What should I take into consideration before opting... - Balance Transfers Questions


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Credit Card Applications » Questions » User Questions » Balance Transfers » What should I take into consideration before opting for interest free balance transfers?

What should I take into consideration before opting for interest free balance transfers?

Answered on | Updated on June 17th, 2011
The content is accurate at the time of publication and is subject to change.

The concept of balance transfers is extremely beneficial to people with a poor credit history and high credit card debts. Credit card lenders have come up with exclusive balance transfer credit cards with amiable terms and conditions that can work in favor of the consumers. However, if you indeed want to save money by applying for balance transfers, and reduce the outstanding dues at the earliest, there are a few things that you need to do before applying for these cards.

First of all, before applying for a credit card just to avail interest free balance transfers, find out if you have an existing card on which you can avail this facility. Any card that still have available credit limit can be considered provided your overall dues do not exceed the credit limit on that particular card. Consider applying for a new card only if you don’t have any such card in your wallet currently.

There are many 0% balance transfer cards that offer promotional offers to customers. Before applying for the card, find out if you are eligible for the promotional offers. If your credit history is way below acceptable levels, it may be difficult to get 0% APR even on balance transfers. Banks will charge you certain amount of interest terming you as a high risk customer. If the bank considers you eligible for the promotional offers, find out the duration of the offer and the interest rates that you will have to pay once the offer period ends. Do not opt for credit cards that offer interest free balance transfers, but charge very high interest rates after the offer period to make up for the loss in revenue.

Before applying for the balance transfer credit card, you will have to collate all your outstanding dues and find out if a balance transfer credit card will indeed prove to be helpful. You will also need to figure out the approximate time you will need to clear off these dues. If you opt for balance transfer cards that offer extended interest free period for, let’s say, 21 months or 18 months, you will surely be able to make a difference and reduce your debt to a great extent.

Finally, before signing on the dotted line of the application form, find out the various fees that you will have to pay on the card and if it is worth applying for despite the fees.

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.
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Intro APR on Balance Transfer: 0% 12 months on Balance Transfers

Ongoing APR on Balance Transfer: 15.74% - 25.74% (Variable)

Balance Transfer Fee: 3% of each balance transfer; $5 minimum.

Excellent, Good Credit

Intro APR on Balance Transfer: 0% (first 12 billing cycles following each balance transfer that posts to your account within 45 days of account opening)

Ongoing APR on Balance Transfer: 18.24%, 22.24% or 25.24% variable based on your creditworthiness

Balance Transfer Fee: Either $5 or 3% of the amount of each transfer, whichever is greater

Good/Excellent Credit
See Rates & Fees

Intro APR on Balance Transfer: 0% Intro APR for 12 months

Ongoing APR on Balance Transfer: Variable APR of 15.24%, 19.24% or 25.24%

Balance Transfer Fee: Either $10 or 4%, whichever is greater, will apply on each balance transfer and credit card check

Good, Excellent Credit
See Rates & Fees

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