Credit cards are increasing in popularity and nowadays most of us in America have at least three credit cards. But most credit users start accumulating new credit cards after using the first one for at least 6 months to a year. It is obvious that these users might have accumulated some credit balance over this time. Now, when they decide to get a new card, they might opt for a transfer of the outstanding balance to the new card. But it is necessary to compare credit card balance transfer offers before taking this decision.
Low balance transfer offers
When credit card users compare credit card balance transfer offers, the main criterion that they should consider is the balance transfer rate offered by the new credit cards. It is obvious that unless the balance transfer rates offered by the new credit cards are lower than the previous credit card, there is no point in attempting to transfer the balance from the old card to new card.
Nowadays, there are many credit card companies that are trying to get new customers and one of the most common ways in which they lure customers is with low balance transfer offers on their credit cards.
Usually these offers are very low when compared to the rates on balance transfer that these credit card users are currently being applied.
0 balance transfer rate offers
No matter how low the offers on balance transfer rates may be, nothing can compare to the 0% balance transfer rate offers. Since there is a lot of competition going around, credit card companies want to get the better of their competitors. No wonder that most of the latest offers on balance transfer rates are in the 0 % range.
Points to check when you compare credit card balance transfer offers
When you compare credit card balance transfer offers, be sure to check if the low rates apply only to balance transfer rates or to all transaction on the new credit card. Many a times, people jump to conclusions and think that the rates applied to balance transfers are applicable to all transactions on the card, but that has to be confirmed from the terms and conditions first.
Another point to note is about the balance transfer rates that will be applied after the offer period comes to an end. This is very important because any amount that is pending after the offer ends will be charged at high interest rates.
There might also be charges like annual charges or extra charges that are combined along with 0 % or low interest rate balance transfer offers. It is better to read through the fine print before you transfer your balance to the new card.
It is necessary to compare credit card balance transfer rates offered by the various credit card companies before you transfer your balance to the new card. Read the fine print and double check the terms and conditions to avoid pitfalls later on.
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