Balance Transfer Credit Cards

Working hard for your money is one thing, giving it away by paying high interest on your credit card balance? Completely different.

According to the Reserve Bank Australia, Australians pay some of the highest avoidable interest on credit card balances in the world. But why pay more? Choose to transfer today and get a new credit card with a lower interest rate or even an introductory offer. Compare some of the top balance transfer cards now and make a change you can see. Need more info? We’ve put together 4 questions anyone should ask themselves when choosing a balance transfer credit card.

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Choosing a Balance Transfer Credit Card

 

To help you, we have come up with 4 questions you should ask when choosing a balance transfer credit card.

1. Is it worth transferring my credit card balance?

Is transferring your credit card balance worthwhile?

It might sound like an obvious question. But, there are some instances where transferring your balance won’t benefit you.

For example, if you have a small balance or you expect to be able to repay your card balance in full in the near future, the fees you may incur with a new credit card might actually outweigh any savings you might make.

2. How long does the introductory interest rate deal run for?

When transferring a credit card balance, it is vital that you have a good idea of how long it will take you to repay the balance in full.

If you expect to pay the balance within 6 to 12 months, a short-term deal is likely to be better for you. You will pay a very low rate of interest on your borrowing for up to a year.

However, if it is going to take you longer to repay the balance, you may be better off with a ‘lifetime’ deal. This is where a credit card company offers you a competitive rate for the lifetime of the balance – however long it takes you to repay it.

3. Are there any fees?

Any savings you make in terms of a lower interest rate will be offset by any fees your new credit card provider will charge.

For example, if you will save $100 in interest by transferring your balance, but the new card has a $200 fee, it won’t be worth your while switching.

Make sure you take all fees into account when choosing a balance transfer credit card.

4. Are there any other benefits to switching?

As well as a low interest rate, there may be other benefits to changing your credit card provider. These may include:

• Credit card rewards – You may get rewards for any spending on your card

• Better service – You may benefit from better telephone or internet banking

• Insurances – Many credit cards now include complimentary travel insurance or purchase protection. As well as saving money, you may also be able to take advantage of these additional insurance products

Don’t forget that selecting the right credit card will make your money go further. You work bloody hard for your money.

Don’t let the banks take more than they have to – start searching for a better deal with a Credit Card decent balance transfer offer.

 

More On Balance Transfer Credit Cards

Many times you will find that if you have outstanding debts to pay off on your credit cards, you're not sure how to consolidate them onto one credit card for the best payment procedures. There is actually a very specific factor that plays a part in determining how easy it is to pay off outstanding debts, and that is the aspect of balance transfers. When seeking out balance transfer credit cards, you should look not only at the fees associated with balance transfers, but also with interest rates and APR, which are fees that will play a part in determining how well you can pay off all your debts - and how much money you'll save.

Balance transfer credit cards are designed for people who have debt problems, especially. When you have a lot of outstanding credit card debts that need to be taken care of, it's a good idea to find balance transfer credit cards as they will assist in the problem of paying off your debts all on one card rather than having several different ones which you must pay off separately. Balance transfer cards also tend to have lower interest rates in many cases, as they will assume you'll have to pay off your debts over a period of months which will accumulate interest charges as time goes on.

While it's important to seek out balance transfer credit cards when you have many card debts to pay off, interest rates and APR also play a part in determining how much money you'll save. For example, if you have a card with low interest rates but high APR%, you'll have to pay higher annual fees than you would for a card that had 0% APR or very low APR. While balance transfer credit cards typically take this factor into account, they don't always have low APR, or the advertised APR only carries through the introductory period. It's a good idea to see what your ultimate annual fees will be when you sign up for any balance transfer credit cards.

Remember that in seeking out balance transfer credit cards, you should be careful to find all the above factors, but also make sure good security measures are in place. These days when it comes to credit card security, you can never be too careful. Credit card theft and protection is more important than ever, especially if you use your card online at several different shopping areas. Make sure that you are careful to protect your card with good security measures from any company you sign up for.

Ultimately, when you sign up for balance transfer credit cards, you'll be making an important decision that will likely make your debt payment problem much easier. Be sure to take your time in finding the right card with low interest rates and low APR so your debt payments can be made smoothly and without lots of extra fees tacked on. As time goes by, you'll soon find your debt worries easing away if you've selected the right plan.