Credit cards can get awfully expensive. The more we use them the more we can start to rely on them, and especially as our lives get more and more busy, sometimes it can slip our minds to take a look at exactly how much we are paying on interest for a certain card.
However if you take a look at different cards available, it can certainly pay off. The idea of balance transfers is quite a good one ? transferring money from a certain credit card to another one, in order to try and save some money. It may surprise you the amount that you are able to save.Interest on balance transfers
Some cards offer the opportunity to transfer money with no charge ? this can be extremely beneficial but such offers are difficult to obtain. If you want to start looking at transferring money from card to card, to avoid paying higher interest rates and to make the most of any introductory offers you may get, you’ll find a far greater range of options.
For example, as well as getting 0 interest on balance transfers, you can also find a great deal many other credit card offers that can help you save money. A Citi card, for example, offers 0% APR as an introductory offer, for 21 months. Howeve,r after that time period, (bearing in mind that 21 months would take you well into 2013), the APR will rise to between almost 12 and 21%, depending on your credit rating.
A Discover Card can offer a similar deal, however with a time period of 18 months, slightly less than Citi, with the APR rising to the same after that trial period.
This demonstrates the usefulness of switching cards fairly regularly ? if you take a look at the terms and conditions with each card, you can set it so that you can have the best deal for the longest time.
Credit rating
Obviously, wherever the best balance transfer credit cards are involved, there will be some catches. This is why it is always important to look at the terms and conditions before signing any contract, and to pay attention to any small print. Always look out for financial advice from an independent area if necessary.
Your credit rating will also affect your ability to accept certain deals. Obviously the better your credit rating. the better the deal you can find, but in the long run being able to pay off any debt will only improve your credit score, and having 0 interest on balance transfers and generally using transfer credit cards will help you.
But how can it affect your credit card rating to start off with? This is where you really have to be careful. Every time you open a new credit card your score will drop slightly, as you are a higher risk. However if you can play it right, getting advice where you need, you can help improve your credit rating in the long run, and in so doing help to pay off bills.