Transferring your existing credit card balance onto a low interest credit card can help save you money. Many credit card companies offer 0% on balance transfers to new customers and these periods can be a godsend if you have watched your monthly repayments steadily grow. Financial experts seem to be in two camps over balance transfers though. On one side of the fence are those that recommend transferring your balance whenever an interest-free period comes to an end. Other experts frown upon serial balance transferring and suggest that it may be harmful to your credit rating. While it is true that card companies are less likely to offer cards to those that repeatedly transfer balances, when the savings are taken into consideration, it may be worth the risk.
The hardest part of the whole balance transfer process has to be finding, applying and being accepted for a new credit card. Luckily the Internet has made things a lot easier and sped up the application stage no end. You can compare literally hundreds of cards online and even apply for them at their official websites. Financial experts make a point of saying that you must look carefully at your own finances before taking on any form of credit. Not only will this help you find the perfect card but an honest look at your situation will ensure that you can make repayments.
Transferring a balance couldn't be easier. Often you can transfer your balance onto your new low interest credit card when you apply. Often application forms have a section asking if you want to transfer an existing balance and ask for details. Credit card companies are eager for their customers to transfer their balances onto their cards in hope that they will make profit, on interest, once the free offer period ends. If you decide not to transfer a balance when you initially open a card account you will be given ample opportunity at a later date.
Balance transfer offers vary from card to card, some offering longer and shorter periods than others. At present the shortest 0% balance transfer period is around 5 months and the longest is around 15 months. Some cards give free periods until a specified date, such as January 2010. The cards with specified dates are designed to encourage customers to apply right away so that they can get the longest period possible. Cards that offer longer periods usually have higher APRs and aim to make these higher rates more attractive by extending their special offers.
Another thing that you should look out for when considering a balance transfer is any transfer fees that may be charged. Once again the cost of transferring a balance varies from card to card. Sometimes cards with longer interest free periods charge more than those with short periods. You will need to weigh up the benefits according to your personal requirements. On average the transfer fees are around 2.5% of the balance you wish to transfer. If you transfer ?1000 onto a card with a 2.5% balance transfer fee you pay ?25 pounds to do so; this fee will be put onto your card. There are some cards that have no fees attached for balance transfers but they are few and far between.
Once you have transferred your balance you can sit back and make repayments. Many financial experts recommend that you use the card for no other purpose other than transferring the balance onto and making repayments. This may not always be possible but, as a sensible card management strategy, it is worth sticking to as closely as you can.
The hardest part of the whole balance transfer process has to be finding, applying and being accepted for a new credit card. Luckily the Internet has made things a lot easier and sped up the application stage no end. You can compare literally hundreds of cards online and even apply for them at their official websites. Financial experts make a point of saying that you must look carefully at your own finances before taking on any form of credit. Not only will this help you find the perfect card but an honest look at your situation will ensure that you can make repayments.
Transferring a balance couldn't be easier. Often you can transfer your balance onto your new low interest credit card when you apply. Often application forms have a section asking if you want to transfer an existing balance and ask for details. Credit card companies are eager for their customers to transfer their balances onto their cards in hope that they will make profit, on interest, once the free offer period ends. If you decide not to transfer a balance when you initially open a card account you will be given ample opportunity at a later date.
Balance transfer offers vary from card to card, some offering longer and shorter periods than others. At present the shortest 0% balance transfer period is around 5 months and the longest is around 15 months. Some cards give free periods until a specified date, such as January 2010. The cards with specified dates are designed to encourage customers to apply right away so that they can get the longest period possible. Cards that offer longer periods usually have higher APRs and aim to make these higher rates more attractive by extending their special offers.
Another thing that you should look out for when considering a balance transfer is any transfer fees that may be charged. Once again the cost of transferring a balance varies from card to card. Sometimes cards with longer interest free periods charge more than those with short periods. You will need to weigh up the benefits according to your personal requirements. On average the transfer fees are around 2.5% of the balance you wish to transfer. If you transfer ?1000 onto a card with a 2.5% balance transfer fee you pay ?25 pounds to do so; this fee will be put onto your card. There are some cards that have no fees attached for balance transfers but they are few and far between.
Once you have transferred your balance you can sit back and make repayments. Many financial experts recommend that you use the card for no other purpose other than transferring the balance onto and making repayments. This may not always be possible but, as a sensible card management strategy, it is worth sticking to as closely as you can.
About the Author:
Michael Levy writes about financial matters for various websites. Read more about balance transfers and low interest credit cards here.
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