Transfer for low credit card rates?
To transfer or not to transfer? It's a question that many credit card holders ask themselves if their monthly payments make little impact on decreasing their debt. If high credit card rates are hampering your efforts to pay down your card, a balance transfer may sound appealing. As you consider moving your balance, it's important to answer some other questions first.
How long will my current card take to pay off?Before low introductory credit card rates sell you, determine how long it will take you to pay off your current card. If your funds are limited, use Bankrate's minimum payment calculator to find out when your debt will be paid in full if you only contribute the monthly minimum.
Can I make a dent in my debt during the introductory period?While many balance transfer offers include zero percent interest rates as an introductory offer, you must first consider how much you will be able to put toward your debt payment during this period. Consider your monthly salary and what bills must be paid in addition to your credit card.
Do low credit card rates counteract my balance transfer fees?Low credit card rates are attractive, but remember that balance transfers typically include a transfer fee that may be in the ballpark of 5 percent of your transferred debt. If you are transferring a large balance, that fee can add up quickly.
How much will that new card really cost?From annual fees to balance transfer fees, there are many additional costs that can help credit card issuers make money on your new account. Before low credit card rates tempt you, make sure you consider all of your options. Check Bankrate to compare balance transfer offers to determine which card is right for you.
Ready to accept that transfer offer? Use Bankrate's balance transfer calculator to find out when you will be done with your debt.
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Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.