A balance transfer card credit card could be a viable option for you if you have bad credit or have not paid your credit cards in the past. This type of credit card allows for you to transfer your existing balance to a new account at low interest rates during the initial period. You will pay a higher percentage on any balances not paid within the intro period.
Very low introductory APR
If you're trying to pay off a large balance, low introductory APR balance transfer credit cards are a great option. These cards often have no annual fee and a low introductory APR on balance transfers. These cards often offer rewards programs that could lead to cash back throughout the life of your account.
To determine if you are eligible for a low APR balance transfer credit card, you can check your credit score. If your credit score is less than 580, you are considered to have "poor credit." You should consider both the promotional period (and the APR) when applying for a balance transfer credit card with low interest rates.
No interest-free period
A few factors should be considered when you are choosing a balance-transfer credit card. Consider whether the card will offer an extended interest-free period. If the card does offer interest-free periods, you may end up paying much more than you originally intended. Also, be aware of your credit limit.
Your credit score has a big impact on whether you are approved for a balance transfer cards. Issuers will prefer applicants who have good credit, as this will translate into longer interest-free periods with lower interest rates. Your credit score will also determine how much debt you are allowed to transfer to a new credit card. This amount may be a fixed dollar amount or a percentage of your total limit. Every situation is different. However, generally speaking, the lower the credit score, the fewer credit card companies are likely to offer you a credit card.
Fees
You won't be able to save money with balance transfer credit card, but they can help you pay off your debt. It is better to work hard to pay down your credit card debts. A lower monthly payment means less interest over time. You can also find credit cards with a zero-percent intro APR offer.
Consumers who wish to reduce credit card debt or save money are attracted to balance transfer credit cards. Many offer an introductory period of interest-free of 6 to 18 months. Other cards offer longer introductory periods. There are many fees and conditions you should be aware of. You may lose your cardholder agreement and the introductory APR could be cancelled.
Limits
A balance transfer credit card for people with bad credit can help consolidate your debt. However, be aware that the limits may not be too high. A balance greater than $10,000 may prevent you from transferring the entire amount to your new card. You should look for a card with a credit limit of $12,000 or higher. Because a card with a greater credit limit is more likely than a card with a lower limit to accept the full balance transfer,
Your credit score, income and other factors will determine the credit limit for your balance transfer credit card with bad credit. Some cards allow you the transfer of up to 100% of credit limits, while others limit you to transfer between 75% and 100%. Be sure to ask for the limits before applying.
Alternatives
While balance transfer credit cards may be beneficial for people with low credit scores, they are not right for all. They can lower your monthly payments but are not the best way for you to pay off debt and improve your credit score. To improve your credit score, you can apply for a secured card and pay down your debt.
Another alternative to a balance transfer credit card is an arranged overdraft, which is an extension of your bank account. An arranged overdraft will allow you to withdraw money when your balance falls below a certain amount. Usually, the interest on this feature can be high, but some banks will allow you to set up an arranged overdraft interest-free.