Balance Transfer Credit Cards: Three Reasons to Apply for One

Balance Transfer Credit Cards: Three Reasons to Apply for One
You've probably heard of balance transfer credit cards. But
you may not be aware of all the benefits that come with
them. These cards can help you get out of debt while
enjoying additional perks. If you're thinking about signing
up for a new card, here are three reasons to consider a
balance transfer.

A Chance to Consolidate Debt

If you have a number of outstanding balances on different
credit cards that are weighing you down, you're not alone.
Many cardholders juggle various accounts and interest
rates. When you want to get rid of the balances, it can be
hard to keep track of everything.

A balance transfer card is a smart option to get you
organized. You can consolidate your credit card debt into
one account. Balance transfer credit cards usually offer
lower interest rates than other cards. This allows you to
save on interest as you pay off the amount. By setting up a
schedule to make payments, you can get out of debt quickly.

0% APR Introductory Period

In addition to a lower regular interest rate, balance
transfer credit cards usually include an introductory
period. This may apply to the balance transfer itself. That
means that the amount you bring over will not be charged
interest for a certain time, usually between six and twelve
months. This creates a window for you to reduce the debt,
interest-free. If possible, you'll want to pay off the
entire amount during this time. Through this method, you
could save hundreds of dollars in interest fees.

Some balance transfer credit cards include a 0% APR
introductory period for purchases as well. This allows you
to buy items and avoid high interest fees. The 0% interest
on purchases is a convenient feature if you've already paid
off the existing balance. If not, you'll want to
concentrate on reducing the amount you owe before using the
card on a regular basis.

Additional Rewards

Balance transfer credit cards are often advertised as a way
to consolidate and reduce debt. And in a large part, they
are. But many also include additional benefits, such as
rewards programs. Once you start making purchases with the
card, you can earn rack up points for free airline tickets,
travel benefits, and cash back bonuses.

As you shop, compare the different features of balance
transfer credit cards. Consider the various interest rates
offered, as well as the attached rewards programs. Some
credit card websites include a balance transfer calculator,
which lets you see how much you would be saving by
switching cards. Punch in the different rates and balances,
and use it as a guide to find the right option for you.

You'll also want to read the fine print before applying.
Some cards charge a fee for bringing over outstanding
amounts from other places. Check to make sure you will save
more on interest than you have to pay in transfer fees. For
most cards, the savings do outweigh the costs involved.

After signing up for a new card, it's up to you to make the
most of it. Make monthly payments to get rid of any
outstanding balances as quickly as possible. Then start
using the card for new purchases. With proper planning,
you'll be out of debt and in the rewards in no time. How's
that for a good credit card deal?

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To View Balance Transfer Credit Cards click the following
link:
http://www.credit-card-surplus.com/balancetransfer.php . Ed
Vegliante runs http://www.credit-card-surplus.com , a
directory helping consumers to compare and apply for credit
cards.