A credit card transfer can be a wonderful way to save money. Which is absolutely something we can all benefit from … especially in these trying economic times.
For those cardholders that carry a balance forward from month to month, they know full well how quickly the cost of paying high interest rates can add up.
Credit card balance transfers used to be quite popular. Banks and card issuers used them as incentives to acquire new customers and lure existing cardholders away from their competitors.
Perhaps you recall how aggressively transfer offers were marketed. That pretty much ended when the economy went into a tailspin. Unemployment soared and hard times ensued.
Banks and financial institutions suddenly found themselves in a perilous position due to the record high number of defaults. Many required a bailout from the taxpayers just to survive.
The good news is, however, that the worst of the recession is behind us and it is still possible to get a credit card transfer to get relief from high interest rate balances.
There are some important factors to keep in mind when comparing offers. They include, but are not limited to:
- Annual Percentage Rate (APR)
- Annual Fees
- Balance Transfer Fees
- Introductory Rates
You should know that the interest rate you receive from the issuer is dependent upon your credit rating. That applies to both new purchases and transferring existing balances.
Many will offer an introductory rate of 0% APR. This special rate is usually good for 6 months but can sometimes go up to 12 months.
Taking advantage of the Introductory period is a great way to pay down the principle that you owe. That is very best way to save money on high interest rates … by eliminating them.
Be sure that you understand what the APR will be when the intro period expires (if there is one). You can get this information in the disclosure statement.
If you have any questions about how the program works do not hesitate to contact a Representative. Quality cardholder services include access to representatives that provide assistance when needed.