Different Types of Balance Transfer Credit Cards

Credit cards today come in many options, each designed to meet the needs of the borrower. The two most common types of cards are balance transfer cards and low interest cards. These are also the two types of credit cards that are most quickly available from banks and financial institutions as well as being the most common. Of these two popular cards, the balance transfer credit card is the most sought after card, particularly with the many different options available, depending on what type you get.




What is a Balance Transfer Credit Card?
 
A balance transfer credit card is a card that allows users to transfer balances from higher interest cards onto a lower interest rate card. It's very typical today for cards offering transfer of balances to offer an introductory APR of 0%. This APR, which is known as a "teaser" rate, may last anywhere from one month to a year or more. These cards give borrowers the chance to save hundreds of dollars in interest charges as well as make one monthly payment rather than several. It's very important that you read the terms and conditions of any card you plan to get as the terms vary by credit card.  
 
Benefits Offered with Balance Transfer Credit Cards
 
In addition to saving money on interest charges and having lower monthly payments, balance transfer cards also come with many other benefits, depending on the type of credit card it may be. Some of the benefits you may find with these convenient credit cards include rewards, bonus point and cashback. Rewards are paid in the way of points that can be used to purchase merchandise at different stores or for airfare or travel expenses.
 
Bonus points work similar to reward points. For each dollar you spend on your credit card you're given one or two bonus points, which also can be used towards the purchase of merchandise. Sometimes these purchases are limited to certain stores or type of merchandise. Cash back is another great benefit you can get with many of the balance transfer credit cards. For each dollar you spend on your credit card, you get a certain percentage back. Some of the cards will give up to 20% of your purchases made at specific online merchants, 5 % on travel expenses, home improvement & similar purchases and 1% on miscellaneous purchases.
 
The combination of 0% introductory interest rate plus the cash back you make on certain purchases make many of these balance transfer cards a great way to save money, particularly for individuals that pay their balances in full each month. Some of these credit card offers are limited to those with good credit and become an easy way to enjoy your credit card and make money.
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