Balance Transfers & Interest Rates
Transfer Credit Card Balance
If your current credit card has a high interest rate you may benefit by transferring your credit card balance onto a card with lower interest. This will allow you to pay off your credit card debt quicker – provided the interest rate on your new card does not increase at the end of an introductory offer. And that’s the catch with the best credit card offers, many revert back to a higher interest rates after 6 or 9 months. More...
Before you apply for a credit card ask yourself some key questions:
- 1) Is there a fee for transferring your existing credit card balance?
2) When does the introductory rate expire? and
3) Does this afford me enough time to clear my debt?
If you are satisfied that a better deal awaits with another credit card company and you can repay your balance within the low interest period, then shop online for the best credit card deals.
See our comparison tables for the best credit card deals and apply online.
Interest Rates
When comparing interest rates on credit cards, you should look for the APR figure. If you usually repay your balance over a period of time instead of one instalment, you will pay a level of interest. The Annual Percentage Rate (APR) will determine the real cost of the credit card as this is what you will pay on top of what you spend. A credit card company may review the APR rate if you present a low lending risk, or in other words have a good credit history and high salary.
Check the Small Print
Your APR rate will be in the small print of your contract and this should be carefully checked before signing. Also, if your card provider intends on increasing the interest on your credit card at any time in the future, ie after an initial grace period, this too will be outlined in the small print. Charges and fees will also be included in the small print so familiarize yourself with the details to gain a true picture of what deal you are being offered.
Make yourself at home in our Forum and find out what everyone else in America thinks about credit cards. There is also our up-to-date News section for all the latest on personal finance. If you need help finding a provider or would like to review a company, please don’t go without checking out our A-Z directory.
