Transferring your credit card debts to a balance transfer credit card is the best alternative for people who want to quickly pay off their credit cards. Nowadays, there are lots of balance credit cards with promotional APR intro period during which you don’t need to pay any interest on the balance. So, consolidating your credit card debts on a balance transfer credit card can help you to save thousands of dollars on the interest rates. The following are the five things to consider when you want to apply for a balance transfer card.

1. Promotional APR
The first thing to consider is how long will the promotional zero percent APR interest rate lasts. A good credit card has a long promotional zero percent APR period that can last up to 18 – 21 months. The intro period must be long enough for you to pay back all the debt in full. Before you sign up, make sure you confirm that the zero percent promotional APR applies to balance transfer. This is because some cards only offer zero percent promotional APR for purchases. It is important that you note down the promotional APR expiry date so that you know you have how much time you have to pay back your credit card debt.

2. Don’t Plan to Apply Another Credit Card After the Intro Period Ends
You should not think of applying a new credit card to transfer your balance at the end of the expiry as it will damage your credit score. If you keep opening new low-interest accounts but your debt level stays the same, you will be labeled as a borrower in the risky group. This will make it hard for you to apply for a car loan in the future.

3. Transfer fee
Many balance transfer cards charge a transfer fee of 3% ($5 minimum). The transfer fee is a charge whenever you initiate a transfer of the balance from another credit card. Some cards will waive the transfer fee if the balance is transfer within a period for example 60 or 90 days. If you are not sure about the fees, you should call the hotline number to ask the representative to outline the full list of fees that you are entitled to pay. To make sure it is worthy to sign up for the credit card, you need to do some calculation to make sure that the fees you pay is lesser than paying interest on your old credit card

4. Find Out How Payments are Allocated
You should find out from the credit card company how they allocate your payment. Usually, they will allocate the excess amount to the credit card debt with the highest interest

5. Check Your Credit Score

It is important to first check your credit score to determine if it is in an acceptable range for getting approved a good credit card. The best term of the balance transfer card is reserved for applicants with good or excellent credit score. You can consider waiting for a few months while you increase your credit score by paying bills promptly if you have a low credit score.