Tips For When You Compare Lifetime Balance Transfer Credit Cards
Tips For When You Compare Lifetime Balance Transfer Credit Cards
If you are going to get serious about repaying your credit card debt, you not only need to transfer your balance to a lower rate card to pay it off faster but you also need to make sure you’re choosing the best for lifetime balance transfer credit cards available. When making your comparisons remember these tips:
· Look for the lowest interest rate. The average interest rate on a lifetime balance transfer is around 4.90% but if you shop around it is possible to find a lower rate.
· Choose a fixed interest rate. The advertised rate on some lifetime balance transfers is actually a variable rate and this means that it is subject to change according to the changes the card provider makes to their Standard Variable Rates. Instead, go for a fixed rate as this will ensure that the interest truly is low for the life of your balance, and it allows you to accurately budget for your repayments as they will always be the same.
· Make sure you really are getting a low interest rate for life. Some lifetime balance transfer cards will advertise their low interest rates as ‘for life’ when really they are only for what seems like a long time to a credit card company - three or four years. If you are able to pay off your balance within this time then this won’t matter, but if you have done your budgeting and know that you really do need a low rate for the life of your balance, then check the fine print of the credit cards you are considering.
· Check for fees. Most balance transfers will incur a transfer fee which is usually a percentage of your balance. In comparison to the high rates of interest you are paying on your old card this fee may seem negligible, but if you make some quick and easy comparisons you can choose the lowest transfer fee, and even find a balance transfer offer which is fee free.
· Make sure you can meet all the conditions. The main condition you will have to worry about with these credit cards are being eligible for that lifetime low rate. Some balance transfer cards will have a condition that states you must meet all of your minimum monthly repayments and if you are late with just one payment you could lose that low rate.
· You will have to be a new customer. Most credit card providers do not accept balance transfers from their own credit cards so if the card you are trying to transfer a balance from is on a card with a certain provider, you will not be able to take advantage of any of that provider’s balance transfer offers. For example, if you have an debt on an ANZ account and wish to transfer it to another account, it must be to an account with another bank such as St George. Knowing this can save you a lot of time making comparisons between transfer offers for which you are not actually eligible.
By making these simple comparisons before choosing a lifetime balance transfer cards you can be sure you have the best chance of paying off your balance quickly and maintaining a healthy credit report.
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