Credit card bills are something that the average American is no stranger to these days. The truth is, just about all of us have a credit card in our pocket or pocket book! Paying these bills is just something that we’ve become accustomed to. But, what if there was a simple way to cut the costs associated with credit card debt? Well, there is!

The best way to cut costs on your credit card bills is to reduce your interest rate. If you are experiencing a financial hardship, the best way to do this is to work directly with your lender on a credit card hardship program that fits your need. I recently wrote a post for Top Finance Blog on hardship programs. If you are not facing a financial hardship, the reduction of your interest rates can be done through balance transfer credit cards in most cases. Let’s look at this option in more detail.

Balance transfer credit cards are more or less the same as most other credit cards you will find on the market today. They are small pieces of plastic that allow you to make purchases and attach the created debt to your account. The big difference here is that these cards allow you to transfer balances to them. Ultimately, you are able to reduce your interest rates by using these cards to payoff other higher interest rate credit card accounts. You can also use these cards to consolidate multiple balances!

All this being said, to reduce your interest rate, chances are, all you will need to do is compare the different balance transfer offers out there and apply for the best one. However, doing a good comparison is crucial! Here are a few factors that you should make sure that you compare when you go shopping for a balance transfer credit card:

Issuing Lenders

The first factor that you should compare as you shop for any type of credit card including balance transfer credit cards is the issuing lenders. As with any industry, you will soon find that some lenders are much better to work with than others. Before applying for a credit card, you should make sure that you know you are dealing with a good lender. You can do this by reading reviews through a simple Google search!

Long Term Rates

Promotional rates and rewards are fun to look at but, the bottom line is, your long term rates are what matters! As you compare balance transfer credit cards, look for offers with lower interest rates than your current card. Now, out of the offers you’ve found, sort through and find a few of the lowest rates available to you!

Transfer Fees

It is important to remember that transferring a balance is a service. As with any other service, you will pay to have a balance transferred! In most cases, transfer fees will range from 3% to 5% of the total debt being transferred. Make sure to compare the different offers to try and find the lowest transfer fee possible.

Other Fees

As with any other type of credit card, each balance transfer credit card will come with it’s own list of fees that you will be charged should you decide to use it. Often times, these fees will include annual, over-limit, late payment, foreign transaction and several other types of fees! Before you ever apply for any credit card, you should always take the time to read and compare the rates and fee section of the terms and conditions for each offer you are interested in!

Rewards and Promotions

Finally, it’s time to compare the fun factors associated with balance transfer credit cards, the promotions and rewards. These factors serve as a great tie-breaker when you have a few different enticingly beneficial offers to choose from!

Saving money on your credit cards is all about paying a lower interest rate. The good news is, it’s pretty simple to do. I hope that you’ve enjoyed my article and it has inspired you to fight for lower rates on your credit card debt!

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