Types of Credit Cards
What is a balance transfer credit card?
A balance transfer is the process of using one credit card to pay for another credit card to get a better interest rate. A balance transfer credit card helps you do just that: take away from Peter (with high interest) to give to Paul (with low interest), so to speak. But these kinds of cards come with some very important costs to you as a consumer: balance transfer fees. These fees can be quite high, often as high as $100. Will you save more than that in interest if you move your balance?
You must be sure you understand fully what the fees are for moving your balance to the new credit card. Always read the fine print! You also must know what the new credit card’s Terms and Conditions are. Is there an annual fee? What will the APR be when the introductory period is over? Is the low/0% APR credit card good for purchases or just balance transfers? Our comparison tool can help you with all this and more. By finding just the right balance transfer card, you are helping yourself, too.
See also:
What is a balance transfer?
How is my balance calculated every month?
How do I do a balance transfer?
What is a balance transfer check?
Last update: 2006-09-25 18:23
Author: BKO
You cannot comment on this entry