Fixed APR Balance Transfer Credit Cards

A balance transfer credit card is a type of card that carries no balance transfer fees. Balance transfers are transactions in which the balance of one credit card account is transferred to another credit card account. This is often done to consolidate credit card balances to accounts that have lower interest rates, in order to repay debts with less interest accrued. Fixed APR balance transfer credit cards offer a fixed annual percentage rate, which means that the rate does not change based on economic factors, but rather remains stagnant as long as you make monthly payments on time. It is important to note that some credit card companies may apply a penalty interest rate to your account balance if you make a single late payment, so it is important to examine the card terms and conditions before applying. Consider the following paragraphs to learn about the advantages of fixed APR balance transfer credit cards, as well as how they can be used to consolidate debt, and how to gain approval for them.

The Advantages of Fixed APR Balance Transfer Credit Cards
The primary advantage of fixed APR balance transfer credit cards is that their interest rates do not fluctuate based on economic circumstances or the preference of the card issuer. This allows the cardholder to calculate their monthly repayments more reliably, thereby simplifying the budgeting and accounting process, and making it easier to repay debts and avoid damage to the credit score. Although the cards initially have interest rates that do not fluctuate, under the universal default clause a single late payment on any one of your other credit cards could cause a completely unrelated balance transfer card to incur a penalty interest rate permanently. Thus, it is imperative to make monthly repayments on time for all of your cards every month in order to continue enjoying the benefits of your fixed APR balance transfer card.

Using Fixed APR Balance Transfer Credit Cards to Consolidate Debt
Fixed APR balance transfer credit cards are often used to consolidate debts from multiple credit card accounts, in order to repay the debts at a lower interest rate. Many balance transfer cards include an introductory period during which time little or no interest is charged to the account balance. By transferring the account balances of your other credit cards, which are most likely currently accruing interest at a rate higher than 10% APR, you can take advantage of the 0% APR introductory period and repay all of your debts with no interest added. Not only do fixed APR balance transfer credit cards allow you to eliminate interest on multiple credit card balances, they also allow you to centralize monthly repayments to simplify the process of escaping credit card debt.

How to Be Approved for Fixed APR Balance Transfer Credit Cards
Unfortunately, while almost anyone with a decent credit score can be approved for a balance transfer credit card, to be approved for one with a fixed APR is a bit more difficult. In fact, fixed APR balance transfer credit cards are often reserved for individuals with good credit, because they provide the additional advantage of having a reliable interest rate. If you’ve recently applied for a balance transfer credit card with a fixed interest rate but were denied approval, do not attempt to apply for another card without first improving your credit score. The fastest way to improve the credit score is to repay your monthly balances in full and on time each month, and never exceed more than 30% of your overall available credit line.