There are many reasons why someone would look for a credit card balance transfer deal. The main one being that they have built up a large amount on their cards and want to transfer the balances for a better deal. That’s why credit card companies have such good deals on balance transfers because the initial offers are good but in the long run they will get their money back.
The majority of balance transfer deals will be for a limited time only. You’ll be able to transfer your balance of one or more cards and pay no interest for maybe a month or two. But then this period runs out and the interest begins. So it’s kind of like a payment break as you’ll have no interest to pay for the set period.
What’s the best credit card balance transfer deal?
This will really depend on how much you currently owe and how many cards you have. By consolidating several cards into one new card can be quite beneficial as you might get a 0% balance transfer period as well as a lower interest rate overall. It’s very similar to consolidating loans; you just have one large debtor instead of several small ones.
If you have a large balance then you will probably be able to get a low fixed interest rate. This means your monthly repayments will be lower and easier to manage. For smaller balances, the deals might be similar to what you have now.
So all in all, a credit card balance transfer deal can be beneficial for consolidating several cards. But if you just want a couple of months without paying interest, then transferring smaller balances can be useful too. Just always be aware of all the fees and conditions of each card. The more you can find out and compare with other cards, the better deal you will be able to get.