What is a balance transfer?
When you use a balance transfer credit card, you are essentially paying off credit card “A” with new credit card “B”. It lets you save money and helps you simplify your financial life.
How do you find the best balance transfer deals?
The first thing you need to keep in mind is that you may not qualify if your credit isn’t up to standard. The best terms are available only to those with good or excellent credit.
Balance transfer deals can reduce the interest you pay on your total credit card debt, effectively lowering your monthly payments and saving you money on finance charges.
You can also transfer other debts, not just credit cards.
Keep in mind that you will be charged a balance transfer fee, which is determined as a percentage of the total amount you’re transferring. You need to take this into account when you are working out whether you’ll be able to afford to make repayments or not.
Most credit cards offering interest-free periods may have periods lasting up to 6 months. In some instances you may get interest-free periods of up to 18 months.
You need to be clear about how the best balance transfer deals work. Finding the best balance transfer deals can reduce the interest you pay on your total credit card debt, effectively lowering your monthly payments and saving you money on finance charges. When you are comparing balance transfer credit cards you need to consider the amount of money you are planning to transfer. You need to consider the fees that are charged to you when transferring balances from one card to another.
Some cards specify that only transferred balances qualify for the lower rate, while new purchases collect interest at the regular rate.