The main purpose of a balance transfer is to save money. To maximize these savings it is important to find the best deal that is being offered. Card issuers are advertising these promotional offers to gain new customers, but it is your responsibility to take full advantage and beat the credit card companies at their own game.

First you would have to look out for a few pitfalls that are commonly experienced, but can easily be avoided with the right knowledge. The introductory period does not last forever and it can be difficult to pay off the entire credit card during this period, therefore the regular rate becomes relevant. Always check the regular rate to make sure that your savings would not be lost in the first few months after the promo period expires. A lower regular rate than your current card will add to your savings and is essential in finding the best balance transfer credit card deal.

Another factor to consider is the balance transfer fee. A standard fee of 3% is usually charged on all transfer requests, but some cards may waive the fee on the introductory offer within the first 60 or 90 days from the time of the application. Credit cards without this fee may have a higher regular interest rate or a shorter introductory period, which means paying the 3% may be the best deal available.

The intro rates may only apply to transfers and not be valid for purchases. If that is the case you should not be using the card during this period for any purchases, because all your minimum payments will go towards the balance with the highest interest rate. Use your old card for this purpose. Even though it means two credit card bills, it also means additional savings.

Taking into account the above factors when looking for a balance transfer credit card is the first step towards reducing your debt, but it also requires a lot of discipline. Paying only the minimum amount due is not going to help you in the long run. You can benefit from these savings by paying more than minimum.

You can find a list of the best balance transfer credit card deals, but you need to decide on the best option. Once you have found the right choice you can apply for credit cards and be on your way to reducing debt.

Tags: Apply for credit cards, Best balance transfer, Credit card, Money

This entry was posted on Tuesday, April 14th, 2009 at 12:00 pm and is filed under Credit. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.