If you're interested in finding the best balance transfer credit cards for your financial needs, these four tips will help you do just that.
1. Don't Judge a Card By It's Initial Interest Rate
If you're looking for the best balance transfer credit cards available, you are most likely carrying a balance on your current credit card accounts. Because of this, the interest rate of the credit cards you're interested in should be factor number one in your balance transfer decision.
Many consumers make the mistake of jumping at balance transfer credit cards that offer low introductory rates without really considering what those rates will be going up to once the introductory period is over. Don't follow in their footsteps.
When deciding which companies offer the best balance transfer credit cards, look at the long-term interest rates, not just the introductory rates. A 0-percent rate that only lasts six months and then jumps up to 19 or 20 percent isn't really a good balance transfer credit card. The best balance transfer credit cards will have an interest rate that stays low when the introductory period is over.
2. Interest Rates Aren't Set In Stone
When dealing with credit cards, you have to understand that interest rates aren't set in stone. They can (and will) go up if you default on your credit card agreement in any way. Make a late payment or go over your credit limit and that low interest rate can really take a hike.
Even the best balance transfer credit cards will up your interest rate if you make a late payment or abuse your account priviledges in any other way. To make matters worse, if you pay any of your credit card statements late all of your credit card companies can up your interest rate. This ugly credit card phenomena is referred to as the Universal Default Agreement.
Remember, when you finally get yourself set up with the best balance transfer credit cards you can find, make sure you do your part to keep the favorable terms you've been presented with.
3. They're Not a License To Pay Less
So you transfer your credit card balances to the best balance transfer credit cards and suddenly you realize that your minimum monthly payments have gone down. Don't get too excited. It doesn't mean you should pay less each month than you have been.
When you transfer your credit card balances to a lower-interest credit card, your minimum monthly payment will go down because you're paying less towards interest. What this means is that you're going to get your balances paid off faster because more money is going to be going towards the actual balance each month (especially if you pay the same amount you had been on the higher-interest card).
Do yourself a favor and pay as much as you possibly can towards your credit cards each month, even if you do have the best balance transfer credit cards out there. When you pay them off faster (saving hundreds or even thousands of dollars in interest charges), you'll thank yourself.
4. The Best Balance Transfer Credit Cards Aren't Used For Purchases
When you transfer your existing credit card balances to a credit card with a lower interest rate, don't be tempted to charge more. The purpose of getting the best balance transfer credit cards is to pay your debt off faster -- not to accumulate more debt in the process.
As tempting as it may be to buy that new laptop at 0 percent interest for six months, don't do it. Wait until your current balances are paid off and then consider making the big purchase.
By following these four credit card tips you'll be able to find (and manage) the best balance transfer credit cards on the market, enabling yourself to get out of debt faster and for less money.
All of these card companies know that many people in today's society are very naive and accepting of credit card advertisements that seem too good to be true, which they really are. The marketing teams of the card companies create credit card ads that are very appealing and attractive to the eyes of people who do not know any better. A few of the following simple pointers should help prevent people from becoming victims to ads that would normally cause many unfortunate problems.
Unseen Information
People must beware of the tiny print of these credit card offers. Obviously, all the incentives, low rates, and attractive aspects of the offer are printed in a large format, whereas the extremely high rates, catches, and real information is printed in a very tiny format in order to hide them from careless customers. A person must remember to read the fine print and acquire the necessary offer details in order to prevent them from becoming trapped by the cards.
Loaded Rates
Sometimes card companies try to trap people by offering very low initial rates. What people don't understand is that the rates only last anywhere from a few days to a few weeks. After this initial time period is over, the card rates dramatically increase and customers find themselves financially trapped.
Incentives And Rewards
If a credit card ad seems too good to be true, it probably is. Whenever a credit card ad offers big prizes or incentives to people who sign up for the card, this should be a big red flag and the person should immediately stay away from the ad. Companies only offer large incentives because they are able to make up for it with excessive credit card fees and charges.
Nothing But Garbage
Whenever people receive emails concerning credit card offers, it usually is not a good offer. People call these emails junk mail, and that is exactly what these emails are. Get rid of the garbage, and you will ultimately get rid of many potential financial problems.
The smartest way a person can sign up for a card is to go directly to the credit card companies for information. Forget the ads and marketing schemes because they are specially designed to entrap and snag unknowing victims. People should obtain as much information about the credit cards as possible by asking the credit card company representatives detailed and compulsive questions.
People should also seek to obtain information about all the many different options that credit card companies offer. Rewards cards can be a great option for potential credit card users if the necessary information is obtained. These types of offers and incentive are real and can provide a very successful financial future for customers who know how to correctly use the card.
Both Max Anderson & are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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