Top Tips for Selecting a Balance Transfer Deal
27/08/2010
There are many offers on balance transfer deals currently on the market – finding the best rates and terms can be complicated though.
Follow our top tips on what to look for when comparing credit card providers to ensure you are completely clued up and have complete control over your finances:
- Many credit card providers offer 0% interest on balance transfers, however this is usually only for an initial start up period of anywhere between three months to a year. Points to consider here are how long you will need to pay off the balance and if this is a long enough period for you to do so.
- Always consider the interest rate on balance transfer credit cards after the initial introductory period, noting what it rises to – if you are in it for the long term a high interest rate may not suit your credit card needs.
- Beware chasing low interest rates by changing providers every time the initial period expires as it could affect your credit rating. Plus you could end up with lots of credit cards in your wallet, tempting you to rack up unnecessary debt.
- Investigate balance transfer fees as these differ from one provider to the next, most tend to charge two-three per cent of the balance you are transferring. If you are transferring a large amount of money it is advised to stay with the new provider for a considerable time otherwise these fees will outweigh the savings you make on the low interest rate.
- Be sure to obtain the right credit limit with your new credit card depending on how much you are likely to need. If you only require a small limit you should bear in mind that interest rates could be lower as you are a smaller risk. If it is a larger limit you require make sure it is big enough to accommodate you otherwise if you go over this, interest or penalty charges can be very high.
- Check the time limit within transfers to prevent losing out on the deal you had in mind and also check that you are eligible for this deal. If you are applying for a different card with the same provider you may not be entitled to the new offer.
- Shop around for the best deals. As with most financial products it is always recommended that you compare prices and deals offered by providers to find a deal that suits your own unique individual needs. Comparing prices online is easy, and can save you a considerable amount of money too.
Compare Balance Transfer Credit Cards with Moneyexpert.com
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