Checklist to decide whether you should go for the balance transfer card


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. 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. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Balance Transfer Cards » Checklist to decide whether you should go for the balance transfer card

Checklist to decide whether you should go for the balance transfer card

Updated: October 10, 2018

The content is accurate at the time of publication and is subject to change.
A balance transfer credit card is offered by card issuers to attract customers of other credit card companies. However, not all balance transfer offers are necessarily good. It is important to have your calculations in place before you choose to go for a balance transfer credit card. Here are a few things you must double check in order to decide if a balance transfer credit card really offers some benefit. Does the card levy a lot of fees? Fee is one way in which credit card companies earn a lot of revenue apart from the interests earned on card debt. So, the benefits that a balance transfer card offers you can vanish if you are not aware of the different types of fees charged. For example, a high late fee or over the limit fee is not desirable. But what you must surely check is whether there is an annual fee and if yes, how much. An annual fee of over $50 only adds to your outstanding debt. Most credit card companies charge a balance transfer fee which is around 3% of the balance transfer amount. You must take this additional cost into account at the time of taking a call. Some credit cards may charge a bigger balance transfer fee as well. Introductory period long enough for your credit score Some credit cards may offer introductory periods as long as 21 months but it might not necessarily be true in your case. The introductory period varies based on your credit score in most cases, which means that if you have an average credit score, the introductory period might be shorter than 12 months, which could really lay all your plans to waste. So, before you apply for a balance transfer card, you must check what the introductory period will be for someone with your credit score. Initial and final APR should be impressive For you to go for a balance transfer credit card, it is important that the new card offers an impressive initial and final APR. Good balance transfer credit cards usually offer an introductory rate of 0% during the introductory period after which the APR will go up. The final APR shouldn’t be too high and should be less than 20% if you are to even consider taking the credit card. If the final APR is high, it could represent a risky proposition especially in the scenario where you are unable to repay your outstanding credit card debt before the end of the introductory period. The card should offer good savings and good credit limit Transferring your balance from one card to another is not something you should do often as that will affect your creditworthiness. So, if you plan to go for balance transfer, make sure you pick a card that offers a good credit limit. Higher the credit limit, better it is for your credit score. The card should offer other credit card rewards as well so that you can make impressive savings.

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.

Other Balance Transfer Cards Research:

Related Research:

Raise Your FICO Score

Posted: February 12, 2012

Your FICO score is pretty important. Here are some tips to raise it.Get Rewarded If you have a decent track record with payments, call up the credit card issuer and ask for a “goodwill deletion” which means that because of your spectacular… Continue reading

Key Points To Keep In Mind When Transferring a Balance

Posted: December 28, 2011

The enticement of a balance transfer offer is that your outstanding balance will accrue 0% interest for a fixed period of time, allowing you to make some headway on paying down your debt. Here are some things to consider before filling out… Continue reading

How To Overcome Bad Credit History

Posted: February 17, 2012

In 2012 millions of consumers will likely submit an application to open up a new line of credit. Before doing so, it is of utmost importance that individuals gain a thorough understanding of their personal credit situation to avoid being… Continue reading

You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!