Credit Card Balance Transfer Cards

Credit card debt is one of the hardest financial burdens to overcome, but there are ways to pay down your debt and lower your fees and interest rate charges.  Balance transfer credit cards are one such way to consolidate your debt and pay off those high balances.  It will take some time and research on your part, but the end results will be worth the effort.

Balance transfer offers used to arrive frequently in the mailbox, but credit card companies are reducing the amount of offers they send because of the current interest rate increases.   Interest rate hikes are also responsible for higher fees and charges on your credit cards.  However, there are still companies trying to entice customers with lower or 0% credit card balance transfer interest rates for consumers who transfer their credit card balances to them.  Before you decide on one particular card to transfer your balance to, you should be aware of the terms, fees, and restrictions tied to that card.

Consumers looking to save money on fees and interest charges should research which company is offering the best deal.  A 0% or low APR on balance transfers is one thing you want in a card.  Another key item that saves you money are fixed APRs as opposed to variable interest APRs.  Fixed APRs will save you money because the rate is guaranteed for a determined amount of time, and is not affected by interest rate increases.  Variable interest rates are connected to the current or prime interest rate and will usually result in higher interest rates, which in turn costs you more money in finance charges.

  Banks and credit card issuers are in business to make money, and the increase in interest rates has led to record profits from fees and interest charges for these institutions.  To avoid being their cash cow, you must choose a card that has low fees and finance charges.  As a bonus, look for credit cards that offer rewards programs or cash back, so that you can earn rebates while paying off that balance transfer.

Once you decide on a credit card to transfer your balance to, there are some rules to follow.  Don’t respond to every offer you get or apply for several cards, because every inquiry into your credit goes on your file and will affect your credit score.  Multiple inquiries make you look desperate for money, and lenders are less likely to see you in a positive light.  Also, you may want to keep those old accounts open if you have a good record of paying on time as this shows you have a long credit relationship with that issuer.  Finally, don’t be tempted to spend money again now that you have lower rates.  Have a game plan to pay off your balance and stick to it.  In the end, the goal is to be debt free.