Five questions to ask before signing up for balance transfers on credit cards


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 » Five questions to ask before signing up for balance transfers on credit cards

Five questions to ask before signing up for balance transfers on credit cards

The content is accurate at the time of publication and is subject to change.
One of the best ways to wriggle out of debts that you cannot easily clear is by opting for balance transfers on another card that have favorable terms and conditions. However, this is a task that is easier said than done. A lot of people who blindly opted for balance transfers without giving it a second thought have regretted their decision which only added to their misery. In order to avoid such circumstances, there are a few questions that you need to ask before you opt for balance transfers on credit cards. Question #1: Is there a promotional offer you can avail? Considering the fact that the credit card industry is highly competitive, banks are stretching themselves thin to ensure they offer irresistible deals to prospective clients. Most of these promotional offers encourage balance transfers by offering zero percent interest rate. Look out for these offers. Before you sign the application form, ask the bank if you are being given that offer. If the answer is negative, then it is wise to shop around and look for cards that can offers you steal deals. Question #2: How long will the promotional offers last? This is a critical question that needs to be answered well in advance. Most banks roll out introductory rates only for a couple of months. Opt for cards that extend the promotional offer for six to twelve months so you can get better value for money and clear off a significant amount of debt you currently have. The new credit card acts that have come into play stipulate that every bank issuing credit cards should roll out the promotional offer at least for a period of six months. Question #3: What are the annual fees, APR and other rates applicable on your card once the promotional offer expires? To avoid undue stress at a later point in time, find out the annual percentage rates and annual fees that will be levied on your card once the introductory period is over. If they are too high, then look for other options that offer favorable fees and rates. Question #4: Are you eligible for the promotional offer? Though a lot of banks do offer introductory rates, not all customers qualify for that. Most of the time, people with really poor credit score and bad credit history are not given the privilege of availing the promotional offer. In such cases, you will need to negotiate with the bank and convince them to offer you a good rate so you can reduce your debts and get going on your way to repairing your credit history. Question #5: Are there any processing fees associated with the balance transfer? A few banks offer introductory rates, but make up for it by charging processing fees for initiating the balance transfer. Irrespective of the amount you would like to transfer, certain banks charge fees which may be quite high. Talk to the bank to find out if the fees can either be waived off or reduced so you can use that amount to clear off your existing dues.

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:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

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
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!