Low short-term interest cards – the offers can be incredibly enticing, especially if you’ve got a high balance on a couple of cards with much higher interest rates. However, most of these cards come with a significant risk. It’s important to read through all the fine print and evaluate your options when considering a low short-term credit card.

Low short-term interest cards came into popularity in the 1980s. Before then, most credit cards carried high interest rates – often as high as 18-20%. In this article, we’ll highlight both the benefits and risks involved in taking advantage of that low short-term credit card offer you’re considering.

Make sure you know how long the “teaser” or “incentive” rate offer lasts. This term means the limited time offer of the low short-term interest rate. The best low short-term card offers are a year in length and do not charge fees for balance transfers during that year’s time. A year’s length of time gives you a chance to transfer balances off cards with higher interest rates and make a dent in the balance before you need to move the money again. Shorter periods of time require vigilant monitoring so you don’t end up accidentally carrying a high balance past the teaser time period.

Make note of when the teaser time period is up and what the new interest rate will be if you have a balance remaining at that time. Compare the new interest rate to the rates you’re paying on your other cards. Is it a higher rate? You’ll want to mark your calendar or blackberry with the date so you don’t hold onto a balance on the card once it goes into that higher interest rate.

Look for hidden charges. Make sure there are no initial sign up or monthly fees, and check to make sure you won’t be penalized for making balance transfers. Check to see if you will be penalized for transferring the balance to yet another card at the end of the teaser rate period.

Be prepared! You’ll want to have an even better credit option ready for when the teaser time is up. At the least make sure you can get your balance transferred back to your old cards, if the interest rates are better than what the new one will be on the card after the teaser time runs out.

Make sure the credit line available will be enough to cover the balance you need to transfer for this to be worth your while.

Evaluate whether or not you want to bother with the hassle. You’ll need to pay attention to dates and make an effort to pay off the balance before the teaser rate time period is up. Are you someone who will remember to move the balance before the teaser rate time period runs out? Will you be able to make a dent on the balance before the time runs out?

Low short-term interest cards can be a great way to save money or pay off your debt without having to pay so much interest. Just make sure you don’t get caught with a balance on the card once the teaser rate time period is over!