Not All that Glitters is Gold: How to be Wary in Balance Transfer Offers


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 » Not All that Glitters is Gold: How to be Wary in Balance Transfer Offers

Not All that Glitters is Gold: How to be Wary in Balance Transfer Offers

The content is accurate at the time of publication and is subject to change.
According to the federal Reserve Bulletins` 2006 survey, approximately 74.9 percent of US families in 2004 own a credit card and 58 percent of theses families has a balance while in 2001, 46.2 percent of American families has credit cards and 55 percent of this figure carried a balance. With the fast growing dependency of Americans to credit card way of payment it is not surprising then to have high figures of credit card holders having balances on their accounts. In times when credit card debt are mounting, opening up a new credit card account might seem not to be the best thing to do, but for most credit card holders this is a good way out of their debt problems. Opening another account to pay for balances in existing accounts is possible through the credit card balance transfer. This service if offered by credit card companies to attract customers to transfer their accounts and balances. At a three, two or even zero percent interest, this balance transfer can be provided by the new credit card company. The service can actually allow consumers free to pay down the remaining balance on a credit card without incurring interest charges. However despite this luring property of credit card balance transfer, people must be very careful when deciding to use this service. To get the best balance transfer rate one must do a lot of research, comparison and careful reading plus analysis. Due to its appealing nature to the public, several companies are now offering balance transfer which gives consumers more options and more space to be wary at the same time. Consumers must be knowledgeable with the entirety of the balance transfer offer thus the following details the things that has to be considered and researched on before falling into promotional baits. Customers must research on the promotional interest rate that is being offered. Also it is equally important to know how much the interest would be after the promotional period. In line with this, customers must be aware of the length of the promotional period. In addition to this it is also wise to research on any fee that the company would charge to complete the balance transfer. Several credit card issuers charge a certain amount to process a balance transfer thus it is a smart move to look for an issuer that would charge less or no fee at all. Another thing that consumers must be aware of is whether the new company has annual fees. It is advisable to avoid such fee if at all possible, if not pick for the issuer with the lowest annual fee. Now that the credit business is on the go, several companies and issuers out-surfaced thus consumers have privilege to choose among the many options and at the same time this situation is also calling for extra precautions. In a nutshell doing a balance transfer can actually help consumers if they have carefully analyzed the things that have to be considered first and foremost. At the end of the day everything still boils down to being a wise, active consumer as the best way to deal with the world of alluring promotions.

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!