Low Interest Credit Cards for Balance Transfers

Balance Transfers Explained

A balance transfer takes place when a cardholder moves all or part of the balance from one credit card to another. Consumers often do this as a means to rid themselves of high interest charges and fees, and it can be a smart move if the balance is placed on a credit card with a zero interest or very low interest. The interest charge featured on the new card should always be less than the interest charge featured on the card from which the balance is being transferred.

The Process

Some credit card applications feature balance transfer forms which allow you to combine the process of applying for the card alongside a request for a balance transfer. The new credit card issuer then takes care of paying the old credit card issuer. This process can take a couple of payment cycles, so it’s important to keep paying your bill until you have verified that the balance transfer has been made.

Convenience checks are often distributed by credit card issuers to current accountholders as another means by which to accomplish a balance transfer. The amount of the check is then applied to your balance on the lower-interest card.

The Potential Fees

Before initiating a balance transfer, check to make sure you won’t be hit with a variety of fees. Questions you should ask include:

• Is there a fee to do the balance transfer?
• Is the interest rate for balance transfers higher than the interest rate for purchases?
• Is the balance transfer interest rate introductory, or will it remain the same for as long as the balance exists?
• Is there a grace period on the interest for the balance transfer, or does interest start accruing the same day the balance transfer is initiated?

Low interest credit cards for balance transfers aren’t always the best route for debt consolidation if the credit cards feature so many fees that the transaction winds up costing you money in the long run.

Find Low Interest Credit Cards for Balance Transfers

Start your search by contacting any lenders you already deal with, including:

• Your bank
• Your credit union
• Your credit card issuer

Ask about any special credit card interest rates for current customers. You may be able to receive a special rate because of your existing affiliation with the lender.

If you can’t find a suitable interest rate with a company you already do business with, check out some reliable websites online to find a credit card with a low interest rate. Some great sites to choose from include:

• BankRate.com offers current information regarding credit cards suitable for balance transfers. You can sift through the various offers and find the best offer available to you.
• Visa.com lists a wide variety of Visa cards that are perfect for transferring high interest balances from other credit cards.
• AmericanExpress.com allows site visitors to review the various American Express cards available, and features a simple credit application with a quick response.
• DiscoverCard.com lists the many special offers featured with Discover Cards, including zero percent introductory interest rates for balance transfers.

It’s a good idea to go straight to the source when comparing interest rates for credit cards that you intend to use for balance transfers. If you apply through a website that you’re not familiar with – or with one that seems questionable – you may not only be receiving incorrect interest rate and fee information, but you might also wind up sending your personal information to an unscrupulous source.

Use Caution

You can save a lot of money with low interest rate credit cards for balance transfers, but make sure you pay off the balance before an introductory interest rate expires if you would like to save the most money.