How to balance transfer on a credit card

© Elzbieta Sekowska Analyzing tax assessment and credit card statement
© Elzbieta Sekowska
How does the low introductory rate apply?
If you are looking at best balance transfers on credit cards, make sure you read the fine print before committing.

How good is the low introductory rate offer?

So you are offered a really low introductory rate but how long is this applicable and what is the normal rate to pay after the offer expires? Even more importantly, does this rate apply to new purchases or balance transfers or both?

What are the associated fees involved?

Do you have to pay a fee when you transfer your balance? Keep in mind that some issuers charge up to 4 per cent.

Is there an annual fee to pay? What kind of fee would apply for over-the-limit usage and late payments?
Tips and warnings
The limits of a low introductory rate

Being offered a low introductory rate does not automatically mean that you qualify for it, not to mention the period of time that the rate actually applies for. Besides, are there any other terms that may cause you to be disqualified from the low rate? A slip on your part can potentially cause the rate to raise by as much as double its original low rate offer.

The danger of unexpected fees

Have you heard of initial balance transfers? Is it possible that fees apply after the initial balance transfer?
Steps to transfer the balance to a new credit card
Sign up for your new credit card and complete the balance transfer form. Take note that you send your minimum payment to the old issuer no later than the due date for as long as the transfer has yet to be approved. Once you receive approval of the balance transfer from the new issuer, give the old issuer a call to confirm on this matter. After this, you should receive your billing statement that amounts to zero from the old issuer. Finally, confirm that your old account is closed by writing to the old issuer and or receiving a letter from the old issuer.