Best Credit Card Balance Transfer

March 24th, 2011

The best credit card balance transfer offers should allow customers who are struggling to repay credit card balances to repay their debts much faster.

2.99% p.a. for 12 months

How to Find the Best Credit Card Balance Transfer

The object of these is to transfer the balances from your old high interest charging credit cards over to a credit card charging a much lower rate on the balances you bring over.

In most cases, you should find that the introductory rates offered on the best credit card balance transfer offers are significantly lower than the rates you’re being charged on your existing credit card balances.

This can be a great way to reduce your interest costs, which can also reduce the amount you pay in monthly repayments. As long as you’re careful to put your interest savings back towards paying off your credit card debt, you should find your balance reducing much quicker than you expect.

Things to Watch Out For with Balance Transfer Offers

While it’s true you can save plenty of money on the best credit card balance transfer offers, it’s also important to watch for a few important issues you might come across.

For example, if you’re receiving a great low rate on the balances you brought over from another credit card, then it’s important not to give in and pay for new purchases using this card.

You could find that the items you purchased are attracting a much higher interest rate than the amount charged on your balances. This could mean putting yourself back at square one, instead of getting ahead with repaying your debts.

It’s also important not to withdraw cash from your credit card. A cash advance is often charged at even higher rates than a purchase or balance transfer, so this could actually increase your debt levels over time. This is because your repayments will be allocated to your outstanding balances rather than the amount you withdrew in cash.

Another problem you should watch for is keeping up with your new minimum repayment amounts. While they might be reduced from what you were paying previously, it’s vitally important that you make your payments on time, every time.

If you miss a payment, or if you’re late on your payments, you could find that your bank rescinds it’s lovely low rate offer and begins charging you a higher rate of interest instead.

To truly benefit from the best credit card balance transfer offers, it’s important that you benefit from your low rate while you can. Pay more than the minimum payment each month and make sure it’s paid before the due date.

Don’t be tempted to pay for purchases using your balance transfer card and don’t use the cash advance option. If you’re really short of cash, use a different card to help you stay on top of your finances and really begin reducing that credit card debt once and for all.