Credit card balance transfers and how it can create savings is truly an ingenious way of paying off balances without interest. As excited as a mouse getting inside a crate of cheese, it is understandable that most people cannot wait to avail of any balance transfer schemes offered today. However, before filling out that online form on the screen, answer one simple and very significant question: what features should card balance transfers have?

The Features to Hunt for

When doing a credit card balance transfer, it is most important to pay attention to three features of the package offered. These include; one, the normal card rate, two, the teaser rate, and three the transfer fee.

The Normal Card Rate

As its name suggests, this is the interest rate normally applied to a credit card. In other words, it is the inherent rate sustained by a card after duration of the promotional offer has passed. It is no secret that companies would offer consumers a card with unbelievably low interest rates for the first six or twelve months, and consumers grab these cards immediately because the deal is just too attractive to resist. However, an unstudied choice may result in getting one with ceiling priced interest rates, which would prompt each holder to pay more.

The Teaser Card Rate

Every card holder must pay attention to the duration of the teaser card rate. This rate is offered unbelievably low by card companies to consumers in hopes of getting them to sign up. Most often, companies do offer 0% interest rates, which are highly coveted by new and existing card holders. However, it is important to note that this rate is too good to be true and too good to last. Give it six or twelve months, and after that companies would then start charging the normal card rate.

The Transfer Fee

There are only a handful of credit card companies that offer a no balance transfer fee. Most companies charge transfer fees, especially when they offer 0% interest rates. The idea is that each holder must pay for transferring money or debt from an old credit card account to a new one.

Out of all three significant features, the most overlooked element is the transfer fee. Usually, credit card holders do not bother to ask if they are privileged with the no balance transfer fee. This is clearly a grave error since paying for transfer fees may end up costing them a lot more than what they signed up for.

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