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The 0% balance transfer cards are hitting the leader board. But how will you know which is the best choice? One offers a good perk but has a high annual fee. One offers a lower annual fee but doesn`t have anything else or whatsoever. So how do you weigh your options given the single 0% and the other numbers contained in most credit card websites?
First know whether you really need a 0% balance transfer credit card. If you bills are stacked with high charges and high interests, you may do so. But if you are okay with your current card, balance transfer is not the right one for you yet or may be never. Balance transfers is an ideal way to protect yourself from tremendous charges that you can`t handle anymore, so better make a double thinking when contemplating on getting one.
Know the period of the promotional offer. Some credit card balance transfers offer a three or six month zero percent interest charge. That`s a short while for you to get your bills down. Try getting a one-year period so you`ll have more time to get your liabilities down. Also, take advantage of the time period. Make sure though that the interest free charge is still applicable to your future and current purchases. Some credit card bank transfer only allows the zero percent to be applied on the amount you transferred.
Third, consider the balance transfer fee. The fees are mostly dependent on the amount you transferred. Make sure that there are cap fees, too so that you won`t be paying too high for a single transfer of fund. This will also help you be ready to come up with a fee when transferring the funds of your credit card. Don`t be blinded by the very low rate given, when computed with your transfer, it can become tremendous.
Fourth, know the annual interest rate behind the zero. Sometimes after transferring funds to another credit card, you will be charged a higher interest rate than the current one. So look at the real rate behind the zero interest charge.
Fifth, compare the rewards. Though some have higher interest rates, those with low interest rates may be offering plain services. That means no perks or whatsoever just the pleasure of offering credit. But try looking at other offers, too. Look for a slightly higher fee balance transfer credit card that has a very useful reward. Some balance transfer credit cards may offer discount auto insurance or travel packages. So consider this when weighing benefits.
Sixth, read and learn from the reviews. Customer feedbacks are sometimes the most important indicator of service excellence in a credit card company. For instance, a credit card company who has satisfied a lot of customers will be the best companies to obtain the transfer cards. Those with a lot of negative reviews can make you one of the irate customers once you enroll in their cards.
Credit cards are among your greatest responsibility in life. Being wise in choosing and comparing credit cards and services will help you reduce your burden of responsibility.