Compare Balance Transfer Credit Cards

How to compare balance transfer credit cards

If you have existing credit card debt that you would like to pay off, then a balance transfer card could be an excellent option. With this type of card, you can transfer debts from your current store or credit cards and usually enjoy a lower rate of interest for a given period of time. Paying less interest during the introductory offer period can give you a great opportunity to pay off what you owe.

When you apply for a balance transfer card, you will have the opportunity to fill in the details of all the balances you want transferred on the application form. If you are approved, your new provider will arrange the transfer, and you can start paying off your debts while enjoying less interest.

If you want to arrange a balance transfer after the account has been opened, you will need to check if this is possible with your new provider. Some providers only allow for balance transfers at the time of application. This is another reason why it is important to read the terms and conditions before you sign.

You should also be aware that your old credit card accounts will not be closed automatically when the balances are brought over to the new card. If you would like to close the accounts, you will need to arrange this yourself.

At the end of the introductory period, if there is any balance left unpaid, then the interest charged on that amount will revert to either the purchase rate or the cash advance rate, as specified by your credit card provider.

Here are some of the more important aspects to compare on balance transfer cards:

Introductory Offer:

Think about how long it will take you to pay off the transferred balances. If you think you can pay it off quickly, you can choose a shorter time. Shorter offers usually have lower interest rates. If you think it will take longer to pay off, perhaps consider a longer offer with a slightly higher interest rate.

Ongoing Interest Rates:

If you plan to keep the card as an everyday credit card once you have paid off the transferred balance, it is important to know what the ongoing purchase rate will be. If you tend to carry a balance from month to month, then having low ongoing interest rates can help to save you money.

Annual Fees:

Cards with more features can charge more in annual fees. Think about what you want from the card, and try to choose one that offers more in return that you will pay out in fees.

Rewards:

Some rewards cards also have balance transfer offers. If the balance transfer feature is the most important to you, choose a card that focusses on that. If you are more interested in rewards, choose a card that gives you the rewards you want for the spending you do most.