Credit Cards — Low Fee Balance Transfer Cards
If you are looking for the best deals on Low Fee Transfer Credit Cards then see my comparison table here – Low Fee balance transfer Credit Cards
Most credit card issuers do not require cardholders to settle their bill in full, every month. Although it can be easier to pay off a credit card debt over time, the option of paying by instalments attracts interest charges, which can be as much as 30% a year or more. As additional purchases are made, additional interest is added to the cardholder’s account, to a point where the monthly repayment becomes a significant and increasing outgoing.
To ease the pressure on their finances, the cardholder may consider transferring some or all the debt to a credit card provider that charges a lower rates of interest. Although the rate of interest can be as low as 0%, card providers usually apply a fee for accepting a balance transfer — 3%+ of the amount being transferred, is not untypical.
Obviously, the less the cardholder pays for transferring a balance, the better.
Balance transfers — other key points
- Some card issuers allow cardholders to transfer more than one credit card debt to the new card. They will, however, set a limit on the total amount of debt that can be transferred, which is usually no more than 95% of the new card’s credit limit
- Providing the cardholder stays within their credit limit, he or she may be able to use the card for purchases, although interest may be charged on those transactions if they are not paid off in full, each month
- Most low interest rate balance transfer deals expire after a set period of time. At that point the arrangement may be renewed, or the credit card company may start charging interest on the remaining balance (if any) of the transfer/loan
Penalties may be applied for missed or late payments, or if the cardholder exceeds their credit limit
To compare the best deals on low fee balance transfer credit cards see my independent comparison table here – Low Fee Credit Cards.
More easy to understand explanations you may like:
Use my comparison tables to compare: