Balance transfer credit cards
Balance transfer credit cards can help Canadians make their credit card debt much more manageable.
Have You Considered Balance Transfer Credit Cards?
Balance transfer credit cards are credit cards that make it more appealing for consumers to move their outstanding credit card balances on to them.
For example, one such credit card might offer balance transfers at reduced cost compared to their competitors, which can be an important concern because balance transfer costs are sometimes percentage-based. Likewise, another such credit card might offer a short period of either no interest or low interest on the first balance transfer, thus making it that much easier for the consumer to pay off their credit card debt. Based on this, it is clear that balance transfer credit cards can have a wide range of benefits, which in turn, can make them useful under a wide range of circumstances.
When Should You Consider a Balance Transfer for Your Credit Card?
Generally speaking, you should perform a balance transfer when that would reduce your credit card costs. For instance, if you have the option to transfer your balance from one credit card to another credit card with a lower interest rate, you should take it so long as the balance transfer costs won’t exceed your savings on interest. However, it is important to note that there are some factors that can make you even better-suited for the use of a balance transfer.
One example is if you have outstanding balances on multiple credit cards that make it more difficult for you to keep track of them. After all, you have to remember the due dates for each of those credit cards, meaning that it is not unknown for people to slip up by forgetting to make a payment from time to time. Fortunately, if you move those outstanding balances onto the same credit card, that should eliminate that particular problem.
Another example is if you have the resolve needed to focus on paying down your credit card debt for the duration of the bonus period on the credit card to which it has been moved. This is important because less interest means that more of the payments go towards the principal, which can produce huge savings in the long run. Unfortunately, there are a lot of people who fail to make the most use of such opportunities, thus wasting the chance. Even worse, there are people who actually use balance transfers as an excuse to start racking up more debt on their other credit cards, which is a huge no-no because they haven’t actually paid off their existing credit card debt.
How Can You Choose the Right Credit Card for Your Balance Transfer?
Still, so long as you are resolved to make good use of a credit card with balance transfer benefits, you can reap a great deal of benefit in the process. However, finding the right credit card is much easier said than done, not least because there is a wide range of credit cards from a wide range of credit card issuers out there. Certainly, you can look through each of your options on your own but that will be a time-consuming process because of the sheer number of credit cards that you will need to look through. Moreover, you might miss out on some of the opportunities that are available to you, particularly if you are not aware of all of the credit card issuers that can be found in Canada.
Why Should You Choose Us?
Luckily, Bonsai Finance is here to provide you with a much-needed helping hand by connecting you with the financial services providers that are most suitable for your particular needs. Our expertise, our experience, and our search engines combine to steer you in the right direction so that you can maximize your chances of finding the right financial product for your need while avoiding the potential pitfalls.