Factors to consider before choosing balance transfers on credit cards

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » Factors to consider before choosing balance transfers on credit cards

Factors to consider before choosing balance transfers on credit cards

Credit cards have now become an integral part of life. They are the most convenient way to make purchases not only in supermarkets and malls, but also from online stores. In addition to being the easy way to make purchases, credit cards also serve another very useful purpose. You can consider opting for balance transfers on your credit cards to help you reduce your financial burden. This is a boon to innumerable people who are having multiple credit cards and reeling under large debts.

With many banks and financial institutions throwing in some great promotional offers for people opting for balance transfers, there is no way you can resist these offers. However, it is important not to fall for it hook, line and sinker before considering various important factors. Let us take a look at a few points that you need to take into consideration before opting for balance transfers.

Most often than not, people would like to transfer their balances from one credit card to the other because of the current rate of interest on the card that has pending dues. It is no point if you opt for credit cards that have a high rate of interest again. In order to avoid this, look out for cards that have promotional offers on them. Thanks to the highly competitive environment in this sector, a lot of banks have some interesting offers to lure newer customers.

The time period for the offer also makes a difference. Opt for balance transfer on the credit card that is willing to offer you the longest promotional period so you can enjoy better benefits for a longer time. Once the promotional period elapses, the normal APR comes into play thus pulling down the benefits. You can overcome this by opting for cards with longest promotional period.

Another important to factor to consider before choosing the right card for balance transfer is the cost involved. Some banks proclaim that they have the lowest interest rate, but they make up for the loss by having various fees like administration fees, processing charges, balance transfer charges and many more. Hence, take all these costs into consideration and compare them with the current card and the balance on it. If the total exceeds the current balance, then, it makes no sense to opt for transfers on such cards.

Balance transfer on credit cards is a good move only if it is a well planned and informed decision. Make sure you consider all aspects before going in for one.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Top 5 Cards for Travel from Our Partners Winter 2017/18 – Expert Choice

Posted: December 8, 2017

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: December 1, 2017

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Credit Card Tips For Holiday Shopping 2017

Credit Card Tips For Holiday Shopping 2017

Posted: November 27, 2017

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading