What To Look For:

Annual Percentage Rate (APR):

The APR is a measure of the cost of credit and is expressed as a yearly interest rate. Also, be sure to check out the "periodic rate," which is the rate the issuer applies to your outstanding balance in determining your finance charge for each billing period. The 0% or very low APR cards are the ones you want.

Grace Period:

A grace period is the time between the date of a purchase and the date when interest starts being charged on that purchase. If your card has a standard grace period, you have an opportunity to avoid finance charges by paying your current balance in full. Avoid any credit card with no grace period. (pun intended)

Transaction Fees & Other Charges:

Some issuers charge a fee if you use their card to obtain a cash advance, if you fail to make a payment on time or if you exceed your credit limit. Some may charge a flat fee every month whether you use the card or not. In order to avoid surprises and excess costs, understand what all the additional fees are before applying for any credit card. There are also balance transfer fees to consider. Offers with no balance transfer fees are the best, however, if you carry a high balance, in the long run, you are still going to be better off doing the transfer with the fee and taking advantage of the 0% rate over the next 6-12 months.

Next up - Be Responsible

Return to the Transfer Tips Main Page

Return to the Balance Transfers Cafe Home Page