3 Things to Consider Before Transferring Your Balance to a Low Interest Credit Card

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3 Things to Consider Before Transferring Your Balance to a Low Interest Credit Card

With an increasing number of families feeling the stress of the nation's current economic issues, many are looking for ways to reduce their monthly payments. A balance transfer to a low interest credit card is usually thought of as the ideal solution to reduce monthly credit card bills. Before you jump on that bandwagon, there are some things you should consider.

Beware of Teaser Rates

How does an interest rate jump from 0 percent to twenty? Easily. With a teaser offer. What looks like a low interest credit card may actually be a high-interest credit card in disguise. Unfortunately, if you don't know what to look for, you may find out too late.

If you want to avoid falling victim to teaser rates that can bury you in high payments once the intro rate is over, make sure you clearly understand the terms and conditions of any card you're applying for. Comparison sites like Star Reviews can help you determine which cards are low interest credit cards and which are merely introductory offer cards.

Look Out for Hidden Fees

Another thing you need to beware of are hidden fees that can turn a great deal into a sour one. A credit card with a rate of 8 or 9 percent on balance transfers for the life of the card sounds pretty good, until you realize a 3 percent balance transfer fee is being charged.

Pay More Than the Minimum

Many people transfer balances to a low interest credit card hoping to have their balances paid off sooner. Remember, your monthly payment may go down but it will take you just as long to pay off that card if the minimum monthly payment is all you send in each month. Pay as much as you can towards the balance when the statements come in. Even though a low interest credit card costs less, it's best to aim for a goal of having a zero balance as quickly as possible.

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Low Interest Credit Card Reviews

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3 Things to Consider Before Transferring Your Balance to a Low Interest Credit Card