Best Balance Transfer

June 2nd, 2010

Comparing the best balance transfer credit card offers can sometimes be a little confusing.

The ultra-low rates can be tempting, but not all balance transfer cards are the same.

How to Find the Best Balance Transfer Credit Card to Suit You

The best balance transfer credit card offers can be amazingly tempting for many people. The object behind these types of cards is to transfer the outstanding balance you have on a high-interest charging credit card account over to a new card charging a much lower interest rate.

Card holders can benefit from reducing the amount of interest they pay on their credit card debt. This can really make it easier to begin reducing debt levels and regain control of your finances again.

With many credit card issuers advertising ultra-low interest rates on balance transfers, it’s easy to see why so many people are tempted to make the switch.

Unfortunately, not all balance transfer cards are the same. If you’re serious about finding the best balance transfer deal to suit your needs, there are some things you should consider.

Short Term Balance Transfer

Many balance transfer deals are offered for a short term, usually around 6 months. This means card holders can benefit from a really low interest rate on the amount they transfer to the new card for up to 6 months. The shorter term deals often display the ultra-low interest rates that attract most people’s attention.

However, it also means that when the low introductory rate expires, the interest rate will revert to the standard purchase rate, which will be higher. If you haven’t paid down the balance by this time, you could find you’re back to paying high interest rates on your debt again.

If you think you can realistically repay your credit card balance within 6 months, this could be the ideal option for you.

Long Term Balance Transfer

If you have a larger credit card debt to pay off, or if your income is already stretched so far that reducing your credit card balance is next to impossible, then a long term balance transfer might be the better option for you.

While the longer term balance transfer deals generally run for 12 months or longer, there are offers that allow you to continue receiving the low rate on your balances for however long it takes you to repay it all.

In most cases, you’ll find that the longer term balance transfer interest rates look a little higher, which can put some people off. In reality, the benefit of opting to receive a low rate for a longer period of time can give you the amount of time you need to repay your balances in full before you have to go back to paying higher rates again.

When searching for the best balance transfer credit card offer to suit your needs, be sure you’re choosing the right term to match how long it will take you to repay your debt.

Editors Choice: Featured Credit Card Deals

	Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Cash Advance Rate (p.a.)