There are three credit card features required to get the most out of your balance transfers. You’ll want a card with no annual fee, a 0% interest rate for at least twelve months, and no balance transfer fees.
The main reason to transfer your balances from other credit cards is to save money on interest. Any additional fees you pay for the card will quickly reduce the amount of money you will actually save, so it is best to find a card with no annual fee. This shouldn’t be too difficult, as there are plenty of fee-free cards currently on the market.
Many Balance Transfer Credit Cards also offer 0% introductory rates on balance transfers, so you shouldn’t have a problem finding one.
However, you’ll want to find a card that has an introductory period of at least twelve months. If the introductory period is only six months, then you’ll either be back to paying a high interest rate before you know it or rushing to apply for another credit card in an attempt to transfer your balance yet again.
Possibly the most important and overlooked detail is the balance transfer fee. The balance transfer fee is usually calculated based on the transfer amount, so the more you transfer, the higher the fee will be. This fee can easily offset any savings on interest you would receive from the balance transfer, so it is very important to find a credit card that offers no balance transfer fees.
This can be confusing, as the details of balance transfer fees are often buried in the terms and conditions of the card. Some cards offer no balance transfer fees at all, although this is becoming rare. Most often, they will waive the balance transfer fees during the introductory period or for balance transfers requested during the application process. Once again, it is very important to read the details, as you may be required to use special balance transfer checks or follow some other process in order to avoid the balance transfer fee.
Once you’ve found a Balance Transfer Credit Card with these three features, you’re well on your way to saving money through your balance transfer.
These balance transfer tricks are the surest way to wipe away the benefits of a balance transfer, but once you understand these tricks, you can use them to your advantage.