What is a balance transfer credit card?
A balance transfer moves credit card debt from one card to another with the goal of saving money on a lower interest rate. Balance transfers can be an effective way of paying down debt, as the lower interest rate allows you to put more of your money toward the principal.
What is a balance transfer credit card?
Balance transfer credit cards are a special type of card that offers you a low introductory interest rate (occasionally as low as 0%) for a limited time, usually six months to a year. If you have mounds of debt on high-interest cards, you can transfer the balance to these lower interest cards. The idea is that you can pay off your debt faster and owe less overall, since you’ll incur less interest with your lower rate.
6 Credit Card Costs You Should Never Pay
All of these credit card costs are avoidable.
Photo by GaudiLab / Shutterstock.com
Credit cards can be a great financial tool, helping you build credit to accomplish other goals, as well as providing you with a way to earn rewards.
However, credit cards can also come with a hefty cost. If you use credit cards, there are a few costs you should do your best to avoid paying.
1. Annual fee
Does your card charge an annual fee? You might be able to have it waived. A few years ago when one of my credit card issuers added a fee, I called and asked to have it waived and was successful. The key is to have a history of being a good customer meaning your issuer wouldn’t want to lose you and be willing to cancel your card if the company does not waive the fee.