(1 votes, average: 5 out of 5)

Before Transferring a Credit Card Balance, Things You Need To Know!

Posted by J.S.

July 12, 2008

Have you been receiving offers in the mail from credit card companies? One you are more than likely familiar with is “0% Balance Transfers“. Before you decide to start filling out papers and sending them back in so quickly, you need to do some research. Do the right investigating to make sure it is worth the switch or transfer.

The number one thing you want to do is find out if it is really worth it. These great advertisements advertise a low introductory rate if you decide to transfer your existing credit card balances into their promotion. You might come across these offers, but you need to make sure the rates are really a good deal and that you don’t end up paying more in fees and interest in the long run.

Make sure you always read all the FINE print. Not only do you need to read the fine print, read everything! Go over it several times to make sure that you understand what you are consenting to. You might think that the fine writing is just junk, but it’s not. If you have any questions or concerns about an issue before you agree to the transfer, call the credit card company. If they value you as a customer, they will be more than willing to assist you.

When trying to make the final decision here is an example to relate to. If the advertised introductory rate is 3%, which is a great low rate on credit card #1 - if you transfer your other credit card balance from card #2 where your current APR is 11%, your standard rate. Then you open up another piece of mail and it is card offer #3 with an introductory rate of 0%. Just by looking at the papers you think credit card #3 is the best choice. Until you read the fine print, and realize that credit card #3 introductory rate is only low for six months, then the APR is 9%, where as credit card #1 has a higher rate that last for a year.

So before you decide to switch your balance from one credit card to another, you need to make sure it will all be worth it in the long run. Not only do you need to compare the introductory rates that they offer, you need to consider the length of the offer and what the standard APR will be. There will be additional fees such as transfer, annual, late, and others that you will have to consider.

Just because you receive this special offer in the mail does not mean that you actually qualify for that rate. Depending on your credit history and score, will determine if you are eligible to receive the special rate. Make sure when reading the fine print that if it states if you miss a payment, you might be penalized and they will make you start paying the standard rate, which will be an even higher APR.

Many credit card companies do offer great deals to people who transfer balances, and it can be worth your time to do the research. The most important tip is that you read all the fine print and if you have any questions make sure you as them before it is too late.

Once you have made your choice in the credit card you have decided on, the next process is to fill out the balance transfer application. In the meantime, make sure that you at least make the minimum payment on the original credit card. Once everything has been processed the new credit card company should send you a notice. Make sure you check with your old credit card company and request them to send you a zero-balanced statement. Make sure that once all this is done you can cancel your old credit card, and you won’t have the temptation to use it anymore.