This article tells you how to find the best credit cards for balance transfers on the market.
Balance transfer credit cards are great for moving balances from one card to another. The main reason to transfer balances is to move debt from a card with a higher interest rate to one with a lower interest rate. In this way, the consumer can save money because the finance charges will be lower or even go away. When looking for the best balance transfer credit cards, there are a number of things to consider.
When a person is looking for the best balance transfer credit cards, one of the first things they should think about is the Annual Percentage Rate (APR). Credit card companies want to get you to use their cards instead of those of other companies. Because of this, they often give introductory deals for balance transfers with lower interest rates. In many situations, this APR will even be 0%. Find the credit card with the lowest APR for transferring a balance, and then only use that card to transfer your balance. Do not use it to buy anything. This is what credit card companies want people to do so that they can charge interest on the things people buy with their cards.
Different cards have different lengths for the special introductory APR. The length of the loan is sometimes also based on the applicant's credit history. It's important to know how long this period lasts and to make plans to pay off the whole balance once the introductory period is over. The special introductory rate on the best balance transfer credit cards will stay in place for the life of the loan. In other words, the APR doesn't change until the whole loan is paid off. This is the best way to go for people who won't be able to pay off the balance during the introductory period.
When transferring a balance, most credit cards charge a fee. Most of the time, these fees are calculated as a percentage of the total amount of money being moved. Balance transfer fees are usually 3 percent of the amount being moved. Many balance transfer credit cards, on the other hand, don't charge these fees in the beginning. Customers should pick one of these balance transfer credit cards. If not, they might have to pay a lot in fees, which would cancel out the interest savings.
When you apply for some balance transfer credit cards, you have to start the balance transfer process at the same time. Still others let you move money from one card to another during the introductory period. The best credit cards for transferring a balance are the ones that give you more freedom. Consumers who know they won't need to transfer balances in the future may be happy with a credit card that only lets them do it when they apply.
Some balance transfer credit cards have limits on what kinds of balances can be moved. For example, some business credit cards' introductory rates can only be used for business costs. Before applying for a card, people should make sure they know what kinds of balances can be moved. This will help them make sure the card meets their needs.
A lot of credit cards that let you transfer a balance also have special rewards programmes. Before choosing a credit card, people should compare the programmes so they can pick the one with the rewards programme that works best for them. Also, some credit cards that let you transfer a balance don't count the money you transfer toward the points system used in rewards programmes. To get the most out of the card, consumers should look for balance transfer credit cards that count the transfers toward their rewards programmes.
