Credit Cards Interest Rates

[jrtv]

I have a chance to do a balance tranfer to 2 cards, one charges 0.785% a month and the other 3.9% p.a. so which is better ?

[Ethel]

The first one works out at over 9% apr.

You need to check if there is a charge for transferring balances - many charge up to 3%, so that would be �90 on a transfer of �3000.

Also, how long does the promotional rate last? Is the 3.9% fixed for the life of the loan, however long it takes to pay it off?

[jrtv]

Hi Ethel, yes the 3.9% is for the lifetime with no transfer fee so that's the best one then ?

[Ethel]

I would say so. The rate is relatively low, and I am convinced that rates are set to rise again before Christmas.

If it's lower than what you are paying now, go for it.

[Ethel]

Oh. I forgot to mention that you should check the minimum repayment each month for the new card.

Make sure it is not too high as to be unaffordable.