3 Things to Remember When Filling Out a Balance Transfer Credit Card Application

1. Is That Rate Only Introductory?

That low interest rate looks really good, doesn't it? Especially in a day and age when credit card companies are pushing rates up as if their lives depended on it (and sometimes they do). If that rate looks too good to be true, it just might be.

Before you fill out any balance transfer credit card application make sure you understand the terms of that interest rate inside and out. The rate you're looking at may just be an introductory rate that jumps up after a few months. That low rate won't look so great if it more than doubles before your balance is paid off.

2. Make Your Payments

Hey, just because you're sending in a balance transfer credit card application doesn't mean you get to skip this month's credit card payment. It can take quite a few weeks for a balance transfer to go through. If you don't want to get hit with late fees and default interest rates, make sure you send your payments in on the card until the transfer has been finalized and completed.

3. Don't Squander

Approval of your balance transfer credit card application to a card with a lower rate does not mean you now have extra breathing room in your budget. The goal should be to pay off that card as quickly as possible, and that means paying as much as you can towards the balance each month.

Pay just as much as you would have if your interest rate remained on the higher end. It may not be the fun or glamorous thing to do with your cash, but it will get you out of debt faster and you'll sleep better at night.

And remember, there's probably a reason you're looking to transfer balances from one card to another. Analyze that reason carefully and if there's something wrong with your financial situation address it head on. The balance transfer credit card application is a step towards lowering the cost of your debt, but it can't fix the reason for it.