Home » Finance

Balance Transfers Credit Cards: How To Maximize Your Savings

Feb 18, 2008
Using balance transfers credit cards, you can move funds from one of your accounts to another. The advantage of doing this is simple, especially when you qualify for credit lines that offer low interest or even 0 APR to you. There are several ways that you can save money by using a balance transfers credit card. Many people are qualified for these lines of credit. If you qualify, use them wisely to save money.

What Are Balance Transfers?

A balance transfer allows you to move money from one credit card to another. In essence, you will pay off the balance, or portion of the balance, from one credit card with the other. Balance transfer credit cards are cards that allow you to do this. Most often, they are done through electronic payments or sometimes with checks that are sent to cardholders. In some situations, when you apply for the balance transfers credit card, you can transfer the balance immediately at that time.

Why Bother With Balance Transfers?

One of the best reasons to use balance transfers credit cards is to save money by moving money from a high interest rate credit card to one with a lower rate. A lower rate, even just by a few percentage points, can save you a great deal of money, if the card balance is significant. For example, if you have one line of credit with a $5000 balance at 20 percent interest and move it to a balance transfer credit card with a 15 percent interest, you will save $250 on an annualized basis on that balance.

0 Percent APR Balance Transfers

Sometimes, the best way to use balance transfers credit cards is through an introductory offer. Some lenders offer 0 percent APR balance transfers for a limited time for new cardholders. This period may be for three to six months (sometimes as long as 15 months for the most credit-worthy applicants) where no interest is applied to any card balance that is transferred during the initial application process.

To use this type of balance transfers credit card wisely, first you will obviously want to transfer any high interest rate credit card balances to the 0 APR credit line. But here is the key to making this type of offer really pay off: make sure that you payoff the outstanding balance within the introductory period. That way, you do not have to pay ANY interest or finance charges for that period of time. The savings can be substantial. Be advised, however, that you have to make sure that you pay off the balance before the introductory period expires. Any balance that is not paid off prior to the introductory period ending will start incurring finance charges at the regular rate, which can typically be exorbitant at 17 or 18% and much higher.

Monitor Fees

With balance transfers credit cards, it is important to consider any fees that might be associated with the use of the card. Most credit cards offer balance transfers these days, but some of them do charge a considerable fee for doing so. If you decide to use a balance transfer credit card for an introductory period, be sure that there is no balance transfer fee, and that the introductory discount applies to balance transfers.

When you use them wisely balance transfers credit cards provide optimum benefits to cardholders. You can save a considerable amount of money with introductory offers through balance transfer credit card offers, which means that you could be saving a substantial amount right now.
About the Author
Robert Alan is an editor for www.CreditCardAssist.com and frequently contributing writer on various credit card-related topics. Find more free information, tips and advice from Robert on the credit cards balance transfers page at CreditCardAssist.com.
Rating:
Please Rate:
(Average: Not rated)
Views: 117
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources