The Best Way To Compare Balance Transfer Credit Cards
Through all of my articles, I make a conscious effort to teach you, the reader something that will help you to achieve financial success. Today, we will be talking about balance transfer credit cards. Before I delve into how to compare balance transfer credit cards, I want to talk a little bit about what balance transfer credit cards are and how they can help to improve your financial lifestyle.
Balance Transfer Credit Cards
Let’s start with what balance transfer credit cards are. Balance transfer credit cards are just like your every day run of the mil credit card. They are small pieces of plastic that you can use as an alternative to cash when paying for every day items like gas, food, clothes, ect… However, balance transfer credit cards offer one thing that other types of credit cards do not. These credit cards offer consumers the ability to use them to pay off high interest credit card debt. The ability to transfer balances from one credit card to your new credit card is how balance transfer cards got their name.
How Balance Transfer Credit Cards Can Help Your Finances
The ability to transfer balances from one credit card to another is indeed a great one to have. Most balance transfer credit cards also offer very low introductory interest rates. This means that as a consumer you are able to transfer debt from a very high interest rate to a very low interest rate. Being that credit card interest is how the issuers make their money, this reduction in interest is also a huge savings to you!
How To Compare Balance Transfer Credit Cards
Step 1: The first step in comparing balance transfer credit cards is to pay attention to the introductory interest rates. Introductory interest rates are low short term interest rates that the lenders issue to new comers of their credit cards. Generally, balance transfer credit cards will offer a 0% introductory interest rate for anywhere from 6 to 12 months. However, you will find multiple offers like the Discover® More Card – 18 Month Promotional Balance Transfer.
Step 2: The next step in comparing balance transfer credit cards is to look at the long term interest rates on the account. Remember introductory interest rates only last for a short period of time from the date of opening the account once the promotional interest rate expires, the credit card interest rate will then be changed to the standard interest rate on the account. Therefore, it is important that the standard interest rate on the new balance transfer credit card is lower than the interest rate on the credit card that you will be transferring the balances from.
Step 3: The next thing that you will want to compare when it comes to balance transfer credit cards is the balance transfer fee. With most balance transfer cards consumers are required to pay a fee of anywhere from 3% to 5% of the total amount of the transfer. However, with some select credit cards like the Slate® from Chase – Limited Time: No Balance Transfer Fee.
Step 4: Now it is time to compare the rewards. Due to the overwhelming amount of competition in the credit card industry, most balance transfer credit cards these days offer rewards programs. It is important to find a rewards program that you will use because these programs are calculated in the overall cost of the card. Therefore, by not using your rewards, you are cheating yourself out of important savings!