Credit card companies want you! If you hold many different credit cards, or have an online merchant account you probably receive new credit card offers each week that promise that you can transfer your balance. Balance transfer offers are just one of the many results of heavy competition between credit card companies. Fortunately, it’s one that helps you out as well as the credit card companies, but only if you (pardon the pun) play your cards right.

It’s important to know that most small businesses can benefit greatly from these types of offers if you know how to use them. This is especially true to those who have an adjustable small business merchant account. However, don’t take this as a license to open as many credit cards as possible. On the contrary, you should make your balance transfer decisions after a careful weighing out of what will be best for you.

There are three reasons that balance transfer offers make good financial sense. If you get an offer in the mail, and if offers you one of the following opportunities, then you should take it if all other signs point to it being a strong financial decision.

Lower Interest Rate - This is the most common reason that people transfer their balances. Most credit card companies offer 0% interest on all balance transfers. However, this rate is normally only for the first six months and then it climbs to a higher rate. If you’re seduced by the 0% and don’t take a look at the regular rate, you’ll be in for some sticker shock when the six months are done with and struggling to make that regular online payment from that point forward.

Having a zero percent interest rate can save you hundreds of dollars over the course of your credit card usage, but only if the higher rate is reasonable. If you’re moving $1,500 from a 17% interest credit card, to a card with six months of 0% and a regular rate of 20%, you’ll end up paying a lot more. The only time this would be a smart move is if you are planning on paying off that balance within those six months.

Rewards programs - If you currently have a large balance on a credit card that has none of the popular “perks,” it may be worth it to move your balance. Although you generally won’t get a whole lot unless you spend on the new card, you may be eligible for discounts and other rewards that your old credit card company wasn’t offering. Make sure to read the fine print on the new credit card so you know exactly what you can earn.

Debt to credit ratio - An important part of your credit score is your debt to credit ratio. This rate compares the amount of credit you have, versus the amount of debt you have racked up. If all of your cards are maxed out, your debt to credit ratio won’t look that great to potential lenders. When you get a balance transfer offer, take a look at the credit limit they are offering you. If you will be getting more credit and keeping your debt the same, you’ll have a better ratio. Just make sure to not spend on the extra credit available.

Balance transfer offers should be viewed carefully if you can get one of the previously mentioned benefits. It’s important to know exactly what you’re getting out of the transfer and if it, in any way, helps your credit rating and financial picture.