1. Do Your Research  – Go to the link below and do some comparison shopping. For your convenience we have collected information on the best balance transfer credit cards available and reviewed them below. Look for cards that offer the lowest teaser rate for the longest period. When you go to the application form there should be a link to terms and conditions which you should read thoroughly.

Go to Balance Transfer Credit Card Review

 

2. Apply to Several Cards – You may waste a lot of time by applying to just one card because it may take several weeks to process your application.  If you get declined, then you are back at step one. It is better to apply to several cards, thoroughly review the offers that you qualify for, sign up for the optimal one and disregard the rest.

 

3. Sign-Up for the New Card – Read the terms and conditions again and make sure you are comfortable with them. If you have any questions do not hesitate to contact the issuing institution. If you received multiple offers, disregard the rest.

 

4. Complete Balance Transfer Form – Once your application has been approved, request the balance transfer form and carefully complete it.  It is important not to make any mistakes because incomplete or inaccurate information will the delay the balance transfer which usually takes two to six weeks.

 

5. Pay the Minimum Payments on Old Cards – While your balance transfer application is being processed, make sure you continue to make minimum monthly payments on the old cards.  If your new card includes a universal default clause, and you miss or are late on a minimum payment for any of your old cards, the introductory rate will disappear before you had a chance to use it. So read the fine print carefully.

 

6. Receive Notice of Balance Transfer – The new company will send notice that the balance transfer has been completed. Call them to verify this and record the conversation or write down the date, who you talked to, and what they said.

 

7. Call Old Credit Card Companies – Make sure you verify the balance transfer with each of the old credit card companies. To avoid any misunderstandings and to save you a headache later on, call them and record who you talked to, what was said, and the date.

 

8. Receive Billing Statement with 0 Balance – To be completely safe, wait until the old credit card companies send you billing statements with 0 balances.

 

9. Cancel Old Credit Cards – Call or write the old credit card companies and ask them to close your account.  Because closing and opening credit card accounts can affect your credit rating, make sure that in any report to the credit bureau the credit card company notes that the account was closed at your request.  Make sure you cut-up your old credit cards so you are not tempted to use them and run-up more debt.

 

Credit card balance transfers are not for everyone.  If you plan to use this method of debt consolidation you must be very disciplined about making the monthly payments and changing your spending habits. It is crucial that you make the monthly payments on time and without default because the default rate can easily be 30% or more.  Changing your spending habits will greatly benefit your ability to pay-off your financial burden but more importantly if you continue to use your old credit cards and spend money carelessly, you will end up with a bigger debt than the one you were trying to pay-off originally.