If you are one of the many consumers carrying a balance on your credit card than a balance transfer could benefit you greatly. Not only can it save money by reducing the principal, a balance transfer also has the ability to lower the monthly payments due to the credit card account.

In most cases, the applicant will have to be eligible for an introductory offer based on the following factors;

•    Credit history and FICO score
•    Payment history with the company
•    Employment history

Many credit card companies offer 0% APR for the first twelve months to the card in which the balance is transferred to. This is a great chance for the card holder to take advantage of the interest free financing, which creates a great time to pay off the credit card.

Although there is a fee for the balance transfer, the majority of credit card companies cap this fee at a maximum of about $75.00. Did you know that transferring $5,000.00 from one credit card to another could save you upwards of one thousand dollars in interest, each month? Not only that, but the valuable money that is applied to the credit card debt each month goes directly to the principal, reducing the debt quicker than applying an amount to paying interest and principle combined.

Balance transfers are reliant on specific conditions that must be met. These conditions include payments being on time each and every month as well as ensuring that no payments are missed. Once a payment arrives late, or a payment is missed than the interest rate can increase to the regular rate: upwards of twenty percent.

Should you transfer your balance if you are carrying a small balance? Chances are, if you have a decent interest rate and are carrying a small balance, a transfer is not going to make that much of a difference, if you are looking to switch cards than a rewards program might yield better results than the cents being saved on a balance transfer.

However, if you are entertaining the thought of making a large purchase through the next twelve months and would like twelve months of interest free payments, than a balance transfer to a different credit card may be an option to consider. Many credit cards that offer this rate for balance transfers allow the same length of time for interest free purchases.

Did you know that there are many websites available which allow the customer to compare the 0% interest rates with the length of time offered from each company? This is essential, as 0% APR introductory offers can vary from three to twelve months. Be sure to shop around and be an informed customer to find the best rate available.

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