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Hazards of choosing balance transfer
Advertisements for balance transfers can be highly confusing and one may end up finding it difficult to compare credit cards in order to determine the one that may be best suited for your individual requirements.
There are a number of factors to take into consideration before making a decision on balance transfer on credit cards.
0% purchases small print: Many cards offer a 0% balance transfer rate along with a 0% rate for purchases. Without a 0% offer rate for purchases, the implication is that any new purchases that you make on your card will be charging interest rate at the regular rate. Remember that the payments you make every month to your credit card will not cover the new purchases till the time the balance transfer has been paid completely.
Minimum monthly spend: Beware of a minimum monthly spend clause that some credit card issuers have. The card may offer 0% for the entire duration of the transferred balance but only on the condition of meeting the minimum monthly spend requirement. Failure to meet this minimum monthly spend would imply that all charges will be at the regular APR rate. Credit card info.com reports:
Adverts for balance transfers can be confusing and consequently it is difficult to compare all credit cards and find the best one for you. The uSwitch.com credit card comparison service makes this easy.
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