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The Australian Guide to Credit Cards

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Comparing Balance Transfer Credit Card Offers

Most Australians have ever growing credit card debt. This can however be controlled using balance transfer credit card offers. Used smartly this method can save you from financial ruins. Read how to choose the best offer from the hundreds available on the market.

Balance transfer credit card offers are a great way of lowering your debt if used wisely. Choosing a credit card however can be a difficult task with the number of cards on offer. Below are some key points that you need to remember when choosing a credit card to transfer your balance.

The interest rate and fees

One on the main things you need to take into consideration is the interest rate, both on the balance and on purchases. Most providers offer 0% interest for six months or one year for balances transferred, however there are some that charge a small interest rate but over a long period of time. To choose which is the best for you calculate the amount that you owe, if its a large amount it is best to choose a longer transfer time, on the other hand if its a small amount you can go for a shorter transfer time.

The ongoing interest rate will also have to be taken into consideration. Usually if you are given a very attractive rate on the balance transferred, the long term interest rate will be higher. There may also be annual fees associated with the new credit card, sometimes the fees can be so high that it makes sense not to transfer the money. All this needs to be calculated when considering balance transfer credit card offers or else you could end up losing money.

Transfer period and what do you pay first?

Most of the cards only offer a limited period of time to transfer the money, after this period is over you may not be able to transfer money at the balance transfer interest rate. This period usually lasts between one and three months and starts from the day you receive the card.

Usually the terms of the contract will state that you pay the balance with the lowest interest rate first. This could mean that interest accumulates on other purchases that you have made, these interest rates could add up over time and you could be in a dire financial state. Hence the terms of balance transfer credit card offers have to be studies carefully before any decision is made.

You should also remember that you will still have to make normal minimum repayments every month even though your new card may not have any interest. Not doing so can lead to a lot of problems including termination of the lower interest rate on the transferred amount.