What you need to know about Credit Card Balance Transfers

With soaring interest rates and people carrying more credit card debt it is very tempting to apply for a new credit card offering zero or very low introductory rates.  Before you sign that application there are important questions that you need answered.  Take the time to thoroughly examine the credit card offer.  A good place to start is to determine the introductory rate.  Make sure you find out just how long that ultra low APR lasts.  Finding a card that offers 1 year or more should not be too hard.  The next thing that you ask is does the introductory rate apply to new purchases or only to your transferred balance.  This one is tricky since many cards only give you the good introductory rate on your balance transfers.  If the intro rate only applies to the transfer balance make sure to find out what your APR will be on new purchases.   

People who decide to go the transfer balance route often overlook hidden balance transfer fees.  You should always ask if the credit card company charges any fees for transferring your balance from one card to the next.  If they normally charge a transfer fee you can try to negotiate with them to waive the extra charges.  Some companies will actually work with you on this.  The last thing that you want to be wary of is will the credit card issuer jack up your introductory rate if they run your credit report and see that you have a new black mark on your credit.  Ask the company what there policy is on this issue. 

Transferring your balance from a high interest rate card to a very low introductory rate card can be a good thing that saves you a lot of money.  There are many offers out there so shop around before deciding and make an informed choice.