Balance Transfer Credit Card: What Is It And Why You Might Need It

If you have ever heard of credit card debt management techniques, the chances are that you have heard about balance transfer credit cards. These cards allow cardholders to transfer their balance, including credit card debt from other credit cards.

The average American adult has four credit cards at any given time, and managing the debt on those credit cards may become challenging over time. Imagine if you could transfer your credit card debt to one single card to quickly and collectively pay off the debt. That is the premise behind balance transfer credit cards. However, there is more to this exciting type of card that makes it more appealing.

0% APR

Many balance transfer credit cards out there do not charge any introductory annual percentage rate (APR). Any person interested in paying off credit card debt wants to pay the minimum possible fee or interest rate. In a way, a balance transfer card allows you to secure a lower rate, which is great because you will pay less than what you would have paid if you decided to pay off your credit card debt on the different cards separately.

Note that the balance transfer card will feature a small fee charged to your new balance transfer card. Also, check whether the available balance transfer cards have an annual fee. Most of them charge an annual fee, which is usually waived in the first year.

Best balance transfer cards with 0% APR