There are more factors that a consumer considering a balance transfer credit card should consider than the introductory interest rate p.a. in fact unless the balance transfer credit card is a life of balance transfer credit card the term of the introductory offer and the interest rate the balance transfer reverts to after the balance transfer are perhaps more important than whether the introductory rate is 0, 1 or 2 percent.
Questions you should ask yourself before you elect to apply for a balance transfer credit card include: How long is the balance transfer introductory period? What is the amount I want to transfer? To pay it off entirely during this period how much will my monthly payments be? Are there any fees to transfer the balance? What is the interest rate that the balance transfer reverts to after the introductory period? How much is the card’s annual fee? Is there a life of balance transfer option?
Those who have looked at the options, the amount of their balance transfer and the monthly repayments that will be required to pay off the balance transfer in a 6, 9 or 12 month period may consider the life of balance transfer to be the best option.
Life of balance transfer credit cards are some of the best and yet most overlooked balance transfer credit cards available. Theses credit cards will keep the special introductory rate in effect on the card for the life of the balance transfer. In other words, the interest rate stays the same until it has been paid off entirely. This is an excellent option for those who have a large outstanding balance that could not be repaid in full during a 6, 9 or 12 month period.
These cards will usually have a balance transfer rate a little higher than the lowest available due to the unbeatable term of the offer. These cards will generally also have a higher annual fee than some of the most competitive around. Despite these drawbacks the life of balance transfer is an excellent option for those with outstanding balances that are unlikely to be repaid within 12 months. While most life of balance transfer credit cards, like their limited term offer counterparts allow new purchases at a standard purchases rate it is not recommended as these purchases will accrue interest at that rate – sometimes without interest free days until the outstanding balance has been paid in full.
If a consumer feels new purchases may need to made at some time before the balance has been repaid it would be wiser to keep the old credit card wherever possible.
