Consolidating credit cards debt with balance transfer credit card deals offer a solution to those consumers who find themselves overwhelmed with high interest credit card debt, paying month after month and still not making a dent in the actual balance of the credit cards. Balance transfer can offer a way out. Low interest balance transfer credit cards are a short-term solution for this problem which can actually bring about some long term financial help.
Understanding A Balance Transfer Credit Card
These are cards specifically designed to offer a low interest rate on balances transferred to them from other credit cards. The best balance transfer credit cards offer a low or often 0% APR for the first six months to one year on balances that are transferred to them. If you are paying a high interest rate on another card, such as a store credit card, then a balance transfer is definitely something you might want to consider. If you are a new user considering opening a first credit card, or you are looking for a lump sum credit card, then a low interest balance transfer credit card is probably not for you. You should consider some other types of card to fit your financial needs.
Things to Know Before You Apply
Before you apply for a balance transfer on credit cards read the fine print and make sure you know the specifics of the card. You should also make sure that there are no hidden fees associated with the card that you will have to pay that negate the benefit of the transfer balance credit cards. Also find out whether of not there is a cap on how much you can transfer or the number of card balances you can transfer to the new card. It is also helpful to be aware of your credit card score and to make sure that it is in good standing because many of the best balance transfer credit cards do not approve people whose credit is poor.
Considering Your Options
There are several types of offers that low interest balance transfer credit cards may make. Some of these cards offer an introductory 0% APR that only lasts for six months to one year. If you accept a card like this you will have to remember to find another card with a low interest rate at the end of that introductory period or you will again find yourself in the position of paying higher rates. Other cards offer a certain balance transfer percentage rate that is good for the life of the card. These are called fixed rate balance transfer credit cards. These cards might not offer a 0% APR, however the rates are usually quite low and you don’t have to worry about the rates going up ever.