If you are considering moving a balance from one of your existing credit cards over to a balance transfer credit card and would like to know how much you can save by doing so, then take a look at this article. It will explain how to calculate your interest savings on a new card.
While it is common knowledge that a balance transfer credit card will save you a lot of money in interest charges, it can be difficult to know exactly how much you will end up saving. You can calculate how much interest you will save by using an interest calculator for balance transfers. This way you will be able to make a more informed decision about which card to choose.
2. Input the card you want to make the transfer to.
3. Calculate how much you will save.
Balance transfer example
If a person has two credit cards, one with a rate of interest of 16.99% p.a. with a balance of $3320, and the other card with an interest rate of 17.99% p.a. and a balance of $2533, he will save a lot of money by switching over his balance.
If this person wants to transfer a balance to a new balance transfer credit card to lower her interest payments, he will have to decide whether he can pay it off in six months or if he will require more time. Let's say that he needs longer than six months and he gets a credit card, such as the Citibank Silver Credit Card, that has a 12 month interest rate of 2.9%.
After calculating the results, this person will see that he will save $797.31 after paying a fee of $69, for that 12 month period.
After the promotional period has expired for the balance transfer credit card, this person will continue to save about $153.14 every month, when comparing it to the amount they are paying on their existing credit card.
When you use a balance transfer credit card calculator you can see exactly how much you will save by doing a transfer. You no longer have to pay high interest charges on your credit card debt because you have safe alternatives you can now choose.
While it is common knowledge that a balance transfer credit card will save you a lot of money in interest charges, it can be difficult to know exactly how much you will end up saving. You can calculate how much interest you will save by using an interest calculator for balance transfers. This way you will be able to make a more informed decision about which card to choose.
How to use a balance transfer credit card calculator:
1. Input your interest rates and credit card balances.2. Input the card you want to make the transfer to.
3. Calculate how much you will save.
Balance transfer example
If a person has two credit cards, one with a rate of interest of 16.99% p.a. with a balance of $3320, and the other card with an interest rate of 17.99% p.a. and a balance of $2533, he will save a lot of money by switching over his balance.
If this person wants to transfer a balance to a new balance transfer credit card to lower her interest payments, he will have to decide whether he can pay it off in six months or if he will require more time. Let's say that he needs longer than six months and he gets a credit card, such as the Citibank Silver Credit Card, that has a 12 month interest rate of 2.9%.
After calculating the results, this person will see that he will save $797.31 after paying a fee of $69, for that 12 month period.
After the promotional period has expired for the balance transfer credit card, this person will continue to save about $153.14 every month, when comparing it to the amount they are paying on their existing credit card.
When you use a balance transfer credit card calculator you can see exactly how much you will save by doing a transfer. You no longer have to pay high interest charges on your credit card debt because you have safe alternatives you can now choose.
Previous page: A Guide To Lifetime Balance Transfer Credit Cards
Next page: 0% Balance Transfer For 6 Months Credit Card Offers