How do balance transfer rates and fees affect my credit card APR?
There seem to be an unlimited number of credit card offers enticing you to transfer your balances from one or more accounts to a new credit card. However, all may not be as wonderful as it originally appears. Once again, considering balance transfer offers requires you to be diligent in your examination of all terms. For example, you see an offer that says your interest rate is zero per cent on balances transferred from another card. Fabulous. But – this rate will only apply to these balances for six months. Well, it’s still six months, which would be budget friendly. Then you notice that there is a 3% fee that applies to each balance being transferred. If you were transferring $15,000, this fee would be a healthy $450.00! That equals almost four months’ interest on a card with a low (for credit cards) 10% APR. Paying 0% for six months, but trading four months’ interest on the balance transfer may or may not be a good deal for you. You’ll have to play with your calculator or computer t
