Balance Transfer Credit Cards:

 4 steps toward a good balance transfer experience

If you’ve heard of balance transfer credit cards and seen the offers, you know that there’s definitely an opportunity in them to get rid of any debt you’re carrying. Follow these steps to ensure that the balance transfer credit card you pick out works for you – and better yet, helps you build a better financial future.

Know what you Need For starters, you’ll want to have a full understanding of where you stand in terms of credit and debt. Look through your current credit cards and tally up the balances on them. Then find the interest rate you’re currently paying for each of these. Could you do better? Probably, and that’s where a balance transfer credit card comes in to play.

Look at the Options Once you know what you want to transfer, sort through your options on the Internet. For each card, look at the balance transfer fee that it charges. Also check for an annual fee and any other charges.
Find what the interest rate offers are and how long they last. Then look for additional benefits. Numerous balance transfer credit cards include a rewards program and other features, such as travel insurance.

Write down your Plan Most balance transfer credit cards come with an introductory period where you won’t be charged any interest. This 0% APR will last for 6 to 12 months. It usually applies toward balance transfers, although some cards include the offer for new purchases too.
Take into account the zero-interest period, and write down how much you are going to pay toward the consolidated balance each month. This is where you’ll save hundreds of dollars on interest charges and get your balance down quickly.

Stick to It Once you have the balance transfer credit card, make the monthly payments as planned. If possible, avoid making new purchases until the balance is paid off. As soon as that happens, you can start using the card just as you would a regular credit card.