These days, credit cards have become a hot commodity. The truth is, the average American household carries thousands of dollars in credit card debt. Debt that they will pay interest rates on. So, wouldn’t it be great if it was possible to reduce the interest rates on your credit cards without signing up for a debt settlement or debt consolidation program? Of course it would and, if you have kept your current cards in good standings, chances are you can with the help of balance transfer credit cards. Here’s how…
Reducing Credit Card Interest Rates With Balance Transfer Credit Cards
Step #1: Make A List Of The Debts You Want To Transfer – Before you can start reducing your interest rates, you will need to know how much debt you are going to transfer and what interest rates you currently pay. Therefore, simply make a list of all of your credit card debts. In your list, make sure to include the lender name, account number, balance, interest rate and pay to address for each of your accounts. It’s also best to order your list from highest interest rate credit card debt to lowest.
Step #2: Compare Balance Transfer Credit Card Offers – Now, it’s time to comb the market for offers that will provide lower long term interest rates than you are currently paying. To do a proper comparison, find 3 to 5 different offers that will offer lower long term rates than you are paying right now. Once you find them, follow these steps to compare the offers!
Step #3: Apply For The Offer That Fits You Best – When you find the card that you feel meets all of your needs and best fits your current financial position, it’s time to apply for the card. When applying, make sure to fill out all information requested and provide the answers in the most honest way possible. Some applications will ask if you would like to process a balance transfer on approval. If this is the case, click yes and fill out the information for the balances that you would like to transfer. The information requested should be listed on the list you created earlier.
Step #4: Transfer Your Balances – Finally, it’s time to transfer your balances and, the process is pretty simple. If you were not able to transfer your balances during the application process, simply wait until your card comes in the mail. Once it does, call the toll free customer service phone number printed on the back of the card. When a customer service representative asks how they can help you, ask them to process the transfers for you. They will ask a few questions about amounts, account numbers and pay to addresses and get the transfer processed for you!
Reducing your interest rates with balance transfer credit cards is a fairly simple process. The important part is making sure to use your credit cards properly in the future. I recently wrote a post for Penny Pinchin’ Mom that addresses why credit cards are widely abused in the United States. Read it here to avoid abusing your new balance transfer credit card.