Can You Benefit from Balance Transfer Credit Card Deals with Fixed APR?

First months of the year appear to be a busy time for creditors as well as for cardholders. It is believed that credit users have spent up on holiday purchases, and it's high time to pay off the debt. So, don't be surprised to find a balance transfer credit card offer waiting for you in the mailbox. Most obviously, you'll find a credit card offer with tempting features and rates. Why don't you consolidate your credit card debt with a balance transfer card? However, balance transfer plastics differ much from one another. You may also pay attention to fixed APR balance transfer credit card offers. Are they worthwhile and for whom? Let's try to clear it up!

A fixed APR balance transfer card is a plastic that charges a fixed interest rate for a certain period of time. This period is stipulated at your credit card agreement and it may vary from the year to the life of your account.

On the one hand, these credit card deals seem to be a great idea. On the other, the existence of balance transfer cards with the introductory rates of zero percent makes this point arguable. The idea that you may pay off the entire balance paying no interest looks much more ingenious than paying the fixed interest rate for years.

Actually, much depends on the way you handle credit. As the proverb goes, one man's meat is another man's poison. You may save a lot using a balance transfer plastic with low interest rates, or to be more exact with zero interest rates.

Let's assume you decide to transfer the balance of $5,000 with a 13.24% APR on a balance transfer card with a 0% introductory APR for 12 months. This way, you save approximately $620. Shifting the same balance onto the card with the fixed APR of 4.9% for life, you will save about $400. The difference is obvious!

However, we must accept that balance transfer games may be a hard nut to crack for some credit customers. First and foremost, it's your credit history that counts when you apply for a balance transfer credit card. Cardholders with good and excellent credit ratings may count on these cards.

Besides, there's no guarantee that you will be allowed to get another balance transfer plastic with a 0% introductory APR. The choice of the most suitable balance transfer card depends on your financial goals. If you decide to put an end to your debts, and pay off your entire debt for the year, then take advantage of the card implying introductory interest rates.

And if you don't want to tempt fate, you'd better apply for the card with a fixed APR. After all, fixed APR balance transfer credit cards are definitely a better choice in the long term in comparison with repaying credit card debts at higher interest rates.

Still, the best option is to pay off the balance as soon as possible. And balance transfer cards with introductory options are just what the doctor ordered for those who determine to live debt free. If you are one of those customers, feel free to apply for balance transfer credit cards.

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