Balance Transfers Credit Cards

Transferring balances from one credit card to another is a very common occurrence amongst credit card holders. The principle is that it allows credit card holders to transfer their current credit card debt to a different credit card. The general incentive is for the most part - a lower interest rate. The new credit card company then settles the old credit card debt and transfers it to the new one.
 
The ultimate decision that you will face is whether to go for a 0% balance transfer rate for a set period or opt for a lifetime balance transfer. Many card holders spend their time going from one credit card provider to another every time the 0% set period offer of balance transfer ends.

The potential problem here is many people forget to switch to another 0% balance transfer deal when the previous offer has expired and end up paying a high interest rate.

Very few credit card providers offer a 0% balance transfer fee for free these days and the costs will vary up to 3% and sometimes beyond that even. Couple that with the fact that people forget to switch credit cards and it can work out to be quite costly.

Lifetime Balance Transfers

Lifetime balance transfers are not literally for life but rather for a lower APR which extends to around roughly five years. Those credit card holders that have a credit card with a large balance on it will benefit from using this strategy. Although lifetime balance transfer cards don’t mean that you won’t pay any interest payments at all, they do present a long-term substitute.

Lifetime balance transfer credit cards offer really very low APR on balance transfers - with typical rates being between 3.9 per cent and seven per cent APR.

If you don’t want the hassle of finding new credit cards with 0% offers every time and you have a large debt – then a lifetime balance transfer is the safer bet. This is particularly so if you know you won’t be able to pay off the total amount of a large credit card debt prior to the end of a zero per cent balance transfer deal. Subsequently, if you are able to pay your balance off within the time period given, you’ll be able to clear your debt at a low interest rate.

However, it is no recommended to use a lifetime balance transfer card for day to day spending. The reason for this is that due to the way that payments against your credit card are tiered, the cheapest debts will always be paid off first and foremost.

In effect, what this actually really means is future spending on a balance transferred credit card (even if you have a 0% on purchases for whatever period) your card repayments will go against your balance transfer, not your latest spending. Then, once your 0% purchases offer has ended, you will be charged the much higher, standard rate on all your purchases.

Search around to find a deal that will suit your circumstances and will not end up costing you more finically in the long run.