Pay off your debts faster
If you have a large balance on a credit card with high interests, transferring your debt to a credit card with lower interest can help you save money and simplify your financial life. Balance transfer credit cards have both advantages and pitfalls, so it is worth investing some of your time to look for the balance transfer offers and their specifics.
Balance transfer credit cards usually provide flexibility. The debt you want to transfer does not necessarily must be yours, so it is possible to arrange a balance transfer between the family members. Moreover, it does not always have be a credit card, other debts such as a personal loan or a car loan can sometimes be transferred as well.
How to choose balance transfer card
Many lenders offer credit cards with 0% balance transfer fee and 0% APR (annual percentage rate) for an introductory period, but before accepting the tempting offer fully examine its details as these favorable terms will not last forever. The 0% balance transfer fee after a couple of months bumps up to a 5%, and the APR rate is usually set for the period between 12 and 18 months, after which you may end up with even higher interests than you had before. So, pay attention to the contract details to ensure that this new credit card will pay off.
There are also several things that you should be careful about. Even if you get an approval for the card, the extra-low APR may not apply to you, sometimes it depends on the individual's credit score. You also cannot transfer your balance if your new card is issued by the same company as your old one.
Caution if you have bad credit score
In case you didn't make in time to pay off your debt during an introductory period, and consider transferring your balance again, think twice before actually doing it. Each time you open a new low-interest account and transfer your old debts, your credit score deteriorates because you demonstrate the incapability of settling your indebtedness.
Balance transfer credit cards can be a great solution of the accumulated debt when used with a smart approach and a proper diligence. View Mike Credit's selection of the best balance transfer credit cards designed to help you pay off your debt faster.