There are all kinds of fantastic deals out there today which will allow you to consolidate your credit cards and other debt, and transfer the balance of your high interest debts over to low interest or zero percent interest credit cards.  There has never been a better time to do balance transfers.  Interest rates are at historic lows, so do it now while you still can.

     In an effort to lure consumers to their credit card, many companies offer free balance transfers from your old credit card. Once the money is safely owed to the new company, they will often provide a grace period where they charge far less on the transferred balance. Finding two, one, or even zero percent interest is possible. Oftentimes this introductory rate lasts for around six months to a year after the balance transfer takes place.

     There are many credit card companies including Visa, American Express, Mastercard, Discover Card, and many others who offer low interest balance transfers.  In most cases, the balance transfer low interest rate will be for a specified period of time.  In recent months we have seen low interest rates for as many as twenty-four months guaranteed for all balance transfers; now that is a great deal.  However, you always will want to read the fine print and make sure the credit card offers don't jack up the interest rate to ridiculous amounts after the low interest period expires.  

     Do your research, and look at several balance transfer deals before making the switch.  Also, make sure the credit card company you are transferring your balance to does not charge an annual card holder membership fee.  In this day and age there are plenty of credit card companies that do not charge a yearly fee, so there is no reason to go with one of those companies and pay an unnecessary fee.

 

As opposed to a normal credit card rate, a teaser rate is what credit card companies offer in order to get new customers.  These rates are much lower than standard in order to draw people in.  Card holders will often transfer their balance from a current credit card over to one with a low teaser rate in order to spend less money paying interest.  New credit cards may have interest rates as low as 0% initially.  Unfortunately for customers, the teaser rate only lasts for a limited time.  This rate can last anywhere from six months to over a year.  After the introductory rate expires, the balance on the credit card will be subject to the regular interest rate.  It is at this time that some people will look for another credit card to transfer their balance over to.  This is also the way that credit cards make a profit.  Customers need to be aware of when their teaser rate expires and when the new increased rate begins.  If you do not know when your teaser rate is up, then you might be surprised when you get your credit card bill and see a dramatic increase in your charged interest.

 

     The very best balance transfer deals are the ones that offer 0 % APR.  Zero Percent APR means you pay nothing, zilch, nada, zero percent interest for your balance transfers for a specified period of time.  Many credit card companies are currently offering 0% interest on balance transfers for the first 12-16 months.   Those are the deals you want to find, and they are definitely out there!

     Making a balance transfer work for you is an excellent practice, but diligence is required. Sometimes there is fine print attached with hidden charges. Some banks may charge a transfer fee that can be a percentage of the balance transferred. Be sure that there is a cap on the amount, like fifty or seventy-five dollars, or else a balance transfer in the thousands may end up costing a couple hundred dollars. Also, be sure the bank doesn't charge a high annual fee, or joining fee. The credit card companies are already getting your business, so don't let them take the upper hand in a balance transfer.

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