Readers: This is article 7 of 25 from my no-nonsense “Credit Card Basics” quick-reference series.
Balance transfer cards are specifically targeted for those who are looking to consolidate debts spread across multiple credit cards by transferring them to a single credit card account. Best of all, you can transfer balances from gas, store and other types of credit cards. Sometimes a fee is required to make the transfer but not always.
To determine if a balance transfer card is right for you, consider the following pros and cons:
You should avoid getting a balance transfer credit card if:
- You have trouble controlling your spending
- You lack the discipline required to pay off your credit card bill in full on a monthly basis
However, if youre financially responsible, balance transfer credit cards offer the following perks:
- Improved money management. Consolidating multiple credit card balances into a single card reduces the number of bills you have to sift through and that makes it easier to track your expenses.
- Lower costs. Transferring your higher-interest card balances to a balance transfer credit card with a lower rate, will save you money, thereby allowing you to pay down your debt faster.
Photo Credit: GotCredit