Manage your credit card debts with balance transfer credit cards

The perks of using a credit card are that you have funds at your disposal whenever you want, you can build up your credit score, and take advantages of cash back and other rewards. In spite of these benefits, credit cards may lead to an accumulation of debts if you do not pay the balances before the due date. You can manage the debt or debit balance accumulated on your credit card by transferring the debt of one card to another card. These cards into which your debts are transferred are called balance transfer credit cards; no-fee balance transfer cards are one of the popular ways to save money.

Here are a few basic things you need to know before applying for a balance transfer credit card.

How to apply for balance transfer credit cards with no fee?

• Create a shortlist of balance transfer credit cards with no fee.

Who should use balance transfer credit cards?

• If you have racked up a high debt on your current credit card due to high monthly interest payments
• If your credit score is in good shape
• If you want to save money by paying lower interest rates and low intro APR
• If you want to avail of promotional benefits of a new credit card when they are not available on your current credit card. However, signup bonuses are not available with balance transfer cards with no fees.

What are the factors to consider while looking for balance transfer credit cards with no fee?

• Compare the introductory interest rates.
• Check the Annual Percentage Rate (APR) that is applicable after the intro rate expires.
• Check the minimum monthly payment that you would have to make.
• Read the fine print to know whether there is any limit on the balance transfer amount.

Which are the popular balance transfer credit cards?

• Chase Slate
• Citi Simplicity card
• Citi Diamond Preferred card
• Discover it card
• Capital One Platinum Prestige card
• U.S. Bank Visa Platinum Card
• U.S. Bank Perks + Visa Signature Card

What are the risks of using balance transfer credit cards?

• Be wary of APR that may be applicable after the promotional offer expires.
• The rewards offered to you can tempt you to spend more with the new credit card, thereby adding to your pre-existing debt.
• If you close your old credit account after the balance transfer, your credit score may plummet.
• There might be additional fees involved in balance transfer credits cards; no fee during credit transfer does not mean that there is no late payment fee or annual fee. Read the fine print carefully.