How to Compare Balance Transfer Card Offers

The term 'outstanding balance' refers to the amount you have charged to your credit card which you have yet to pay for. As credit card interests are high, one of the ways to avoid paying for these high interests is to transfer your credits to a balance transfer credit card which offers a 0% introductory APR. This allows the user to transfer the balance over to the new card and save on the interest rates or even to acquire a cash advance to clear off all outstanding debt within the 0% APR period. However, when making a comparison on the right balance transfer card, it's best to evaluate the following elements before making a decision.

0% Annual Percentage Rate (APR)

A 0% Annual Percentage Rate means that you are not charged any interest on your credit card balance for a limited period. 0% APR cards are best used for consumers with huge debt amounts that they want to clear within a certain timeframe. For instance, if they expect to clear their outstanding balances within the next 9 months, they should definitely opt for a balance transfer card with a 0% APR for a minimum period of 9 months. However, they need to be disciplined in carrying out their plan as these cards hike up their interest rates within the blink of an eye once the 0% APR introductory period finishes.

Credit history check

Certain balance transfer cards require applicants to possess a good credit history before their applications can be approved. These cards best suit disciplined card users who intend to reduce the interest rates of their outstanding balances. Being money-smart consumers, they are not in the habit of utilizing balance transfer cards to consolidate their debt, but rather to exploit other attractive credit card perks that these cards may offer.

Cash advance

Another way to clear debt is to obtain a cash advance on your balance transfer card. However, you may want to keep in mind that the amount is usually inadequate for you to clear all of your standing balance at one go. Plus, there is a chargeable fee which is usually about 3% on top of the amount of money you transfer out of your account. Nevertheless, this rate may vary according to the market forces that drive the credit card industry.

Adam Goldman recommends Find Credit Cards to compare balance transfer card offers.

Balance Transfers Credit Card "Primer"

Credit card features are composed of the APR (annual percentage rates), balance transfer fees, interest rates, late fees, and so forth. The APR is a primary feature to reflect on while searching for balance transfer cards. Credit card companies are competitors; therefore, the companies will strive to offer special deals on credit cards. Some of the deals include 0% introductory rates and low interest rates, particularly for balance transfers. In your search for the best balance transfer credit cards, be sure to take maximize the advantage of the offer by using the card strictly for balance transfers. If you use the cards to make purchases, please keep in mind that the credit card issuers profit from the corresponding financial charges that you might incur while using this type of card.

Introductory Periods

For a few of the balance transfer cards, lenders will add zero percentage introductory rates for up to 15 months. Some credit card lenders will determine the zero introductory rates from your credit rating. If you have six months, one year, or 15 months of 0% on your balance transfers be sure to pay off the debts before the date expires.

Balance Transfer Fees

Balance transfer fees consist of a percentage of the full amount that is financed and transferred to the card. The fees typically average around 3 percent of the amount transferred. The purpose of comparing cards is primarily due to the fact that some credit card lenders will essentially surrender the normal fees during the introductory trial.

Transferring the Balance on Credit Card Dates

Very few of the available balance transfer credit card offers will not require a transfer fee. The balance transfer credit cards that provide the most benefits are those cards that enable you to complete balance transfers during the entire introductory period. The cards that require you to start balance transferring upon receipt of the card do not allow the flexibility that the latter card allows. Be sure to read the terms and conditions, since you can look for clauses, stipulations and/or restrictions on balance transfers. The most important thing to consider is understanding, the types of balances transferable, before accepting the card.

The balance transfer credit cards nowadays have select programs that offer rewards. Comparing the cards will help you find the better cards that suit your needs. Look through the clauses when considering rewards balance transfer cards, since some card lenders will not apply the points to the balances transferred. Still, this could be the better choice!

For more information on balance transfer credit card basics, Bert Wills recommends that you visit CreditCardAssist.com.

5 Tips for Choosing the Best Balance Transfer Credit Card

If you have a number of credit cards and you'd like to consolidate your payments, a balance transfer credit card can be the right decision for your finances. Not only are many balance transfer credit card companies offering lowered or even zero percent interest rates, but you might even be able to finally pay down that debt that you've accrued.

1. Determine the amount you want to transfer

While most balance transfer credit card companies are willing to transfer larger balances for those with a good payment history, for those that do not have excellent credit, you might find that only small amounts will be transferred. And while this helps, it might not reap the rewards that you were expecting. Talk with the balance transfer credit card before deciding to sign up for their card to be sure that the amount you want to transfer will be allowed.

2. Find out the restrictions

Most of the time a balance transfer credit card company will allow you to enjoy a low or zero percent interest rate when you follow their rules. This means that you should work to understand their rules before signing up. You might not be able to purchase anything on the card for a certain amount of time, or you might have to purchase something within a certain amount of time.

3. What is your time limit?

While it would be nice if balance transfer credit card companies could give consumers unlimited time to enjoy the lower interest rates, this isn't the case. Find out how long the introductory balance transfer credit card interest rate is good for--the longer the better.

4. Can you get money back?

Some balance transfer credit card companies also offer you money back for new purchases on their card. While you probably won't get that cash back on the transfer, you can begin to reap rewards for future use. If you think that you may keep the balance transfer credit card for a while, this is a good thing to investigate.

5. What is the annual fee?

When you're trying to limit your payments, you'll want to be sure that the balance transfer credit card doesn't start off with an annual fee as well. Many balance transfer credit card companies do not make a customer pay a fee initially, but some might charge the customer after the initial time period is over.

A balance transfer credit card can help you reduce your monthly payments and get you on the road to a debt-free life, but only if the card is working for you and not against you.

Beth Derkowitz recommends Find Credit Cards for finding the best balance transfer credit card for you