The content is accurate at the time of publication and is subject to change.
Many of us have fallen into the trap when we read about attractive offers on credit cards. Many a time, we opt for the credit card and blindly shop for earning some rewards which in the end are not worth the amount we spent in the first place. It is only much later that we realize that we have way too many unpaid bills and very little money at hand to pay it off. In addition, the interest rates, credit card fees and other factors that are added on making your outstanding dues much higher than the money you spent. If you find yourself in this predicament, it may be time to consider a balance transfer.
You may have heard about balance transfers and even received emails about them many times. When considering a balance transfer, take care to read the terms and conditions listed in the fine print and ensure you are opting for a better deal on the new card. Not everyone can be an expert on credit cards. All you need to do is to figure out whether you can cut down on interest rates and reduce the amount you need to pay with a balance transfer. There are many different kinds of offers available in the market but be careful before you sign-up for it.
When considering balance transfers, have a clear understanding of the interest free duration. Also consider the payment you will need to make to clear off the dues on the new card. Balance transfer deals may say that you will need to pay 0 interest for the amount transferred, but do check about the fees that may be applicable. If there is an annual fee, check if it’s an amount that you can afford to pay each year. Do not forget to look out for any additional fees on the card. Generally balance transfer offers would be for a limited period so make sure you clarify this point thoroughly.
When looking at a balance transfer deal, whether you are talking to credit card agents or directly with a bank, ensure you understand every detail. People sometimes wrongly assume that low interest rates are also applicable to new purchases. This is not the case most of the time. There may be a different interest rate on any new purchases made using the new card. Make sure you do not add to the already large amount you are indebted to clear. If you pay attention to your credit card statements and balance transfers, you will be able to secure a very good deal on them.