How to use a credit card balance transfer to suits some of your needs and save some money.
As another way to get your business, many card issuers offer balance
transfers. This can give you some leverage as a consumer and a
opportunity to save some interest. Most credit cards offer a 0% APR for
6 to 12 months with no transfer fees. This is sometimes referred to as
the teaser rate.
A balance transfer can be a good way for a you to consolidate debt. You
can take your outstanding balance on one or two or more cards and
transfer it to a card with a lower rate. Once approved, you would have
all your payables on one credit card and essentially had taken two or
more interest rates and transformed them into one lower rate.
If you want to carry on a balance, look for the credit card that offers
the best interest rate or the annual fee offer. However, if you intend
to pay for the credit every month, then look on the one that offers the
lowest interest rate. Take note of the new rate after the introductory
offer is over. Is it going to higher than what your have now? Are there
any other fees involved? Make sure. Also does the introductory offer
apply to balance transfers and purchases?
You can choose the credit card that offers the lowest annual percentage
rate (APR). APR's could either be a "fixed" or a "variable" rate. Fixed
rates do not change as the name implies but is higher. Variable rates
changes depending on the economic trends. I usually avoid anything
that's variable but you should explore your own options carefully. This
is to be taken into consideration if you're deciding on carrying a
balance and for how long.
Other factors involved in your decision for a balance transfer might be
the rewards (reward points)or cash back a card offers. You may want to
look into something you purchase often, like airline miles or gas
rebates if you drive more than usual. Other cards even offer cash back
for paying home utilities and mortgage, like the Citi® Home Rebate
Platinum Select® MasterCard®. There is much competition for your money
and if you take time to explore your options, you can turn some
disadvantages on your present credit card balance back your way.
