BALANCE TRANSFER CREDIT CARDS

If you pay too much in credit card interest, rolling your debt over to a lower-rate card can save you money; you can either use the extra savings to pay down your debt or at least to save on your monthly interest payments. If you think you can roll over your balances indefinitely by taking advantage of 0% balance transfer offers, make sure you have excellent credit.

When looking for the best BT credit card, you should consider their intro APR first (go for 0%) and the length of the intro period (the longer the better). You can also get cards that have a low intro APR for both, balance transfers AND purchases. Look out for onetime or periodic charges such as balance transfer and annual fees.

Your check list, BEFORE you choose a balance transfer credit card:

• How long does the introductory rate last?
  
• What is the ongoing APR after the introductory rate expires?
  
• Does the teaser rate apply to transferred balances or new purchases, or both?
  
• How much is the balance transfer fee*?
  
• Does that card have an annual fee?
  
• How much are the late fees and the over-the-limit fees?

*The Balance Transfer Fee is important to determine the cost of switching your balances:
Some issuers charge a transaction fee as high as 5 percent! A 5% transfer fee on a $10,000 balance would cost you $500. Fortunately, many companies cap transfer fees at $50-$75. Make sure you understand the terms and conditions of the balance transfer before committing.

WARNING:
To avoid a negative entry on your credit report, NEVER stop making at least the minimum payment on your existing card until it is confirmed that your previous credit card issuer has received the payment from the new card issuer, and your balance is paid in full!