Making a balance transfer work for you is an excellent practice, but diligence is required. Sometimes there is fine print attached with hidden charges. Some banks may charge a transfer fee that can be a percentage of the balance transferred. Be sure that there is a cap on the amount, like fifty or seventy-five dollars, or else a balance transfer in the thousands may end up costing a couple hundred dollars. Also, be sure the bank doesn’t charge a high annual fee, or joining fee.
Balance transfers come in many shapes and sizes. The best offers are those which do not charge any transfer fees at all, and that offer a low rate of interest for a long period of time. You have to be very careful to read the fine print, when you are considering making a balance transfer. The low rate of interest might sound tempting, but if the interest rate increases substantially after the low- rate period has expired, then it may not be lucrative to accept the offer.
Balance transfers can save money, if there are no additional fees or if the quoted fees are minimal. Sometimes, even with the fee, a balance transfer is a good idea, if the interest rate is low. The best balance transfer deals are those which have no fees at all, and a low rate of interest for an extended period of time. I took advantage of an offer like this last year. There were no fees, and the interest rate is fixed at 9% for the life of the balance. The rate will never increase, as long as I pay the minimum balance each month, in a timely manner.
The important thing to remember is that you need to read the fine print. Some offers are good, and some are not. It’s up to you, the consumer, to make sure that the credit card company doesn’t take advantage of you.
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Tags: Balance Transfer, BT, Credit Card, Finance, Percent
July 28th, 2009 at 2:09 am
thanks !! very helpful post!
November 14th, 2009 at 12:50 am
Hmmmm that’s cool.