Getting a card that is 9% or even as low as 5% may not seem like much when compared to 0% card. But, a 0% card is only temporary. Think you can just get another 0% card? Card hopping is something that will injure your credit rating in the long run. However, there are distinct advantages to having a low rate balance card for life. You may be glad to know that there are just a few things to understand when learning how to compare life of balance transfer cards.
Comparison Points
When shopping for cards, you will want to compare the following:
- Interest Rate – The interest rate is paramount and the lower the better in this instance. If you have a lot of debt that you anticipate will take some time to pay off, it is important to find the lowest rate possible.
- Transfer Fees – Many credit card providers charge a fee to initiate a balance transfer. Some charge 1% of the balance. Look at the interest rate and see if the fee assessed is still worth it to apply for the card.
- Annual Fee – This is not a fee that you can avoid. Almost all providers charge an annual fee. You will simply want to compare what the different fees are before deciding on a card.
Additional Points to Consider
When trying to understand how to compare life of balance transfer cards, you will also want to remember the following points:
- Do Not Use For Purchases – This is a card that should not be used for purchases. If you make purchases on this card, it will be charged at a higher rate and the entire point of getting the card to lower your debt will be moot as. Because of the hierarchy of payments, your balance made from purchases will not be paid down until all of the lower interest debt has been paid off. If you are not careful, this is a trap that can ensnare you and cost you a lot of money.
- Initiate Transfer As Soon As Possible – You should also try to transfer as you are able. Most cards have an expiry on the time you have to initiate the transfer. It is usually one to three months. The sooner you do it the sooner you will be saving money.
Learning how to compare life of balance transfer cards will save you a bundle in interest fees over the life of your balance. Taking the time to compare will serve you well in the long term.
Related posts:
- Best Credit Card Balance Transfer For Life Offers
- Lifetime Balance Transfer Offers
- A Guide To Lifetime Balance Transfer Credit Cards
- 0% interest balance transfer credit cards offers compared
- 7 Easy And Effective Ways to Cut Your Credit Card Spending
Posted on Friday, July 9th, 2010 at 2:44 pm
You can leave a response, or trackback from your own site.
