Before I can get into use balance transfer credit cards, I feel that it is very important that I explain exactly what a balance transfer credit card is. Balance transfer charge card accounts are charge cards that allow you to utilize them to pay off other credit card accounts with a much lower annual percentage rate. These charge cards usually come with a very low introductory interest rate. An intro interest rate is one that will last a shor period of time, usually somewhere between 6 months to a year. Also, balance transfer charge cards are usually only for people with good or excellent credit. With less than perfect credit, it is extremely hard to find a balance transfer credit card.
When looking for a balance transfer credit card, it is important that you look at a couple different aspects and weigh the good and bads of each charge card. Here are the things you want to figure out:
1. What is the intro apr? – This is a very important question to ask when looking for the best balance transfer credit card. If you are able to pay off the outstanding debt within the introductory period, you want to know what you are going to pay during this time. Most balance transfer charge cards come with a 0% intro interest rate however, some of these charge cards will have a 2.9% or a 5.9% intro interest rate.
2. What is the transaction fee for the transfer? – This is also important. In the past, balance transfer charge cards didn’t have fees. Well, unfortunately with the economy being so horrible, this is no longer the case. Actually as of about 6 months ago, I havn’t seen a balance transfer charge card that didn’t have a transaction fee. However, even with the fees, it may still be in your best interest to transfer balances to save some cash. If you find a balance transfer charge card with a fee that is less than 5% you are actually doing well. As a matter of fact, Discover card is running promotions between 3% and 4% fees. This is definately something that you may want to take advantage of. Actually it is an awesome offer because it comes with a 0% introductory interest rate.
3. What is the ongoing apr? – This has to be the most important aspect in finding a balance transfer charge card. The ongoing apr is the interest rate that you will pay after the promotional period. You don’t want to transfer money from one charge card to another if the ongoing interest rate is going to be higher than what you are already paying. Yes I understand that 0% introductory interest rate looks great but, if you can not pay the balance off completely within the promotional period, you are going to end up putting yourself in a worse position than you were in before.
If this is all too much to take in or you need help with another subject, feel free to contact Jem Credit Cards. They are the leader in providing first class customer service whil offing the best credit cards and debt advise around. You can contact them:
*By phone – (561) 355-0069
*By email – Support@JemCreditCards.com
*On the web – www.JemCreditCards.com
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