Transferring your existing credit card balance onto a low interest credit card can help save you money. Many credit card companies offer 0% on balance transfers to new customers and these periods can be a godsend if you have watched your monthly repayments steadily grow. Financial experts seem to be in two camps over balance transfers though. On one side of the fence are those that recommend transferring your balance whenever an interest-free period comes to an end. Other experts frown upon serial balance transferring and suggest that it may be harmful to your credit rating. While it is true that card companies are less likely to offer cards to those that repeatedly transfer balances, when the savings are taken into consideration, it may be worth the risk.
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.
Another thing that you should look out for when considering a balance transfer is any transfer fees that may be charged. Once again the cost of transferring a balance varies from card to card. Sometimes cards with longer interest free periods charge more than those with short periods. You will need to weigh up the benefits according to your personal requirements. On average the transfer fees are around 2.5% of the balance you wish to transfer. If you transfer ?1000 onto a card with a 2.5% balance transfer fee you pay ?25 pounds to do so; this fee will be put onto your card. There are some cards that have no fees attached for balance transfers but they are few and far between.
As you can see transferring a balance onto a low interest credit card is fairly straightforward and can help to save money. As mentioned above some financial experts recommend that you transfer your balance every time the offer period draws to a close. Other advisors point out that this can have a negative impact on your credit rating. Card companies may frown on serial balance transferors, who have become known as 'card tarts'. - 15224
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.
Another thing that you should look out for when considering a balance transfer is any transfer fees that may be charged. Once again the cost of transferring a balance varies from card to card. Sometimes cards with longer interest free periods charge more than those with short periods. You will need to weigh up the benefits according to your personal requirements. On average the transfer fees are around 2.5% of the balance you wish to transfer. If you transfer ?1000 onto a card with a 2.5% balance transfer fee you pay ?25 pounds to do so; this fee will be put onto your card. There are some cards that have no fees attached for balance transfers but they are few and far between.
As you can see transferring a balance onto a low interest credit card is fairly straightforward and can help to save money. As mentioned above some financial experts recommend that you transfer your balance every time the offer period draws to a close. Other advisors point out that this can have a negative impact on your credit rating. Card companies may frown on serial balance transferors, who have become known as 'card tarts'. - 15224
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.
