A Card With A Low Interest Rate AND 0% Balance Transfers Is A Great Deal

Category: Finance, Credit.

Have you got an outstanding balance on a credit card that s draining your monthly spending money with high interest rates?

Over the past few years, balance transfer credit cards have become one of the most popular types of credit card in the UK. You re not alone. Many people have found that they can save big money by transferring the carried balance from a high interest credit card to one that offers low or no interest on balance transfers from other cards. Trade in the 14% interest that you re paying for 0% interest for 9 months- who wouldn t jump at the bargain? Sounds like a great deal, doesn t it? Before you dive for the first balance transfer credit card you re offered, take a few, though tips from finance experts.

To combat those, they ve come up with different structures for their balance transfer credit cards. Credit card companies are becoming increasingly wary of credit card jumpers- those who shift their balance from card to card when the interest free period is up. Be sure to read all the fine print of your credit card agreement carefully so that you know exactly what you re getting when you transfer. In fact, when you compare balance transfer credit cards, there are several things you should be looking at. When you have a choice of several balance transfer cards that offer 0% interest for the same length of time, look to other terms to help you choose between them. Interest rates on balance transfers are usually 0% for an introductory period.

Length of time for the introductory rate is generally six months, though you may still find a few nine month rate cards around. After the introductory period is over, other terms will apply. The extra three months could be enough to give you time to pay the entire balance at no interest. They vary from one credit card to the next, Interest rates on other purchases will be important if you intend to use your credit card for more than balance transfers. Fees for balance transfers are one time charges by the credit card companies involved for doing the paperwork associated with your balance transfer. A card with a low interest rate AND 0% balance transfers is a great deal.

Terms of the balance transfer vary between balance transfer credit cards. Typical APR after introductory period is what you ll end up paying in interest if you don t pay off the entire balance within the introductory period. Be sure you read all the terms and conditions carefully. Compare balance transfer credit cards at a comparison website and you ll find information on dozens of credit card offers. Many cards will charge you interest for the full introductory period if you don t pay it off within the introductory period. When you have the right information, you ll find it easy to choose the best balance transfer credit card for you. Be sure that the interest you save by switching cards will be greater than the cost of doing so.

Whatever choice you make, be sure to count in all the associated fees and charges before deciding to transfer your outstanding balances to a 0% balance transfer credit card.

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