What's the Best Balance Transfer Card?

One of the most common reasons that people apply for a new credit card is that they've decided to transfer the balance from an existing credit card account to one with a lower interest rate.  That reason may be undergoing some powerful changes in the upcoming months, say financial experts. The credit card companies are coming to realize that many people are playing hopscotch with their credit card balances, moving them from one credit card to another to avoid paying interest on the money borrowed. So does that mean that the days of the balance transfer credit card are numbered?

Again, say the financial experts - no, though the particulars of the credit card balance transfer offers may change. Until they do, though, there are some very good reasons to compare credit card offers to lower your existing interest rate by accepting a balance transfer credit card offer. Not all balance transfer credit card offers are as good as they look on the surface.

Suppose you're carrying a balance on a credit card with a 14% interest rate and no annual fee. You're offered a chance to transfer that balance to a credit card with a 3.9% introductory rate. At the same time, you've got an offer of a 0% balance transfer credit card with an introductory rate for nine months. Which is the best credit card offer? How do you compare credit card features to decide?

There are several things to consider - and how important they are depends on your own circumstances.

1. Can you pay the entire balance off during the introductory period?
   The ideal situation is to transfer your balance to a card with a 0% introductory interest rate that lasts long enough to pay off your entire balance before it begins to accrue interest. The best credit card for that scenario is the one with the longest introductory rate on balance transfers.
2. Will you have to pay a balance transfer fee?
   Most of the time, the new credit card will charge a balance transfer fee for making the transfer. Before you decide on the best credit card for the transfer - or even if you SHOULD transfer - you should figure out how much you'll be paying in interest charges if you don't move the balance. If the balance transfer fee is close to the amount of your upcoming interest charges, it may not be worth it to transfer your balance to a new card.
3. How do you decide between two balance transfer credit cards with the same introductory period and rate?
   Compare credit card features side by side. Is there an annual fee? Is one less than the other? What is the typical annual percentage rate AFTER the introductory period? How does the billing cycle work for each credit card? What about late fees and fees for cash advances? Do either of the credit cards offer special use incentives?

At www.moneyeverything.com you can compare balance transfer credit card features side by side and prioritize them. By doing this comparison you'll find it easy to decide which is the best credit card for you.