Are Credit Card Balance Transfers for You?
January 28, 2008
Many consumers used their credit cards to fund their holiday shopping last year and now it is time to pay those bills. This is a prime time of activity for many credit card companies to try to bring you onboard with their company by offering balance transfers. Do not be surprised if you begin to see your mailbox filling with offers from various credit card companies touting their great transfer programs. But be careful before you sign on the dotted line.
Bill Hardekopf from LowCards.com puts it this way: “Credit card issuers are fantastic marketers and they can make any card look appealing.”
Consumers who are considering a balance transfer should read carefully the entire terms and conditions section of the new card. It is vital that consumers understand the long-term interest rate and not just pay attention to the introductory or teaser rate that is being offered.
It is also important to read and understand the transfer fee, if there is one. Normally, the transfer fee will run around three percent of the current balance.
Most experts agree that when consumers take a balance transfer that they not use that same card for future charges until the balance that was transferred is paid off. It is also important to make sure that every payment is sent in on time. If a late payment occurs, it is likely the credit card company will increase immediately raise the interest rate on the account. This can happen even if the payment is a day late