How Do Low Rate Balance Transfer Credit Cards Work?

Learn how low balance transfer credit cards work and how to determine the best deals. Note the main pitfall of purchases on a balance transfer credit card. Look at the St.George Vertigo MasterCard as a big all-rounder for balance transfers and future purchases.

A low balance transfer credit card is used when an outstanding balance on another credit card in a regular interest. The process is that you are applying for the new low balance transfer, and submit the application to transfer the balance on the application form itself. This applies to amounts that are expected to take more than a few months to pay it off. Any less than that, and you will probably pay more on the new card annual fee than you save on interest rates.

Making a balance transfer will allow for faster repayment of the balance, because you're down to pay the money to interest it, or alternatively you can take more time to pay it off, because you know that the interest can not save as knowing punitive directly . In the latter scenario, such as balance transfers deals for a limited time, you should always aim at the balance before the offer ends and the interest rate is significantly again, the regular card.