How Can You Reduce Your Interest Expenses During The Holidays With A Balance Transfer Card Offer
The credit card interest fees is the main reason why many people struggle to pay off their credit card debt and have to keep on carrying the burden from month to month. Lots of credit cards have interest fees that are in the range of 13% – 24% and interest charges add up the amount that you have to pay back. Many credit card companies now offer balance transfer cards for the purpose of making credit card repayment easier. Most balance transfer cards offer an introductory period, a period when no interest fee is charged on the card balance.
You must first transfer the balances of all your existing credit cards to the zero interest balance transfer card. Once your balance is transferred to the balance transfer card, you will see that the total amount that you need to pay to clear up the debt is reduced because the interest fees has been waived. Therefore, you are only making payment for the principal amount that you originally borrow from the credit card.
Comparing balance transfer card offers is easy. You simply perform a search for balance transfer cards at an online credit card comparison site and it will show you all the existing balance transfer card offers in the market. You can also visit blog reviews on the best balance transfer credit cards. These sites give you a quick overview of the most important information on the balance transfer cards including length of the 0% APR period, cash back on bonus categories, annual fee, and minimum credit score.
If your credit score is excellent or good, you will be able to qualify a balance transfer card with long 0% APR period. There are cards that offer a 0% APR period that is as long as 21 months. Many of these cards also do not have penalty and annual fees. Using a balance transfer card to clear up your debt is a great option if you believe you will be able to set aside a sufficient amount every month and finally clear up the entire debt within the 0% APR period.
You will still save money even if the card charges a balance transfer fee. The balance transfer fee is usually 3% or $5 minimum which is just a small amount compared to the amount that you save through the waiving of interest fees. Many balance transfer cards also do not have annual fee and penalty fee.
It is important that you have a steady job, the source where you will get the funds for paying the balance transfer card. You should just use the balance transfer card for paying your credit card debt and not use it for making purchases. Buying things with the card will add up to the debt that you owe which makes it hard for you to repay the debt.
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