Credit cards with low interest rates always seem so alluring. Especially when 0% balance transfers are staked, the offers are considered to be great deals! But before applying for a card, find out more about these deals not to get into a financial trap.
Mind, credit card companies will never miss a chance to earn money on you, they can easily imply big charges as soon as the first purchases are made on a balance transfer card. But you can avoid these charges. Let's take a closer look at balance transfers.
Basically, credit card companies let you transfer the balance from your current credit card on a card issued by another company. So, if you have a Visa card with rather high ongoing APR, you can transfer your balance onto a MasterCard or a Discover card with lower interest rate. Besides, you will get a certain introductory period with 0% interest rate on balance transfer. Many of the offers have balance transfer fee, but if you take your time to shop around you are likely to find an offer with zero balance transfer fee.
But before to apply for a credit card with 0% APR on balance transfers, make sure that after the introductory period is over, your credit card rates won't skyrocket. Otherwise, you will get one more credit card with high interest rates. So, read the fine print in your credit card agreement.
Besides, you can stick to the following two ways to avoid high interest charges:
• Do not make any payments on your balance transfer credit card, since you have transferred your balance. Though, it is a rather tough way to use your new card, as you will be probably limited in using the credit card in case of deficiency and will have to make purchases on it from time to time.
• You can get two credit cards. One card will be a 0% balance transfer credit card, and the second one will be a low interest rate card or a reward card.
For the balance transfer, try to find a credit card deal that will come with no balance transfer fee and will be a no annual fee credit card, thus, you will save more. Besides, you can find an offer that will give your low interest rates with prolonged introductory period up to 6 or 15 months. Mind that even the best credit cards demand making few purchases on the card every month, so you will benefit a lot if you find a credit card that involves no minimum payments.
Use the second credit card to make purchases. Low interest rate credit cards will let you save on interest charges, and if you obtain a reward card, you will earn some cash back, gifts, or other rewards making your everyday purchases.
Let's sum up. You transfer your balance on a low interest credit card and follow a repayment plan. So, you make a great credit card deal and can use your new card according to your life style. But mind, even low interest rate credit cards demand discipline about the payments and spending on credit cards.

BlueWaterArticles.com: - How to Benefit From Balance Transfer Credit Cards?

About the Author

Zurie Turgeon is the author of numerous articles on credit cards. Her recent article is devoted to secured credit cards.