0 Balance Transfer Credit Card
Choosing a balance transfer credit card
The great thing about credit cards are the fact that the balance can be transferred between cards. Many credit card companies offer a 0% balance transfer rate as an incentive to switch. A balance transfer credit card is a great way of reducing your debt and save money. If you have several credit cards you may be able to you may be able to switch to one balance transfer card, enabling you to keep on top of your payments.
What to look out for
It’s worth bearing in mind that the majority of credit cards now charge a balance transfer fee, this is a percentage of the amount of debt you need to transfer to the card. The fee the credit card company charges can range from 2.5% to 3%. However, if you’re currently paying 18% APR then this balance transfer rate will save you money especially if you opt for a 0% balance transfer.
There are many credit card companies who offer consumers 0% interest on balance transfers for a period of between 3 months and 12 months. However, the standard credit card rate can vary, so check this before you apply. Once the introductory rate has ended the credit card provider will charge their standard APR on any balance transfers.
Tips for choosing the right card
If you have several credit cards or store cards, the main benefit of switching all your debts to one balance transfer creditcard is that it’s easier to keep on top of your payments. Generally if you have a good credit score then you should be able to get a better deal.
By having a credit card and using it responsibly you will establish a good credit history for future finance such as a mortgage or bank loans.