Balance Transfer Precautions

Credit card debt has become a common problem among consumers. Paying off your debt with high interest rates can be a great problem. Luckily there are balance transfer deals that let you transfer a high rate balance into another one with lower rates. Consequently you can save a lot on interest and pay off your debt as soon as possible. Here are some tips for you to make the savings larger. Most balance transfer plastics offer zero interest rates. Still you should take into consideration that it is just a promotional period that is usually provided by credit card companies and lasts up to 12 months. Then the APR will be higher. So if you transfer your balance into a 0% APR plastic, try hard to pay off the balance during the intro period. If you feel that you are not able to pay off your debt before the end of the intro period, then look for the offer with moderate ongoing APR. For example you can give preference to a balance transfer offer that comes with 0% intro APR and 7.5% ongoing rate. So, it can be a rather profitable card. You should always make all payments on time and don't exceed your credit limit. If you don't follow the rules, your zero APR card will be canceled and you will need to pay default fees. Today practically all credit card companies charge a balance transfer fee. So before applying for a credit card pay attention to the terms and conditions. It can be a fixed fee as $30 or a percentage depending on the amount of money you transfer. So it depends on the situation which one is the most beneficial for you. Zero percent on balance transfers doesn't mean 0% on purchases. In spite of the fact that the card can come with zero interest rate on both purchases and balance transfers, these are rather the exceptions than the rule. So pay special attention to APR on purchases. If it's too high, apply for a cash back card that lets you save on purchases and be rewarded. If you carry debt, it doesn't mean that your credit card shouldn't be profitable. So don't be in a hurry and be careful in the choice of a credit card. Balance transfer credit cards have different features so compare all the options of the plastics. There is a great variety of rewards plastics: airline card deals, those with gas and hotel rewards. So choose the one that suits you most and take advantage of it. About the Author. If you want to get the best credit card and take advantage of it, you should know the details of the whole process of applying for a plastic. Valerie C. Cottrell devotes her articles to the process and the possible problems you may face. Financial directory