5 Tips to A Sucessful Credit Card Balance TransferA balance transfer can save a lot of interest and become debt free faster by transferring a high interest balance to a card with low rate. It can be beneficial if done properly. Tip One: Check the Time Limit Offer Many companies, such as banks, offer credit card blance transfer. But those offer may only last for 6 or 9 months on the low rate, then revert to a normal high interest rate. Contact the providers to understand the interest rate and fees to see if you will save interest.
Tip Two: Understand the Zero or Low Interest Rate Many credit card providers offer a zero rate or extremely low rate on balance transfer. You should figure out whether these low rates applie to it only. It means that any new purchases could be charged on standard rate if they are unable to be paid in full. If you simply never use the card for new purchase, it is a smart way to lower the cost of your outstanding debt. Tip Three:Shop Around the Best Deal You should always make sure you are getting the best and most suitable cards to help you reduce the credit card balance.
Tip Four:Destroy the Old and New Card The purpose of the transfer is to get rid of debt faster. If there is no physical card on the old and new account, you won't be tempted to use it for purchase again.
Tip Five: Beware of Fees Many cards charge a certain percentage when you transfer balance from another card. It is usually around 3% with a cap of $25 or $50. You need to beware of cards with uncapped fee. If you transfer $5000, you will pay $150 fee for it. You should compare the total interest to be saved with the fee as these fees could wipe out any possible savings.
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