In an effort to lure consumers to their credit card, many companies
offer free balance transfers from your old credit card. Once the money
is safely owed to the new company, they will often provide a grace
period where they charge far less on the transferred balance. Finding
two, one, or even zero percent interest is possible. Oftentimes this
introductory rate lasts for around six months to a year after the
balance transfer takes place.For a smart consumer, Balance Transfer Credit Cards can be an
excellent method of reducing credit card debt. It leaves the person free
to pay down the balance on a credit card without incurring interest
charges. Using this strategy, a person could potentially open a new
account that offers a balance transfer when the old one expires. Then
transfer all of the balance to the new card to begin a new grace period
of low or non-existent finance charges. If you plan to do a balance
transfer, be sure to close your old account immediately; having more
than two credit card accounts open may damage credit scores.
Making a balance transfer work for you is an excellent practice, but
diligence is required. Sometimes there is fine print attached with
hidden charges. Some banks may charge a transfer fee that can be a
percentage of the balance transferred. Be sure that there is a cap on
the amount, like fifty or seventy-five dollars, or else a balance
transfer in the thousands may end up costing a couple hundred dollars.
Also, be sure the bank doesn't charge a high annual fee, or joining fee.
There are a
number of companies who balance
transfer credit cards. Remember it is well
worth shopping around for the best balance transfer
credit card deals.
