The Rest Will Be Up To Your Discipline To Wisely Spend Money On Credit Cards

Category: Finance, Credit.

Balance transfer credit cards help you consolidate your credit card debt into one card, which enable you to save money on interest charges.

These credit card companies also market these as a credit card with zero interest on balance transfer as well as a cheap balance transfers credit card. First, assess your current credit situation. The concept is simple enough, but you need to know how to move money owed from high interest credit cards to low APR balance transfer credit cards. If your credit history has a consistent pattern of timely payments, you may well qualify for any of the low APR balance transfer credit cards. With planning and exercising discipline, you can bring down your large credit card balance. Transferring all or some of your outstanding balances to this card can help you to save thousands of dollars, in interest charges, annually. You can take advantage of the low APR, and apply all the money you save on the interest to the principal.

They start to charge interest after the expiry of this period. Many low APR balance transfer credit cards offer zero interest on balance transfers for a period ranging from six months to one year. It is imperative that you find out what interest they will be charging at that time. You need to shop around to ensure that your cheap balance transfer credit card do not turn out to be expensive. As of September 2005, most credit card companies typically charge APR of 124% , and this increases dramatically if you default on any agreement with your credit card company. Many credit card companies offer zero interest on balance transfer, but charge a processing or a transaction fee.

Look out for companies that charge a flat fee irrespective of the balance you transfer. This could be as high as 4% of the balance being transferred. Many companies charge a flat rate of$ 50 to$ 75 as processing or transaction fee. A flat 4% transaction fee means the higher balance you have the higher fee you pay. Low APR balance transfer credit cards seem very attractive, but you need to look into some hype: - Check the period of the low APR on balance. - Check the rate after this period expires. - Is there any balance- transfer fee? Look for companies charging a flat amount. The rest will be up to your discipline to wisely spend money on credit cards.

Balance transfer credit cards are indeed one of the best ways for you to slowly eliminate credit card debts due to high interest.