The internet has so many balance transfer card offers and you may be confused as to which one to pick. Every balance transfer card has different terms including intro promo length, fees and etc. There are several things to consider when you are looking for a balance transfer card that can help you to save the most money.
You must first calculate how long it will take you to pay off your debt. Then, you can start shopping for a balance transfer card that has a suitable length of 0% intro promo. There are balance transfer cards with 0% intro promo that lasts from 6 – 21 months. Cards with long intro promo requires perfect credit score.
Therefore, prior to applying, you should first request for a free credit report from the credit bureau to check your credit score. It gives you the opportunity to review the credit report for error and raise your credit score a bit. You can try to get preapproved for 3 – 4 balance transfer cards and then choose the one with the longest intro promo.
Besides, you also have to consider the fees that it charge including balance transfer, penalty fee and etc. You will come across some cards that waive the balance transfer fee. Usually, the balance transfer fee is waived on condition that you transfer the balance within a specified time frame, for example, first 60 – 90 days.
You can call the credit card company and confirm with the representative all the details concerning the length of the intro promo and waiving of the balance transfer fee. As a reminder, you should note down the expiry date of the intro promo. In this way, you can make plans according to your budget to pay off the debt by the end of the intro promo.
You must apply a balance transfer card issued by another credit card company and not with the same credit card company that issue your high interest credit card. The reason is that many credit card companies don’t allow the transferring of debt to a balance transfer card that they issue.
You have to consider how much is the minimum payment of the balance transfer card. The minimum payment may be higher than the minimum payment that you are currently paying on your high interest credit card. You must make sure that you can afford the minimum payment. It will be best if you can put all your spare money in paying off the balance so that you can clear up the credit card debt faster. You must take care never to fall behind on payment otherwise the 0% intro promo offer will be forfeited.