card. And then your goal of triumphing over the debt can now be declared temporarily derailed.

Also, it is wise to stop using the balance transfer credit card for new purchases. Get another card, if you must, for separate purchases but leave the transfer card alone. You want to pay off old debts on the card, not add to it. Better yet, just purchase goods and services for cash until such time that your old debts have been paid and then you can use the transfer credit card again.

Indeed, even the best transfer credit cards cannot be of help in your financial situation until and unless you have adopted the right financial strategies. So, do pause, do research and do think about balance transfer credit cards today.

Related Information:

  1. Balance Transfer Fees Are Going Up It wasn’t too long ago that we were absolutely inundated with balance transfer credit card offers. It seemed as if we couldn’t turn around without seeing the latest and greatest…
  2. Balance Transfer Credit Cards – Some Things to Consider Before You Apply The reason for getting a balance transfer credit card is, more times than not, to save money by transferring a balance from a high interest rate credit card. It sounds…
  3. Choosing The Best Credit Card Offers Read how you can avail your self to the very best credit card offers on the market. Search, compare and apply for credit card offers that best suit you….
  4. Get the Best Credit Cards Balance Transfer Locating the best credit cards balance transfer it is not at all hard when you follow these helpful tips. Save money with a balance transfer credit card….