The entire concept of balance transfer is not something new as it has been there for a while now. Doing a balance transfer offers a simple solution for those in need. For instance, you may have used your credit card in a reckless fashion and ended up with a huge balance on your card. The problem may be compounded if the interest rates on your credit card are high. So, the best thing to do under such circumstances is a balance transfer onto a card with a lower rate of interest. You can make a 0% balance transfer from one card to another and save a huge sum of money.
First of all, you must choose the new credit card after considerable research and not make the same mistake all over again. Check the rate of interest, the annual fee, the balance transfer fee etc. These are the prime factors that you need to look into, while choosing a card. Some of the best balance transfer cards will have 0% interest on balance transfers. However, it is important to check for these offers. Most credit cards will offer the 0% interest on their cards as an introductory offer that may last for a period of 3 to 6 months, and the regular rates will start kicking in after that. There are a number of cards that offer a reduced rate of interest when you do balance transfers.
You should ideally choose a credit card that has the 0% introductory offer for a period of one year. So, you will at least have some breathing space for that period of time and you can pay off your balances quite effortlessly. You can plan your payment schedule when you have ample time such as 12 months or more in some cases. In case you come close to the end of the introductory period and if you still have some balance left, you may simply shift to another card. That way, you will gain an additional years’ time. However, this should not become a habit and such measures should only be used when there is no other option left. This is the most logical thing to do if you are stuck in a mess. If you can shift your debt from one point to another and still save some precious dollars, then you should go ahead without giving it a second thought. Choose only cards with the best balance transfer offers.