Credit card balance transfer
Online Credit Cards - Balance Transfers

Customers looking for credit cards should take a number of different factors into consideration when making their decision. The first and most important feature of a credit card is the APR. The second is the credit card balance transfer rate. This is basically the amount of interest you will have to pay on any money you have borrowed on previous cards. Credit card balance transfer rates vary enormously from card to card, so it's worth spending some time shopping around to find the deal that best suits your individual needs.

Many credit card companies offer 0% balance transfer rates for a limited period (usually about six months). Morgan Stanley , Accucard , Citibank and Easyjet are all good examples, but there are others on the market that offer 0% balance transfer rates for longer periods. For example: Barclaycard offers 0% for the life of the balance as long as you spend £50 a month minimum on the card (but after the initial introductory period the rate reverts to the normal APR).

Ideally those looking at credit card balance transfer deals should be combining this with low interest rates. There are some companies out there offering very competitive deals. For example: the Halifax One card offers a nine-month 0% balance transfer rate together with typical APR of under ten percent. The Mint credit card company similarly a 0% balance transfer deal with a typical APR of around 11%. Again because of the stiff competition it's difficult to understate the importance of shopping around.

Basing your choice of credit card on the balance transfer rate alone is fairly short sighted and you must also consider the APR. A surprising number of people fail to pay off their transferred balance in the introductory period so you should still be thinking about the overall interest you will have to pay. It is also likely that you will also be spending money on your card and this will quickly add to any debt (and cause financial difficulties in the long run). Ideally you shouldn't be accumulating large amounts on your card otherwise you could end up paying considerable sums in additional fees. Trying to clear your balance every month will help you maintain control of your spending.

 

 

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