Rebuilding your credit may seem daunting — but it does not have to be. If you are feeling trapped, you’re not alone. A lot of people with bad or no credit are looking for solutions to improve their financial health.
One key is a balance transfer credit card that lets you move your current debt onto a new card with a low introductory interest rate. A card with 0 percent interest for 6 months gives you the chance to make payments on your debt without the balance accruing interest.
If your creditworthiness can use some help, you can find a solution with a balance transfer card. Credit card balances appear to be never-ending with the mounting interest added to your balance every month. If you’ve high balances and APRs, paying the minimum monthly repayments will not help.
Balance transfer cards momentarily lower your APR so you might make a dent in your debt. If you have got a credit score between 300 and 579, it could be hard to find a balance transfer card. You will do better with a credit point higher than 600. Here’s the list what you may look for when comparing balance transfer offers:
Credit score: Many offers require a credit score of 600 or upwards, so carefully check the eligibility before you apply.
APR: Search an offer that has a lower APR than the credit card or loan you are paying.
Transfer fees: Most cards come with transfer fees between 2 and 4 percent of the amount you transfer.
Length of offer: Low APR offers are just for a certain amount of time, then the APR has come back to a higher rate. Compare if that come back rate is lower than what you pay already to make the transfer worth it.