Once you realize the benefits of a balance transfer credit card – such as the ability to consolidate debt – there’s an important question to answer: which offer best suits your financial situation and future goals?
With hundreds of balance transfer credit cards to choose from, it’s not always easy to make a final decision. Fortunately, with these three details guiding you, it’s easier to make an efficient and timely selection.
1. Balance Transfer Fee
Unfortunately, it’s rare to find a balance transfer credit card that doesn’t charge a fee (if you do, consider it).
You can expect to pay between three and five percent of the amount you transfer. So, a $10,000 transfer will result in a fee between $300 and $500.
Depending on how much you’ll save on interest, it may be well worth it to pay the fee. However, that doesn’t mean you should choose the first offer you come across
By shopping around, you’re able to save yourself a few hundred dollars (or more) – and there’s nothing wrong with that.
2. Length of Introductory Interest Rate
One of the biggest benefits of a balance transfer credit card is the zero percent introductory rate. This typically lasts between 12 and 21 months, so again, you need to shop around for the best deal.
Once the introductory rate expires, you’ll find yourself paying interest on any balance you carry from month to month.
Let’s face it: some balance transfer credit card offers have a better reputation for being consumer friendly.
Pay close attention to the offers with the best reputation, as these are the ones that will make your life easier as you attempt to get your finances back on track.
Tip: you can learn more by reading online reviews.
Do you have any experience using a balance transfer credit card to eliminate debt? Did you make your decision based on the details above? Do you have any other tips to share?