Low Interest Rate Credit Card Balance Transfer Offers

Balance Transfers Explained

The concept of balance transfers is easy to understand. Suppose you have a large balance on a high interest credit card, or perhaps you have balances on several credit cards and would like to consolidate all the balances to one low interest card. After finding a credit card with an attractive balance transfer option – such as 0 percent interest or a little higher – you request a balance transfer. Your new credit card company handles the transaction by directly paying off the other credit cards, and now the balance sits on the new credit card.

Although the balance transfers are handled by the credit card company, you should continue to make payments on the other cards until you can verify that there is a zero balance. Some balance transfers can take a couple of months to complete, and the last thing you need is to build up late payment fees and damage your credit report because you assumed the cards were paid off when they weren't.

Find Low Interest Rate Credit Card Balance Transfer Offers

There is an abundance of low interest rate credit card balance transfer offers available. You may want to start by checking with financial institutions with which you already do business, such as your bank or credit union. Be sure to take the time to compare other offers as well. Websites such as BankRate.com offer excellent search tools to help you find the best low interest rate credit card balance transfer offers.

Here is a brief listing of some of the best offers available:

• The Discover Platinum More credit card offers a 0% introductory APR for balance transfers. There is also no annual fee with this credit card.
• American Express Blue features a low interest rate for balance transfers. Although this is not a 0 percent APR card, the low interest rate is not introductory. In other words, the interest rate will not shoot up after a predetermined length of time.
• The Chase Platinum Visa card offers a 0% introductory APR on all balance transfers for the first year, and also features a rewards program for purchases.

The lowest interest rate credit cards go to the applicants with the best credit ratings. You cannot expect to get approved for a phenomenal credit card if your credit history is less than stellar.

Avoid Perpetual Transfers

Balance transfers can be a great idea if you carry balances on high interest cards or if you want to consolidate your credit card debt onto one card. The problem arises, however, when balance transfers become a method of shuffling debt around from one low interest card to another without ever paying it down. Yes, a 0 percent APR on a large balance is fantastic, but how long will you bounce that balance around before you tackle the issue at hand: your large credit card debt?

Remember that excessive inquiries on your credit report in addition to opening and closing multiple credit card accounts can lower your score considerably. This means that you should limit your use of balance transfers and not get into the habit of frantically searching for a low interest rate balance transfer every time an introductory rate is about to expire. A balance transfer can be a great financial tool, but should not be considered a perpetual solution.