Charles H. Miller
Credit cards got you to debt, now it’s your time to use them to get out of debt. You will want to get a balance transfer card to move balance from your existing card(s) to the new one that has an introductory period of 0% APR. This way you could save hundreds on interest payments and eventually remove the big chunk of your debt. Or completely get out of debt.
The basic premises of playing this game are simple — move balance to the new card with a period of 0% APR and act responsibly. Here are 6 tips on how to choose the right balance transfer card and how to act once you get one.
1. You want 0% on both balance transfers and purchases
Although most people get a balance transfer card to eliminate a part of their debt (or completely eliminate it), you will want a card that offers 0% APR on both balance transfers and purchases. This sort of card could be useful if you need to urgently buy some product/service. It is good to have the option to make interest-free payments when needed.
2. Make sure “free” is free
Just because some card is advertised to offer 0% APR it doesn’t mean you will get that rate. It all depends on your credit rating and the bank’s judgment whether you are “worth” the 0% rate. Generally speaking, those with excellent credit rating should easily qualify for a 0% card, but you never know. Also there can be some other fees that may increase the cost of card use on a daily basis. Make sure to read the fine print carefully.
3. Pay on time
Not managing to do so and your bank will remove the 0% APR. What’s more, after you’re late with your payments, you may be slapped with a penalty fee. These details on responsible card use are all written in the contract so, again, you should read it thoroughly. But even without reading it you should know that making timely payments is a must.
4. Don’t just pay the minimum
By all means, if you can, pay more than a monthly minimum to remove as much debt as possible. The main reason why balance transfer cards are so popular is that they allow people to pay off their debt, either in its entirety or a big chunk of it. See how much money you could afford to pay every month and “just do it.” As Nike would “say” it.
5. Organize
Add the date when the 0% APR is expiring to your calendar and act accordingly. The bank has no obligations to remind you that a new, higher rate will apply after certain date; it is up to you to organize yourself around that date. And again, if possible, make sure to pay off the entire debt by that date. Or at least, pay as much as possible.
6. Don’t get the first balance transfer card you see
And don’t call your bank for advice. Your bank is not the only player in this market and there are many choices out there. Shop around and see what other credit card issuers have to offer. Only then make your decision.
Start by checking out offers below this article where you will be able to choose between a number of balance transfer cards from different credit card issuers. Good luck. 😉
