Best Balance Transfer Credit Cards
The Best Balance Transfer Credit Cards Offer Debt Relief Solutions
The best balance transfer credit cards could save you big money if you currently maintain large outstanding balances on high interest credit cards. To obtain credit card debt relief you can take advantage of the low introductory rates or "teaser rates" offered periodically by the top credit card companies on new cards.
Low introductory interest rates often remain good for 3 to 6 months after you receive your new card, and they can range from 0% to 9%. The lower rates are of real benefit to anyone seeking solutions to credit card debt. Simply put, money can be saved by transferring the balance from the higher interest rate card to the so-called teaser credit card bearing a lower rate.
How To Use The Best Balance Transfer Credit Cards For Settling Credit Card DebtBe aware that many banks treat balance transfers as they would cash advances. As well, daily interest fees might be applied to the transfers, and these fees can quickly mount up without the benefit of an interest-free grace period. Thus, the costs associated with the transfer of a large balance can sometimes be quite high.
The best balance transfer credit cards will waive any transfer charges for balances transferred within the introductory or promotional period. Read the fine print when you apply for this type of credit card and avoid paying needless credit card balance transfer fees.
Always watch for the term "flat balance transfer," as it will cost you fees on all balance transfers, despite the size of the balance being transferred. You should know how much the transfers will cost you. If the fine print on the application lacks information about the transfer cost, you need to ask a representative of the bank or lending institution and find out if they are charging "flat balance transfer fees." If they are then, search for a different offer with a no transfer fee credit card.
Use the credit card company's grace period to your advantage. Transfer the outstanding balance on your high interest credit card to the balance transfer credit card before the payment due date indicated on your monthly bill. Most card companies offer grace periods from 25 to 30 days. After the indicated due date the company will charge interest on the balance outstanding. By transferring the balance before the due date, you will be able to avoid needless interest charges and save yourself some money.
Know, however, that some companies do not offer any grace period. If such is the case, you will be charged interest from the day you transfer a balance, or the day you charge an item. It is not advisable to apply for credit cards that do not offer a grace period. You would save money in the long run by looking for another card that does.
Once you transfer your balance to the low interest credit card, you will receive a bill indicating the payment due date. Be sure to always pay the bill before the due date. Never be late with your payments as penalties may apply, and your credit score will be negatively affected.
Also, pay more than the minimum payment due. Try to pay as much as you can safely afford. The minimum payment is the least amount you can pay and still keep your credit card and your credit score in good standing. By paying more than the minimum payment, you can start to reduce the principal.
Credit card companies love it when you opt to only make the minimum payment required. That's because the minimum payment often covers only the accrued interest for the payment period. The principal amount of your balance remains untouched; it stays the same as it was before you made your payment. This is the secret to how the card companies earn themselves such huge profits annually.
By making only the minimum payments, you retain the principal amount month after month. Each minimum payment you make is taken off the accrued interest, not the principal. The next month, you are charged the interest again, and you pay it again, and again the following months.
At such a rate, it will take years to pay off your credit card debt. You must break the debt cycle by either making payments significantly larger than the minimum required or by taking advantage of balance transfer on credit cards.
Summing UpThe best balance transfer credit cards are good when used in the short-term, but it's not a good plan to use one long-term. Always investigate your other options before playing the balance transfer game. You need to be knowledgeable and sure about what you are doing, and you need to be dead serious about paying off your debt. If not, you could end up in an even worse financial condition.
You can find the best balance transfer credit cards for your circumstance by searching the Internet. Start reducing your debt load today.
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