Balance Transfer Credit Cards

When used properly, balance transfer credit cards can be a terrific solution for getting out of a tough high-interest situation or credit card debt. 

Zero or low interest balance transfer cards have become popular because they can offer relief from high interest rates.   Has a health emergency, unexpected loss of income or other situation left you with big balances on your high-interest credit card?

If you not able to pay your entire credit card balance off each month, then you should seriously consider a balance transfer. With a balance transfer credit card, you can save on interest right away. Balance transfer credit cards can put you back in control by consolidating high-interest credit card balances onto one low interest rate card.

You’ll need a good to excellent credit score to qualify, but the savings of switching to a balance transfer credit card can be substantial. Qualify for a 0% interest balance transfer card and save right away. If you’re having trouble comparing from the list above, you can do a quick search of all balance transfer credit cards using the CompareCards.com online comparison tool.

Shopping for a low interest balance transfer card? Watch for rates, terms and introductory periods.

Balance transfer cards are available from all of the major card issuers; but, there are differences and when choosing the right one for your situation, you’ll want to pay attention to the fine print.

The two biggest considerations when choosing a new credit card for a balance transfer are to determine:

• How long is the introductory period?
• How much is the credit card issuer charging me to transfer a balance? 

The typical fee amount for balance transfers is 3% of the transfer amount. So, for example, if you are transferring $2,500 from another credit card, you would be charged $75 just to transfer the balance. If you are transferring $10,000, the amount would be $375. Only 1-2 banks offer a maximum or ceiling on balance transfer fees, typically $75. This is a nice feature of most Chase Credit Cards.

Some cards, such as Blue® from American Express, offers a low 4.99% fixed rate for the life of the balance.  And, if you are able to transfer all of your high interest balances to the low or zero interest your savings can be significant.

Many of the balance transfer credit cards offer zero percent APR for the first  6 to 12 months that you have the card. The regular APR is what you’ll pay when the introductory period is over. After the introductory period, the rate will increase and, when selecting one of the zero or low interest balance transfer cards, you’ll want to make note of what the regular interest rate will be. You can beat credit card companies at their own game by using the introductory period wisely and getting your balance under control before your introductory period is over.

For more information on topics related to balance transfer credit cards, please click below:

• Blog on phone scams regarding balance transfers
• Five credit card traps to avoid
• Credit card consolidation loans