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One of the biggest problems plaguing a number of credit card holders in the United States is huge debts that they are unable to repay. These debts keep increasing because of the interest rate and other financial charges that get added to the balance each month. The only way in which this debt can be eliminated is when you are able to get to avoid any interest being levied on it. Hence, the best solution is to opt for balance transfer credit cards that offer good deals. There are a number of banks and financial institutions today that are rolling out good offers; however, you need to keep a few points in mind before you sign up for one of them.
A lot of banks offer interest free balance transfer facility. This implies you can transfer the outstanding balance on one card with high APR to another card offering 0% interest. While this may seem to be too attractive on the onset, there is some underlying truth that you need to know. The 0% APR is a part of the introductory offer that lasts only for a short span of time. The introductory period could range anywhere from 6 to 21 months. If you have a good credit history to your backing, there are chances that the banks may be willing to extend the introductory offer. However, if your credit score is far from good, you will have to be content with the offer given by the bank.
This is an important factor to tailor in before you apply for any balance transfer cards. Some banks do offer interest free transfer at the outset, but once the promotional offer ends, the regular APR levied may be pretty high to make up for the interest they missed out on. Hence, find out the details of the APR that will be levied on your credit card account once the promotional offer ends. Also, find out the APR levied on purchases and cash advances since they vary from one bank to the other.
Fees on the card
There are various types of fees that banks levy on credit cards. Some of the most common fees are the annual fee, late payment fees and over the limit fees. However, there are banks that do charge for processing the application for balance transfer credit cards. Hence, it is imperative that you find out the various fees you will have to pay before you sign up for any card.
However, before looking into any of these aspects, it is important that you look into your credit report and see where you stand. This is one of the key documents that banks consider before offering the option of balance transfer. Also, if you are interested in looking out for these offers from specific banks, call the customer service department in advance and find out the eligibility criteria and the various documents that are needed for this purpose.