Monthly Archives: December 2017

How To Determine The Right Credit Card to Transfer Your High Rate Balances To

Balance transfer card can solve your high interest credit card debt through the zero percent APR intro promotion. The zero percent APR intro promotion is the first few months where the balance is not charged with the APR interest rate. This means that you can transfer your credit card debt and pay it off without getting charged with any interest fee. The following are 3 tips on how to choose the right balance transfer card.

1. Length of the Zero Percent APR Intro Period

Firstly, you must find out how long the zero percent APR intro period last. The zero percent APR intro period can last from 6 months to 21 months. Cards with the longest 0% intro promo require a good or excellent credit score to qualify. However, even if you don’t have a good credit score, you will be able to easily get approved for a balance transfer card with a zero percent APR that lasts for more than 12 months. The intro period must last long enough for you to fully pay off the debt. You must calculate how much you can set aside each month and how long it will take you to fully repay it if you set aside that amount of money each month.

2. Balance Transfer Fees

Second, you must take into account the balance transfer fee that the card charges. The balance transfer fee is automatically charged onto the balance when you make a balance transfer. Although the fee is just in the range of 3%-5%, it could add up a significant amount to your balance. It will make it harder for you to pay back especially when you are now drowning in credit card debts. It will be best if you can find a card that waive the balance transfer fee. Many cards waive the balance transfer fee when you transfer the balance within a certain time frame, for example, 60 – 90 days. If the card you sign up did not waive the transfer fee, you must ask yourself if the savings is worthwhile than the transfer fees.

3. Find Out What Credit Card Issuers The Balance Transfer Card Accepts
Third, you must find out what issuers they accept for the balance transfer. Many balance transfer cards don’t allow you to transfer debt from a credit card that you apply from them. For example, if you apply for a balance transfer card issued by Capital One, you cannot transfer the balance of a Capital One credit card. You can also check with them what are the other types of debts that you can transfer such as personal loans, student loans, auto loans and utility bill. This allows you to consolidate all your unsecured debts in a single place conveniently.