Choosing the Right Credit Card
A low balance transfer credit card enables a customer to transfer an existing credit card balance and start repaying the amount owed, usually at a much lower rate. Some low balance cards even offer 0 percent interest, over a set term.
Some credit card holders realize that their credit card debt may be too high and start looking for better payment alternatives to save money. Switching to a low balance transfer credit card that charges a much lower rate of interest than your existing account is one helpful option.
Since paying off debts at lower interest rates is appealing, there have been several low balance credit cards on offer.
Balance transfer cards offer the customer the option to transfer their credit card debt to the new card and pay a lower rate of interest. This can be a tempting offer but the customer has to establish if there is a particular term or limited amount of time to which the lower rate applies.
Customers considering the credit card switch to a low balance card should ask:
If there is a reasonably large debt to transfer and you expect it will take a fair amount of time to clear the debt and the interest rate provided is substantially lower, you might consider using the low balance credit card.
However, if you are not likely to pay off the debt in the introductory period offered by the low balance credit card provider, you may want to look at other options to clearing your debt, such as a line of credit. Constantly applying for new credit cards that have an introductory low balance transfer rate may be ill advised. It could have the potential of negatively impacting your credit score given that there is an enquiry on your credit file every time you apply for a new card. Furthermore, it can become increasingly difficult to manage many different cards.