Balance Transfer Credit Cards

In the cutthroat credit card industry, consumers can choose from a variety of balance transfer offers with zero-percent interest for three, six, or even 12 months. Taking advantage of these offers can allow you to reduce the burden of high-balance debt on other accounts or even build interest in a savings account or mutual fund with a zero-percent APR on borrowed money. More...

Paying off High-Interest Debt with Balance Transfer Credit Cards

Using low- to no-interest transfer offers is a good way to consolidate higher APR debt while avoiding the ding of monthly finance charges. Remember, the balance transfer game should not be played if you're planning to apply for a home or car loan, since excessive inquiries lower your FICO score.

If you're not worried about inquiries, take time to understand complex terms before choosing a charge account. Issuers may advertise a zero-percent introductory rate, but the card may come with hefty balance transfer fees that offset your interest savings.

Beating Card Issuers at Their Own Game

MSN Money warns consumers against the risks of credit card arbitrage--exploiting interest-rate differences to borrow low and invest high. While this game may seem exciting, one missed payment or term misunderstanding can cost you hundreds in unpaid interest. If you're using charge accounts to make some quick cash, avoid putting it in stocks or high-risk investments. Stick to savings and money-market accounts to ensure that you'll safely pay off borrowed balances before low interest rates expire.

Compare a variety of balance transfer cards online at CreditCardApplications.com. The website compares merchant accounts by category and issuer.