How to Tell if A Balance Transfer Offer is A Good One

If you have debt on a credit card, you might wonder if a balance transfer is a good idea. Of course it seems like one when you have a lower rate and more time to pay off the balance you owe without paying more money in the process, but it turns out that there are other things to consider, too. We thought we might take a few moments to share with you a few valuable tips so that you can learn to differentiate between a good balance transfer and a deal that is not worth your time, money  or effort.

What’s the fee?

Did you even realize that there is more to a balance transfer than just the rate you get when your balance is placed on another card? There is; and it’s not always low. You need to see what the fee is for transferring your balance, and how much additional debt that’s going to add to your amount due at the end of the day.

APR

Here is a bit of a tricky situation. Perhaps you see a card that has a very low APR that lasts forever and ever. Now you see a card with a balance transfer APR that is nothing but only lasts a year before going up significantly. What’s better? If you can pay off the balance before you have an interest rate kick in, that’s the better choice. If you cannot, and it will take you significantly longer to pay it off, you might want to do the math and see whether or not a lower rate for a longer term is going to save you more money.

Your credit score

Obviously, you need to know your credit score before you go applying for new cards. If you don’t have the score to qualify for a good rate, it’s not a good idea to get a new card. Chances are that you will be declined. If not, you will probably have a higher interest rate, and that’s not an impressive thing to have.

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