- Consider your Credit - ... Consider what your credit level is now and what your credit level may be at the end of the introductory period. If you suspect that your credit may be lower than it is now at the end of the intro period you should look at a Fixed Low Interest Rate Credit Card or with longer intro periods. More about credit and balance transfers.
- No Transfer Balance Fee - No transfer fees is a very popular category. Most transfer fees average around 3% with a minimum charge of of $10 -$90. Keep in mind, a lot of "no transfer balance fee cards have higher rates AFTER the introductory rate is over. If you cannot realistically pay the balance in full during the intro period also look at cards with transfer fees as well. More about No Transfer Fee Balance Credit Cards ..
- Credit Type - Depending on your credit type, there are different levels of transfer balance credit cards to consider. Obviously, the better the credit the larger the selection of cards with lower rates. However, when you have average to fair credit, it gets a little harder. Here are the most popular, and what we consider the Best Balance Transfer Credit Cards for Each Credit Class.
- Does Transferring your Balance Make Sense? - You need to make sure you're not jumping out of the frying pan and into the fire. If you have a pretty good rate on your current credit card and you are only transferring your balance to lower your payments you need to really think about it. To compare the differences you need to REALISTICALLY estimate how long it will take you to pay the balance off and then use our -
 Balance Transfer Calculator
- How Much Should You Transfer? - If you are getting a better rate and a good intro rate you want to transfer all of it. However, if you are planning a new purchase with your new credit card with the lower rate you may want to leave some room on the new card for this.
- What if you don't get approved for the full amount? - If you do not get approved for the full amount to transfer you should transfer as much as you can BUT leave some room on the new card so you do not appear to be "maxed" out.
- Applying for More than One Card - If you do not get approved for the full amount, or you want to make sure you get your best deal applying for more than one card is perfectly fine. In fact, applying for two cards at the same time will improve your chances of getting approved. Waiting for a week or so later makes it appear as if you were turned down and could hamper your approval.
- Will Transferring Your Balances Help or Hurt Your Credit? - Anytime a company pulls your credit it "dings" your score. These dings heal relatively quick, unlike negative marks. This is why we recommend that you apply for all of the cards you will need at the same time. This way, the "dings" will heal at the same time instead of being spread out.
Also, keep in mind that credit cards can have a negative affect on your credit if your balance rises over 50% of your credit limit. For this reason we suggest that you try and spread out your balances evenly among all of your cards.
Keeping the balances lower than half of your credit limit will actually improve your credit scores.
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Due to today's economy, credit card issuers have reduced the benefits for "no transfer fee credit cards" signifigantly. While these cards still represent a great value to most consumers, we suggest that you consider balance transfer cards that do charge a transfer fee as well.
Even though you may have to pay a transfer fee, depending on your balance, the introductory deals that are still being offered may give you a better deal. The average balance transfer fee is around 3%, or $150 per every $5000 that you transfer. |
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