Best Credit Card For Balance Transfers

So, you looking for the best credit card for balance transfers?  I'm glad you stopped by because there are a lot of things to know about how to get the best credit card for balance transfers without getting taken to the cleaners.

Basically the process of a balance transfer works like this.  When making a credit card balance transfer you are moving the balance or debt from one credit card to another credit card.  If you are not careful balance transfers from credit cards can get pretty expensive.  Before you do any credit card balance transfer there are some questions you need to ask yourself.

Finding the best credit card for balance transfers

Does the credit card balance transfer offer an introductory interest rate?

Make sure you understand the interest rates are getting with the new credit card.  Many credit card companies will offer introductory interest rates on balance transfers.  Basically, the introductory interest rate eliminates the monthly finance charge on your credit card balance transfer for a limited time.  This makes the cost of a transfer easier.

How long is the balance transfer introductory period?

Usually these kinds of transfers will last about six months.  The longer the introductory period the faster the payoff the balance, the more time you have before incurring a full finance charge on the credit card.

Do you know what the annual percentage rate is after the introductory rate expires?

You always want to find the lowest percentage rate credit card as possible.  If you know that the annual percentage rate is going to go all that's a good incentive to pay off the balance picture.  You need to make sure understand all the fine print with the introductory rate on the credit card.  Also note that there is a difference between the balance transfer APR, and future purchase APR.

Ask yourself if the introductory rate applies to both the balance transfer on the credit card or just the purchases on the credit card.

Many credit card companies charge one rate for the balance transfer, and a different interest rate for new purchases.  It is important that you know the difference between the two.  Usually, the balance transfer amount is fixed, and new purchases are at credit card rate.  You should also find out when you make payments how the payment is applied to your balance.  You need to know if your payment goes first to purchase balances or to the balance transfer balance.

Find out if you qualify for the introductory rate on the credit card balance transfer.

Just because the company is offering a 0% interest rate balance transfer on a credit card, does not mean that you will follow for it for that rate.  The rate that you qualify for is usually tied to your credit score and your credit history.  If you don't have the best credit or you have bad credit, you will end up paying a higher than expected credit card interest rate.

Do you know if the credit card has balance transfer fees?

Even if you get a 0% interest rate on a credit card balance transfer that does not mean you will not get charged a balance transfer fee.  Often, it is either a flat fee or a percentage.  Most cards charge three to 5% up to $100 for a credit card's transfer.  Sometimes the credit card company will waive the balance transfer fee but you need to know all the front.

What happens to my interest rate for late payments, or default payments?

Credit card companies are in the business to make money.  So, while you think you may have found the best credit card for balance transfers, you need to know what the default it is.  Quite often, as soon as you miss a payment or send any late payment, the bank will assess fees, and your interest rate can go from 0% up to 30% or more. Don't get into loans for people with bad credit.

Finding the best credit card for balance transfers is as simple as filling a few basics, and knowing the questions to ask.  Make sure you compare any companies and don't forget to ask for what it is that you want.