Many people with credit card debts have used balance transfer credit cards to reduce the amount they pay back every month so that they can repay back the entire amount they owe to their credit card companies faster. This method only makes sense if the balance transfer credit card offers 0% introductory period for a period of time that you are sure you can repay back the entire amount you owe on your original credit card.
With the 0% introductory period, you only pay the principal amount that you owe on your credit card without the interest fee charges. This can help you to save thousands of dollars in interest if you are able to pay off the entire debt within the interest free introductory period. There are a few balance transfer credit cards that offers a 0% interest free introductory period for 12 – 21 months.
It is easier to pay only the minimum amount but this method will eventually cost you more money by the time you finish paying it. Most credit card companies will charge you a fee when you try to settle your credit card debt early so transferring your balance to a zero interest balance transfer credit card is the best option.
You also have to take into account the balance transfer fee, which is charged when you transfer the balance from your original credit card to the balance transfer credit card. The typical balance transfer fee that is charged by a balance transfer card is 3% – 5%. Many cards offer promotions that waive the balance transfer fee if you transfer the balance within the first 60 days or so.
You should try to find a card that offers an interest free introductory period for the longest time and don’t have any fees such as balance transfer fee, annual fee and penalty APR. In this way, you will be able to save as much money as possible. If you have a good credit score, you can easily qualify for zero interest balance transfer credit card. People with average credit scores may also qualify but they won’t get the best terms.
The best way to find a balance transfer credit card is to use an online credit card comparison tool. You will have to provide the new credit card company with the details of your credit card debts and they will transfer the debts onto the new card. You should only be using the balance transfer card to pay back your credit card debt and not use it for doing your shopping. Normally, the balance transfer card charges high interest rate when you use it for your purchases. It can result in you taking longer than the 0% period repay back the balance if you use the card for your purchases.