Should You Transfer Your Credit Card Balance to Another Low Rate Card?

A Credit Article Contributed by Augusta Wilson

What is a Low Rate Credit Card?

Simply put, a low rate credit card is a credit card which carries a low, long term APR, or annual percentage rate. Different types of credit cards have different APRs; for example, some card companies offer visas or mastercards deals with a 0% introductory percentage rate, for a limited period of time, like six months or even up to a year. You do have to be careful, however, as some deals start out with a very good APR, and then jump up to as high as 15%, thereafter. Many companies do offer great long term rates, for qualified borrowers.

Why Should I Transfer My Existing Credit Card Balance to Another Low Rate Card?

Because it will save you money, that's why! If you are currently carrying a balance on a card with an APR of, say, 14.5%, and you transfer the balance to a card with an APR of only 8%, you will almost half your finance charge. Over the life of the loan, this could save you hundreds, or even thousands, of dollars.

Where Can I Apply for a Low Rate Credit Card?

There are thousands of credit cards offered on the internet. But it can be real challenge finding the offer that is just right for you. With so many offers to choose from, how do you know which is best for you? In order to determine this, you should decide what sort of APR you want, and what sort of credit line you may be eligible for. If you have an excellent credit score, you will have many deals from which to choose.

If your credit is not that great, you need to be realistic about what offers will be open to you. There are many offers which are best avoided altogether. These offers are useless, especially when you plan to use it for a balance transfer. For example, one credit card has an annual fee of over $200, yet rarely grants a credit limit over $250. This credit card company also charges a $10 application fee.

So, when you are looking around for that great deal, remember to get out your glasses- or magnifying glass, if need be- and read that fine print!

But there are some good deals out there, many designed with the sole purpose of balance transfers. Such offers usually boast a 0% introductory annual percentage rate, and no annual fee, and generous credit lines. There is also the added bonus of cash back incentives or generous rewards programs, like earning air miles or gas points. Banks such as Chase, Citibank, and Bank of America, have great programs for qualified applicants.

Just choose the one that you want, log into the secure website, and apply. Once your approved, you can easily transfer the balance of your old card, to your new account. But remember, this plan is meant to help save you money, and it's therefore important not to use the old cards, running up new debts!