How can I get the best credit card rates for balance transfers?

credit card rate balance transfers The best way to get an attractive credit card rate for balance transfer is research. When you have mounting credit card debt, it is very appealing to accept one of the many seductive get out of debt, transfer your balance offers that are jamming your mailbox and cluttering your inbox. But before you accept any credit card agreement, you must understand all the terms and conditions that come wrapped up in that enticing offer.

If you are a balance transfer novice or just don’t have the time to read all the fine print, click on the FREE credit card finder and learn more about credit card offers!

Most credit card companies offer an introductory low interest rate that applies solely towards the balance transfer. Such rates come with stringent terms and conditions. According to CNN Money, it only makes sense to do the balance transfer if you are able to pay off the total amount within the period of the promotion.

Understanding Balance Transfers on Credit Cards

As the term states, when you do a balance transfer, you move an unpaid amount or debt from one credit card to another. For a credit card balance transfer to be financially viable, the new credit card usually must offer a much lower teaser interest rate as an introductory enticement. Sometimes, this rate can be as low as zero percent APR.

The lack of financial charges per month, if you have zero percent interest rate, is a huge help in paying off your credit card balance.

But it is important to remember that most credit card balance transfers have associated fees that can be as much as 6% of the total amount. So that has to be factored into the total cost of the balance transfer.

Balance Transfer Credit Cards: A Smart Choice?

The CARD Act of 2009 mandates that any credit card company that offers ‘teaser’ interest rates to attract new customers cannot change that interest rate for a minimum of six months. Also, it requires the credit card company to be transparent in all its terms and conditions.

In other words, your monthly statement must show how long you have to pay off your balance, how much your monthly payment amount will be, and how much penalty you would have to pay if you missed a payment or could not pay off your balance within the stipulated time. With these safeguards in place, this is a great time to get the best credit card rates for balance transfers.

best credit card rates fro balance transfers However, it is important to remember that if you are unable to make any payment for more than 60 days, then your introductory low interest rate is likely to disappear and be replaced by a much higher interest rate as declared in your credit card agreement.

Additionally, you must understand how you are bound by time limits for paying off your transferred balance. In other words, some credit card companies require you to pay off the entire amount within the promotion period. If you are unable to do so, you will have to pay interest at a higher rate on the entire amount.

Financial experts ask all consumers interested in saving money by moving their balance from a high interest credit card to a new credit card offering low introductory interest rate, to make sure that they are able to meet their payment commitments.

It is also important to factor in the cost of balance transfer fees. Sometimes, depending on the balance amount to be transferred, the fee may be too high to make any substantial dent in your debt.

Low Interest Balance Transfer Credit Cards: Easy To Qualify?

There is no single determinant for getting a low interest rate credit card that applies towards balance transfers. One of the most important factors is your credit rating, your FICO scores that determine your ability to pay off your loans on time.

Sometimes the best credit card offers are made to new customers only, which will exclude you if you are a customer of the financial institution. You might qualify for the credit card offer but crunch all the numbers, factor in the worse case scenario, and then make an informed decision before signing up.

The Search is On: Getting the Right Credit Card

The path to debt reduction is littered with unexpected hurdles and tough decisions. But do your due diligence, read all the little text in the credit card agreement, ask the financial institution for clarifications, and exercise control on your spending. You will be surprised at how quickly that omnipresent shadow of debt will start to shrink.

Additionally, once you set yourself on that path of financial redemption, it is important to get all the help you can find.

Turn to the FREE credit card finder and look through select credit cards with the best balance transfer credit cards for you and watch your financial bogeyman melt away!