How to Avoid High % APR Fees With A Credit Card Balance Transfer

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By Joselito Sering
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Many credit cards offer short term 0-percent APR introductory or fixed low-percent APR on balance transfers for qualified consumers. This allows for higher percent APR credit card account balances to rest in a new account with 0 percent to fixed low introductory rate for the duration of the introductory period. Payments to this new account would apply to the principle instead of interest and can dramatically lower your balance during that period, giving you a better chance of paying off the remaining balance without added interest fees.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Internet Access
Credit Card Information
Time Management

Step 1

Gather current statements from higher percent APR accounts and locate necessary information to make a balance transfer. Apply for a new credit card (Visa, MasterCard, American Express or Discover) by first choosing the best credit card offer you find (see Resources).
Step 2

Choose Balance Transfer section and review account information for each credit card offer. Click "Apply Here" when ready. Fill in all necessary information and select Balance Transfer option when given. Provide all necessary information for the balance transfer, including credit account information and balance transfer amount desired.
Step 3

Some online applications have instant approvals but balance transfers may take several days or weeks to process. During this interim, the balance holding account will accumulate interest, which will still need to be paid. After a balance transfer is fully processed, check with the higher percent APR account for any remaining balances and pay off before closing.

Tips & Warnings

0-percent introductory rates eventually expire. Some durations may last for 12 months, but most are six months before the regular APR begins to apply to the balance transferred. Pay off as much as you can during this period with the objective of becoming debt free. If a balance remains at the end of the introductory period, repeat the process again by applying for a new balance transfer into a new 0-percent APR introductory offer.
DO NOT MISS OR BE LATE WITH ANY PAYMENTS. Delinquency in payments would automatically end your 0 or low percent APR introductory offer and will result in additional late fees, ruining the point of saving money. It will also have a negative effect on your credit history and rating.

Resources