Balance Transfer Credit Cards
Balance transfer credit cards are used in order to transfer old debts from previous cards into accounts with lower interest rates. This is also known as card jumping or rate surfing and can help many people manage their credit. In fact, this would be the perfect solution to all your credit card needs if it wasn't for the fine print that many people tend to ignore. The fine print can end up costing you more money and patience than you ever expected, so it is always best to be cautious of
balance transfers. Some things to consider when making balance transfers is the length of time the introductory rate on your new
credit cards will last, what the card's annual percentage rate is after the initial rate expires, whether the initial teaser rate applies to both charges and transferred balances, if there is an annual fee involved with the newer card, what the late fees and over limit fees look like and, most importantly, whether there is a balance-transfer fee with the new cards. Sometimes, high balances can be charged as much as four percent in transaction fees. Certain credit cards may also allow transferring balances from store cards. There are two useful kinds of credit card balance transfer offers. One involves a 0% balance transfer rate for a certain period, anywhere between six to nine months. However, this option is only helpful if you continue to obtain newer cards about a month before your transfer rate expires and use that rate to save money while you repay your credit cards. The tricky part is knowing just when to switch over in order to keep from being stuck with the standard variable rate, which will most likely be very high. Also keep in mind that applying for many credit cards at once can lower your credit score. For those currently paying a high interest rate, offers with fixed rates on transferred money can be a better choice. Fixed rates are usually around 5%, still lower than standard variable rates. As good an offer as this sounds, it is still important to read the fine print. Often, cards that offer low balance transfer rates involve higher rates for spending on the card. There are so many cards out there that you need to remember to do your homework before you select a balance transfer credit card. Each card is different and can only save you money if you know how to make it work for your lifestyle and your debt management.
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Balance Transfer Credit Cards