What is the best credit card for balance transfers?
The above question is one of the most frequently asked questions to this site. Of course the answer is simple, a 0% balance transfer credit card that has no balance transfer fee. However of course it is not that simple. In the past you could get one of these a lot more easily. These days there may only be one or two offers such as this on the market at any one time. Likewise there used to be companies offering no fee balance transfers and also with a 0% interst rate on new purchases. If you look around the market now you will find these rather difficult to come across.
Due to these factors here are a few tips to consider when trying to weigh up whether a 0 balance transfer is more advantageous for you versus a credit card offering 0% on balance tansfers and purchases.
If you plabn on having a credit card balance continually from month tomontha no fee balance transfer may not be the wsiest option because the nomal fee for balance transfers is 3% upt an approximate $80 maximum. So if you have a a balance of $2000 on a card at an interest rate of 14% over the course of the year you will gain over $300 in interest. So if you know that you are likely to be using your credit card for things othe than transfers steer clear of the no fee offers and apply for a credit cardofeering you 0% APR on everything.
Consider the future! Clearly 0% APR balance transfers don't go on eternally so look for a 0 balance transfer credit card that has a long introductory period and a low APR. This is helpful in the event that you are unable to transfe you balance again in the future due to reasons such as loss of job and so on.
Of course you must also make sure you read all the fine print. It is easy to get caught out beaing in mind how lengthy and unwieldy many of the credit agreements are. Choosing a credit card balance transfer company is not the easiest thing in the world so take time to look at your spending patterns and plans for the future when selecting you card, this can save you a great deal of money in the future.
A quick example on how easily credit can add up: the average credit card user loses about $140 per $1000 that is on their credit card. Therefore if you have $6000 on credit cards you would be paying more than $800 per year! That of course could have been spent on holidays, new clothes and so on. If you have $10,000 on cards then you would be paying well over $1400 on interest alone, enough fo a mortgage payment a considerable amount indeed. So in short shop around and try and use any money save on 0 balance transfer cedit cards on paying off the balance.