Hawaii Credit Card- Questions to Ask About a Balance Transfer

By: EconomyWatch Content Team   Date: 27 January 2010

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If you decide to do a balance transfer from one Hawaii credit card to another then there are questions you need to ask yourself first. If a balance transfer is not done correctly it can end up costing you money as opposed to saving you money. It is also essential that you make sure that you are transferring to a card that really does charge a lower interest rate. Before you go ahead and sign on the dotted line for a balance transfer card you need to ask yourself some pertinent questions.

Does the card offer an introductory interest rate?

A Hawaii credit card that is worth it to you is one that offers a low or a zero percent introductory interest rate to do the balance transfer. This rate will help to reduce or get rid of the finance charges that appear monthly on your statements. The lack of a finance charge should make it so much easier to pay off your outstanding balance.

How long a period of time is the introductory offer good for?

In most cases it will last anywhere from six months to one year. However some only last for three months. The longer the introductory period is the better because it will give you more time to pay off the balance.

What annual percentage rate (APR) will you be charged following the introductory period?

Do not agree to a balance transfer to another Hawaii credit card until you know the answer to this question! The lower the annual percentage rate is once the introductory period has come to an end, the better it is for you. The knowledge that the APR will go up after the introductory period is over should help to motivate you to pay off your balance as soon as you can. Be aware that a balance transfer APR is generally different from the purchases APR. Find out what the difference is.

Does the introductory rate apply to just the balance transfer or to purchases on the card (or to both)?

As previously mentioned there are plenty of credit cards that have one interest rate for a balance that is transferred and another for spending. There are also some cards that charge a separate APR for cash advances. If you happen upon a Hawaii credit card that has different interest rates for different aspects of the card then you need to find out which ones are connected to the introductory rate and which ones follow the regular rate.


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