How to Benefit from Credit Card Balance Transfer Offers

By Leni Parrish on August 31, 2009

Financial surveys show that months with holiday seasons are times when most try to apply for credit cards. It is also after the holidays that credit card charges soar at the highest. In response to this marketing trend, credit card companies generously spend their marketing budget to attract new cardholders and to keep their old customers as well. How? Through credit card balance transfer offers.

By offering zero interest rate for balance transfers, even those who already have credit cards from other companies are attracted to open a new account hoping to pay off their charges at a less cost. Are you planning to apply for a balance transfer credit card as well?

If you are, then there’s nothing wrong with that. As long as you know how to use your new credit card wisely, you can enjoy huge savings by not paying the additional interest rate. Below are some tips so you can benefit more from your balance transfer credit card.

Choose a credit card with the lowest or no balance transfer cost. Some cards with zero interest offers make up for the loss by charging higher fees. How much will you need to pay for each balance transfer transaction? To really benefit, you should look for the lowest or no balance transfer fee credit card.

Don’t use your balance transfer card for spending. As much as possible, you should refrain from credit card purchases. Use your balance transfer primarily for that purpose. What some people don’t realize is that the interest rate applicable for purchases could be much higher than the regular rate. If you are required to make a purchase to keep your account active, use your card only for the smallest possible purchase.

Finish your payments before the interest rate changes. Take advantage of the zero interest rate. Get rid of all balances you transferred before the introductory period ends. This can prove to be a challenging task, especially if you have incurred a large balance. By focusing on your repayment and cutting back on your personal costs, you should be able to complete paying off your debts on time.

Compare your options before signing up. Study different credit card balance transfer offers before making a choice. Use comparison websites to make this task easier. Read online reviews to know which credit cards are doing well in the market and which ones are raving with positive feedback.

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