Three Insider Secrets To Finding The Best Balance Transfer Credit Card
Finding the best balance transfer credit card isn't always a cake walk. In fact, with so many different balance transfer credit cards on the market (all with their own gimmick) it can be kind of like looking for a dolphin in a sea of sharks.
Fortunately, finding the best balance transfer credit card doesn't have to be a treacherous swim. These three insider secrets will teach you exactly what to look for when it comes to balance transfer offers.
1. Why Introductory Rates Don't Always Matter
Those 0-percent balance transfer credit card offers can sure look tempting. The problem is, they aren't always everything they're cracked up to be.
Insiders know that the best balance transfer credit card isn't necessarily the one with the lowest introductory interest rate. In fact, unless you can pay your entire credit card balance off before the introductory period is over, a teaser rate shouldn't even be taken into consideration.
Why?
Let's say you're currently paying 16-percent interest on a balance of $5,000 and you find a 0-percent introductory balance transfer offer. Looks good, right?
But what happens if that introductory rate takes a hike up to 19.99 percent once the intro period is over and you still have $3,500 to pay off? Now you're going to be paying off the rest of that balance at a 19.99-percent interest rate -- which is higher than what you were paying to begin with.
If you want the best balance transfer credit card, the first thing you need to do is assess how long you think it's going to take you to pay off the entire balance. If the amount of time you need is longer than the introductory period offered, then you're going to want to opt for a fixed-interest credit card rather than one with a low introductory rate.
2. Analyze the Cost
Of course, interest rates aren't the only thing to consider when it comes to getting the best balance transfer credit card. You have to look at how much it's going to cost you to transfer your balance to the credit card in question.
When looking for the best balance transfer credit card, you need a card that charges a small transfer fee or, better yet, no fee at all. Many balance transfer credit cards charge a balance transfer fee. If the fee equates to more than what you'll save by transferring your balance, it's really not such a great deal.
In addition to balance transfer fees, you also need to consider annual fees. Some balance transfer credit cards charge annual fees of nearly $100. The best balance transfer credit card won't charge an annual fee at all.
3. Rewards Don't Always Pay
Believe it or not, the best balance transfer credit card probably won't have any rewards programs attached to it. Because rewards credit cards usually come with a higher interest rate attached, they don't usually make the best balance transfer credit cards.
If you're looking to find a balance transfer credit card that will allow you to pay off your debt quickly and with as little interest as possible, don't waste your time looking for rewards cards. Instead, look for credit cards that offer a fixed low-interest rate.
When it comes to finding the best balance transfer credit card, remember that while it may be tempting to jump on the band wagon and grab the next card that offers you a 0-percent introductory rate, that may not be the wisest decision. After all, the best balance transfer credit card won't just offer you a phenomenal interest rate for a few months, but will offer you a low interest rate over the life of the balance.
For more tips on balance transfer credit cards, saving money and avoiding getting taken, check out CreditCardTipsEtc.com, a website that specializes in providing credit card tips, advice and resources.
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