More and more people are transferring their existing balances onto low interest credit cards. The main reason for doing this is simple, low interest credit cards are cheaper and transferring a balance often means that you get away with not paying interest for a number of months. Transferring a balance is simple, straightforward and can often be done relatively quickly. If you have an existing balance, are paying interest on that balance, and wish to save money, then transferring your balance may be the best and most cost effective option. Some financial experts even go as far as to recommend transferring again and again to maximise potential savings.
The hardest part of the whole balance transfer process has to be finding, applying and being accepted for a new credit card. Luckily the Internet has made things a lot easier and sped up the application stage no end. You can compare literally hundreds of cards online and even apply for them at their official websites. Financial experts make a point of saying that you must look carefully at your own finances before taking on any form of credit. Not only will this help you find the perfect card but an honest look at your situation will ensure that you can make repayments.
Once you have your new low interest credit card you can transfer your existing balance fairly easily. Sometimes you can even arrange for your balance transfer as part of the initial application process. You will be asked details of the amount you want to transfer and the account details. The card company then arranges for the transfer to be made. If you don't transfer your balance with your application you can always do so at a later date. Often you will be sent forms to apply for a balance transfer on a regular basis.
Most card companies offer 0% balance transfer periods for new customers. The length of time that these 0% periods?s lasts varies from provider to provider. On average the length of time offered is around a year, although there are offers of shorter and longer periods. The lowest offer period on the market at the moment is around 5 months whereas the longest is around 15 months. Other card providers offer interest-free periods until a certain date to encourage people to apply for a card sooner rather than later.
The other thing main consideration is whether there are any balance transfer fees involved. The average fee at present is around 2.5%. This means that if you transfer a balance of 1000 you will be charged 25 to do so. Once again, it is unwise to dismiss cards with a higher fee because they may come with other offers that make the card worthwhile. Also, as a general rule of thumb, cards with longer interest-free periods have higher fees. There are a few cards that don't have balance transfer fees around but they are rare.
Transferring a balance onto a low interest credit card is incredibly straightforward. Some financial experts recommend that once you have transferred a balance onto the card you leave the card well alone. Where possible you should focus on repaying the balance in full whilst the offer period lasts. As mentioned above, once the period ends, you can always attempt to transfer onto a new card again - the choice is up to you.
The hardest part of the whole balance transfer process has to be finding, applying and being accepted for a new credit card. Luckily the Internet has made things a lot easier and sped up the application stage no end. You can compare literally hundreds of cards online and even apply for them at their official websites. Financial experts make a point of saying that you must look carefully at your own finances before taking on any form of credit. Not only will this help you find the perfect card but an honest look at your situation will ensure that you can make repayments.
Once you have your new low interest credit card you can transfer your existing balance fairly easily. Sometimes you can even arrange for your balance transfer as part of the initial application process. You will be asked details of the amount you want to transfer and the account details. The card company then arranges for the transfer to be made. If you don't transfer your balance with your application you can always do so at a later date. Often you will be sent forms to apply for a balance transfer on a regular basis.
Most card companies offer 0% balance transfer periods for new customers. The length of time that these 0% periods?s lasts varies from provider to provider. On average the length of time offered is around a year, although there are offers of shorter and longer periods. The lowest offer period on the market at the moment is around 5 months whereas the longest is around 15 months. Other card providers offer interest-free periods until a certain date to encourage people to apply for a card sooner rather than later.
The other thing main consideration is whether there are any balance transfer fees involved. The average fee at present is around 2.5%. This means that if you transfer a balance of 1000 you will be charged 25 to do so. Once again, it is unwise to dismiss cards with a higher fee because they may come with other offers that make the card worthwhile. Also, as a general rule of thumb, cards with longer interest-free periods have higher fees. There are a few cards that don't have balance transfer fees around but they are rare.
Transferring a balance onto a low interest credit card is incredibly straightforward. Some financial experts recommend that once you have transferred a balance onto the card you leave the card well alone. Where possible you should focus on repaying the balance in full whilst the offer period lasts. As mentioned above, once the period ends, you can always attempt to transfer onto a new card again - the choice is up to you.
About the Author:
Using his experience from working in the financial industry Michael Levy writes for a number of financial websites. Read more about balance transfers and low interest credit cards here.
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