If you are looking for a credit card that will allow you to make balance transfers from multiple cards or interest earning credit cards a 0% balance transfer credit card is the best for you. The best transfer offer available is the 0% balance transfer credit card with the longest period coupled with the lowest fees. Some cards bear no annual fees while others have no late fees and no penalties rates. It may not be possible to avoid all the fees but you can get an offer with the lowest transfer fees.
Compare balance transfer deals
There are many attractive balance transfer offers available. There are credit cards which bear long 0% APR balance transfer periods when the cardholder pays no interest on the balance carried on the card. These cards are the best if you have interest earning credit cards or when you want to transfer multiple balances into one card. You will have only one monthly payment to make and only one date to remember making you concentrate on other important things.
This card will help you manage your debts and reduce the costs if you make sure that you pay-off the debt within the 0% balance transfer period otherwise you will pay interest when the interest rate changes to the Regular APR. Read the fine print carefully before submitting the application form so you will know when the rate will change because although some ultra-premium cardholders enjoy special low fixed rates most of the balance transfer cards bear variable APRs which are consistent with the prime lending rates.
Find out from the terms and conditions if the finance charges will be based upon the whole balance transferred or on the balance remaining after the 0% balance transfer period. This is very important because if the company charges you on the full balance transferred you can lose a lot of money which you planned to safe. Luckily, if you are charged on the balance remaining at the end of this period you will save substantially if you make regular repayments or if you will have paid-off the balance transferred in full. If you carry a huge balance at the end of the period you will pay finance charges accordingly. Read the fine print carefully so you are not caught unawares.
Find the lowest transfer fee
Some banks lure the best customers by offering no-transfer fee to customers with excellent credit and those who hold their checking account and the credit card with the same bank. There are cards which charge no transfer fee within a specified period after which they charge a fee. If you are planning on making a balance transfer take advantage of the no-fee period otherwise look for a credit card which charges low transfer fee. Balance transfer cards are different and many charge transfer fees ranging between 3-5 percent.
When finding the best card look at all the features and compare all account terms to choose the best card for your needs. A balance transfer fee may be low on a 0% balance transfer card and yet the APR on new purchases may be a double-digit. If you plan to make new purchases, this card may be expensive while if you are interested in balance transfers, this card may be the best for you.
Plan your debt reduction wisely
Some people jump at 0% balance transfer credit card application and submission without reading the terms and conditions expecting to save substantial amounts of money. You must have a plan on how you will reduce your debts because the 0% APR period is not indefinite and sure enough it will come to an end. Try as much as possible to pay-off the debt within the specified period.
If you will not have cleared the balance and the Regular APR is high move to a low interest credit card. Compare the rates and plan wisely because if you keep moving from one credit card to another or cancelling cards regularly your credit score will be affected and part of your credit history on old cards will not be reported. If you plan on applying for a mortgage or loan in the near future, your credit history is important so you don't want to lose it.
Use credit cards to get out of debt. Consolidate the small balances into one card and enjoy the peace of mind which comes with one monthly payment and only one date to remember. Some banks allow you to transfer the small balance into one card while waiving finance charges within a short period. Reduce the interest you pay by moving your balance and paying it off within the promotional offers and you will save thousands or even hundreds of dollars if you follow a debt reduction strategy.