Credit card companies offer the opportunity to transfer high interest rate credit cards to a lower Annual Percentage Rate (APR). Some lenders introduce a teaser rates for you to sign up with. In many cases, this low APR will only last for a set amount of time. The amount of time that the low rate lasts is usually from 6-18 months, depending on the company. These rates can help you to pay down your debts faster, but you need to make sure you will not pay more money in the long run.
While a low interest rate may seem enticing the credit card company may charge you a fee for the balance transfer. This is usually 3-4 percent of the amount that you transfer. If you transferred $10,000 at three percent, the company would add $300.00 to the principal.
Before signing on you should see if you will save that much money in interest before you take the deal.
Gather your current information and use our Credit Card Balance Transfer Calculator to help determine if a balance transfer is a good option for you.