There is no mistaking that the economy is slowing and money is getting tighter. Many people are looking for ways to lower their monthly expenses. And of course one way of helping with this is with a low interest credit card balance transfer. This can help several different situations. We will discuss how they can help you and what to be on the look out for.
Let’s check out the types of offers that you will see and what to look for in the fine print.
Teaser rates.
As the name implies these rates tease you to get you on board. Make sure that you know how long these low interest credit card rates last and what the rates will be after your balance transfer is complete. If you are doing a balance transfer to catch up or to try to pay a credit card off, make sure that you can make it happen before the rates change. You will see zero and low interest rates that last from around 3 months up to a year.
Your credit rating will probably have to be good to take advantage of these low interest credit card balance transfers. And if you are late with a payment, there may be a very stiff penalty. You can go from zero percent to 30 percent in a hurry with some of these promotional offers.
New-purchase promos
If you transfer your balance to a low interest credit card, some companies will give you an interest free or very low rate on new purchases. Interest free for a year is not that uncommon. This may be good if you need to make a major purchase, and you want to pay it off before the interest rates kick in.
If you make the decision to transfer your balance to a low interest rate credit card make sure that you know all of the terms and conditions and that you read the fine print. Here are some things that you need to be aware of:
Transfer or transaction fees.
I have seen fees in the 3 to 5 percent range. And it is normally added to your balance as soon as you make the transfer.
Time to transfer balances.
It could take up to 4 weeks to make the transfer. Do not miss any payments on your existing credit card balance. And when the balance does transfer to the lower interst rate credit card, you have a decision to make. Will you keep your old credit card? If there is any chance that it will get you into trouble you may want to consider cancelling it. But will the new credit card be a good card after the initial low interest rate is over?
Do you qualify for the lowest advertised interest rate?
A lot of low interest rate balance transfer offers do not apply to everyone. They may just be for people with a good credit rating, and you may qualify for an offer that is not quite as attractive. They may offer a zero transfer rate and then when they see your history and rating they may only offer you a 10.99 percent offer. Not quite as nice, is it?
What next?
OK, lets assume that you checked the fine print, compared all of the offers and found the best low interest credit card balance transfer offer. What should you do next?
Do not waste the opportunity. Your monthly bills should be a lot lower. Make the extra money work for you. The best plan, depending upon your situation, would be to pay the credit card off. Zero debt is the best debt.
Credit cards should be used for online purchases, to keep you from carrying too much cash, and for emergencies. If you do not have control, you should not carry credit cards. They have ruined a lot of financial lives in the wrong hands. If you are just starting to see a problem, and you go the low interest credit card balance transfer route, take advantage of the situation to get yourself out of trouble, and to stay out of trouble!