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Tired of paying interest on your credit card debt? Don’t get caught in a cycle of trying to pay down your interest. A little known secret of avoiding paying credit card interest is using a balance transfer credit card. Transferring a balance can keep you from paying too much in credit card interest. Here are a few things to remember when shopping for a balance transfer credit card:
Always look for a balance transfer credit card that offers a 0% intro APR. This basically means that you don’t have to pay ANY interest during the intro period. Many of these cards offer intro periods for up to a year and a half. These credit cards generally come with other perks, such as cash back or travel rewards.
The only downside of a 0% intro APR credit card is that it is usually hard to be approved for the card unless you have good or excellent credit. If your credit score is not up to snuff, you can try making fixes to it yourself or you can hire one of the top credit repair companies to help you with your credit issues.
If you are transferring a massive balance, it might not make sense to use a balance transfer card. Most balance transfer cards charge a balance transfer fee, which is generally 3% of the balance. So if you are transferring a balance of $10,000, you will be paying $300 in balance transfer fees. If that is more than you would be paying in interest, you might want to reconsider.
If you are applying for a new balance transfer credit card, look for one that has no annual fee. If you are paying $80 in annual fees every year, it might not outweigh the benefits of getting a balance transfer card.
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