Credit card balance transfer offer


Be Smart When Using a Credit Card Balance Transfer Offer

If you live in Galesburg MI and you have good credit, you undoubtedly receive a credit card balance transfer offer at least once a month - if not weekly. Sometimes, a credit card balance transfer offer accompanies an offer of a new credit card, but the offer is most often from the bank that issues your current credit card.

A credit card balance transfer offer usually proposes one of two things. First, it may offer you a zero percent interest rate for a certain number of months. Second, it may offer you a low interest rate until the balance is paid off. Which you choose (or whether you should choose either) depends upon a number of factors.

If you're considering a credit card balance transfer offer, take a good look at the interest rate you're currently paying. Next, look at the balance transfer fees listed in the fine print of the credit card balance transfer offer. For example, the balance transfer fee might be three percent of the amount transferred; it may also have a ceiling of, say, $75.

For a zero interest balance transfer, calculate whether the transfer fee is lower than what you would pay in interest if you kept your balance on your current card. For a low-interest balance transfer, calculate whether the transfer fee plus the interest rate is lower than what you would pay in interest if you kept your balance on your current card.

Another factor to consider - whether you live in Michigan or any other state - is what happens when the "teaser" rate expires. In other words, if the credit card balance transfer offer is zero percent for six months, what interest rate will you be charged in month seven? If the interest rate is relatively high, you should think long and hard about whether or not you'll be able to pay the entire amount off before the teaser rate expires. If so, and if you've done the interest and fee calculations, it probably makes sense to do a balance transfer. If not, you might consider other options, such as seeing if your local bank in Galesburg MI might be able to make you a better offer.


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