Balance transfers are one the smartest and easiest ways to reduce credit card costs. You have to be aware of the terms and conditions of the new card to save on the costs.

Balance transfers are available for good reasons and should be used as such, in that way they will benefit the credit card holders in a big way. Some of these benefits include no annual fees, on most balance transfer credit cards, longer grace periods and additional rewards, rebates or points just for transferring your balances to one program.

Credit card transfers are wonderful benefits, sometimes. If you have received a credit card offer that is boasting being able to provide you with a very low introductory rate if you open a credit card and transfer the balance from another card to this one, look it over carefully. Balance Transfers are sometimes free during the introductory period, but credit card cheques normally attract a charge (either interest or a truncation fee), so be doubly careful with credit card cheques. Most lenders do now charge a balance transfer fee but some do not.

Credit card companies charge varying interest rates on balance transfers and purchases. The most common rate is 0 percent for six through 12 months.