Posted on May - 11 - 2010
Pick the Best Balance Transfer Card, Not the Best Deal
There are a lot of tempting balance transfer credit card deals on the market today, with one major company offering a 0% APR for 18 months. Unfortunately, the best balance transfer deals aren’t necessarily the best choice for many.
In the past, it was relatively easy to move balances from one credit card to another when 0% interest rate deals expired. This is not the case today. Since the start of the Great Recession, credit card companies have tightened approval criteria substantially. They continued to do so last month, despite signs of economic recovery.
Because landing a new 0% balance transfer credit card at the end of the 0% period is far from a sure thing today, its important to choose a good credit card company rather than just an eye-popping deal. If you go with the best short term deal, you may save more money in the short term. But if you know you will not be able to repay your balance at the end of the 0% rate period, you could spend significantly more in interest if you wind up with a lesser overall deal from a lesser credit card company.
Ultimately, the key to finding the right zero percent balance transfer credit card is to assess your situation carefully. If you can repay your balance in a year (or 18 months, if you qualify for the longest 0% balance transfer offers), then by all means take the longest deal available.
But if you know you will need a few years, you may want to forgo a few extra months with a 0% rate or a lower balance transfer fee and stick with a credit card that will treat you well in the long term.
-Jeffrey Weber
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