What are balance transfer cards for?
It’s the time of the year again when some people can’t control the use of their credit cards. If you can’t help using multiple cards for your purchases and have to accept that you’ll be on debt for a short time, better save some money by applying for a credit card specifically for balance transfers.
So how does balance transfer credit cards work and why would you need one?
If you prefer to use cards with high interest rates (maybe for its perks), you could save money if you could transfer the balance from those cards to one with lower interest rates. That’s what balance transfer cards are for. It’s like a credit loan for credit card balances.
You might think to yourself, how could they make money if they keep on lending for a small interest rate? That’s where the annual percentage rate (APR) comes in. You have to shell out some money to transfer balance. So make sure that you get balance transfer cards with low APR or even 0% APR’s.
Personally, I would stick to just one or two credit cards because I’m so lazy keeping track of due dates. But if you can’t help using plastic a lot, make sure that you pay on time or consider balance transfer cards if you can’t.
You might also be interested in:
- Another credit card. Should I or should I not?
- Choosing the right credit card
- How to transfer contacts to your iPod Touch
- Do you really need another credit card?
Filed under: Category what?