A balance transfer credit card is an option for those with poor credit who have not paid off their credit cards in a while. This type credit card allows the transfer of your balance to another account at a low-interest rate during the initial period. After the intro period, any balance that isn't paid in its entirety will attract a higher interest.
APR introductory low
Low introductory APR balance transfers credit cards can be a great choice if you are trying to pay off large amounts. These cards are often free of annual fees and offer balance transfer rates at a low APR. These cards offer rewards programs which can lead to cashback over the term of the account.
Check your credit score and see if it qualifies you for a low-introductory APR balance credit card. If your score is under 580, you're considered to have "poor" credit. You should consider both the promotional period (and the APR) when applying for a balance transfer credit card with low interest rates.
No interest-free period
You should take into account a number of factors when choosing a balance transfer card. The most important factor to consider is whether the card offers an interest-free period. If the card does offer interest-free periods, you may end up paying much more than you originally intended. You should also pay attention to the credit limit of the card.
Your credit score can have a significant impact on your ability to qualify for a balance-transfer card. Issuers tend to prefer applicants with high credit scores as they offer lower interest rates and longer interest-free periods. Credit scores will affect the maximum amount you can transfer onto a new card. This amount can be fixed dollar or percentage of your total limit. Although each case is different, it's generally true that credit card companies will offer less to you the lower your credit score.
Fees
Although balance transfer credit cards might save you some money, they will not help you get rid of your debt. You need to make an effort to repay your credit cards. A lower monthly payment means less interest over time. You may also be able to find credit cards with an intro APR of zero percent.
Consumers who are trying to reduce their credit card debt while saving money will love balance transfer credit credit cards. Many offer an introductory interest-free period from six to 18 month. Other cards offer longer initial periods. However, there are several fees and other conditions that you must be aware of. You may lose your cardholder agreement and the introductory APR could be cancelled.
Limits
Getting a balance transfer credit card for bad credit can help you consolidate your debt, but be careful that the limits aren't too low. If you have a balance of $10,000, you might not be able to transfer the full amount to your new card. You should look for a card with a credit limit of $12,000 or higher. A credit card with a higher limit will accept the whole balance transfer.
The credit limit on your balance transfer credit card for bad credit will be based on your credit score and other factors, such as your income. Some cards let you transfer up to 100% of your credit limit, while others will only allow you to transfer up to seventy five percent. Before applying for a card, it is important to check the limits.
Alternatives
Although balance transfer credit cards are useful for those with bad credit, they may not be right for everyone. They may lower your monthly bills, but balance transfer cards won't be the best way of paying off debt or improving your credit score. For a better credit score, apply for a secured debit card to pay off your debt.
An alternative to a credit card balance transfer is an arranged-overdraft. This is an extension on your bank account. An arranged-overdraft allows you withdraw money when your account balance falls below certain amounts. While interest can be high on this feature, banks might allow you to set up an overdraft interestfree.