Making a balance transfer between credit cards, either in whole or in part, can be a costly endeavor depending on the cards you're using to perform the transfer. Before making a transfer or even signing up for cards with this capability first look at the advantages and disadvantages of using this function below.

Depending on the credit card and your own credit history, you may be able to obtain credit cards with low or zero interest rates for a fixed term. These introductory rates usually apply to all functions available with the card and may last a few months or even as long as a year. Transferring a balance from another card to a card with no interest can make it infinitely easier to pay off that balance.

You should of course know this information before taking on any card, unless your sole motive is to use the card during the introductory period only and then make little to no use of it afterwards. It goes without saying that paying off as much of the balance as you can before the regular rates kick in is a wise idea.

Many cards have a setup like this, whereby different functions like balance transfers, purchases and cash advances will all have differing APR's. Likewise, some of these functions may not be subject to introductory rates, while others will. Having a card that has the best rate for the purpose you are most likely to use the card for is important.

Even if your card has an introductory rate on balance transfers, there may be a balance transfer fee assessed as well which may not be covered by the introductory offer. These fees could range from $2 to $5 per transfer, so be sure you know about any of these fees before making transfers.

This rate is the highest interest rate charged by your credit card company, and will take effect on late payments or over-the-limit balances. Even cards with or even very low regular rates may have large default rates, so be to never incur these rates firstly, but also make sure you know what they are and how and when they will take effect.