Best Balance Transfer formula

Best Balance Transfer formula

Before applying for any card you need to check the following:

The introductory offer
It is important to know what the interest rate is, and how long the introductory offer lasts. You will see offers for zero or very low interest rates but traditionally these are only available for a limited period of time such as 3 to 6 months, although if you do a bit of shopping around you can find offers on low interest rates for up to 15 months. But even having zero interest for just six months can make a big difference to your debt balance, and enable you to save considerable dollars.

Balance transfer fees
Before you sign any form of contract you need to read the small print and find out what the balance transfer fees will be. They can range between 2% to 4% of the debt balance that you are transferring. If you are transferring a large debt and the fees exceed the interest you are currently paying then it would be pointless to do the transfer, as there is no gain or benefit.




Annual fees
One thing that is often overlooked when people are looking for the best balance transfer is whether an annual fee is payable on the new card. It is not unusual to find a no annual fee card but it is worthwhile checking because suddenly finding you have to pay a $250 p.a. fee sort of takes the edge off the savings you are hoping to make with your transfer.

Because there are so many card providers competing for your custom finding the best balance transfer credit card can become frustrating, but many credit card services are now providing comparison tables on their websites where you can see at a glance all of the best current offers available, which is a considerable time saver.