Everyone is looking for ways to save money and switching to a different credit card might be the answer. If this is something you have been considering, you could be wondering if it is hard to find low interest balance transfer credit cards. You will be happy to learn that the process is relatively simple.
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Now that the new credit card laws have been implemented, it is easier than ever to transfer from one credit card to another. This can save you time as well as money.
Should you choose the balance transfer option?
When faced with a mounting credit card debt, a balance transfer can look very appealing. Each day, you are probably receiving offers in the mail promising to do everything except change your tires in return for your credit card business. However, you should always read the fine print and fully understand what you are getting into when you choose this option.
Among the details you should review carefully are how long the initial terms will last. Most likely, you are transferring a balance to save money but if you are still carrying a huge balance when the promotion is over, you may wind up paying a lot more than expected.
Ideally, when you transfer a credit card balance from a high interest card to a lower one, your goal should be to pay off the initial debt at a lower rate. After an introductory offer is over, the interest rate typically increases to a normal amount so holding on to that debt increases the likelihood that you will still be making payments on it at the higher rate.
Since you will probably continue to make charges on the new credit card, your new debt will be added to the old, meaning you will be paying higher interest on a larger amount. It is easy to be caught in this trap when you do not pay your balance in full each month.
What other factors determine my ability to find a low interest credit card?
Another important thing to look at is your payment methods. For example, if you have been known to be late or miss a payment or two, this can quickly lead to your downfall because in some cases, this could violate the terms of the special offer and have you paying a higher interest rate earlier than you anticipated.
You should also be aware that the new credit card company would charge you a certain amount in exchange for the privilege to transfer your balance, which is usually around 3% of the total debt you are transferring. Before deciding on this option, be sure that it’s actually worth it for you.
If you are looking at the low interest balance transfer option in order to decrease the number of credit cards you use and pay your total debt with a lower rate, this can be a smart move. Just be sure to stick with your plan, pay the total amount as soon as possible, and use it as a stepping-stone to improving your financial performance.
How does the new credit card law make it easier to transfer balances on credit cards?
The new rules for credit card companies state that now a company must explain, in plain language, how much you can expect to pay each month based on your typical spending pattern and how long it will take you to get to a zero balance if you only pay the minimum amount every time. In this way, you can make a more educated decision on which card is right for you.
What is the best way to find low interest balance transfer credit cards?
Every credit card company has some form of low interest balance transfer credit card option. The trick may be to locate the one with not only the best credit card rates but also the best terms. It is important to find out how long the special promotion will last and what the penalty is for a credit card late payment.
One way to start is by collecting all those offers you receive each week that may have been previously categorized into your junk mail pile. Carefully sort through the information for a few that might seem beneficial for you and your unique situation. Then, call them up to see if they are willing to offer something better and don’t be afraid to haggle. After all, it’s your money and only you can make the most of it.
- Where can I find the best credit cards for balance transfers?
- Is there such thing as no fee balance transfer credit cards?
- When to Make a Balance Transfer
- How can I get the best credit card rates for balance transfers?
- If I don’t pay off my balance in full, how much will it cost me in interest?
- How do I consolidate credit card debt?
- What are low balance credit cards?