Do Balance Transfer Credit Cards Really Save You Money?

Balance transfer credit cards can appear to be an excellent way to save money because you get the opportunity to choose a low introductory interest rate. In fact this has become a popular way for many individuals to save money on the interest they are paying on their credit cards.

Balance transfer credit cards can appear to be an excellent way to save money because you get the opportunity to choose a low introductory interest rate. In fact this has become a popular way for many individuals to save money on the interest they are paying on their credit cards.

A credit card balance transfer is when you move the current balance of one credit card to another card that offers a lower rate of interest. In most cases the old credit card account is then closed after the balance transfer takes place. There are some people who do decide to keep the old card open and active in case they need it at a later date.

Is a balance transfer offer something that can be of use to you? It depends on your current credit card situation. If you are presently paying a high interest rate on the credit card you have then you may find switching your balance to a lower interest card to be helpful to you. It could make it possible for you to manage the debt you have on your credit card much easier because it will reduce your interest repayments. By so doing this may allow you the opportunity to pay your balance off a lot faster.

If you are currently managing a balance that has been ongoing for a while then transferring your balance to a new credit card may offer a simple way to save you money. It could work because you would be paying a lower rate of interest over a fixed interval of time.
You must understand how balance transfer credit cards work in order to determine if you are a good candidate for one. It is a good idea to research your options when it comes to balance transfer credit cards in order to know what is out there. Only after you have become informed can you decide for yourself if a balance transfer credit card can save you money or if it is just one big hassle.

If you do decide to look for a balance transfer credit card then you need to keep three things in mind. First of all, you need to be aware of the interest rate for the balance transfer. Secondly, you need to know the length of the term that the introductory interest rate will apply for. Thirdly, you need to know what the ongoing purchase rate is.
That is why you need to look at a selection of balance transfer cards to determine which one is best. Please note that the most competitive offer you find is the one that will offer you the best of these three elements.

If you are thinking that a balance transfer would work well for you then do not just look at the balance transfer rate. Many people can get so excited about this that they do not consider the introductory term which is every bit as significant to their decision. The longer the term that you are offered, the more interest you have the ability to save. Bear that in mind.

If you do decide to transfer the balance of your credit card onto a new card it is essential that you still make your minimum monthly payment to your old card. The reason for this is because balance transfers sometimes take a number of weeks to go through. You don’t want to be charged a late fee (or something worse!) in the meantime.