When you owe a particular amount of money to a lender, you can do a balance transfer to pay it off and also save a little on repayments of the interest. It is where all or part of the debt or debit balance is transferred using a store card or credit card to some other one. Balance transfer credit cards are a great way for keeping track of the payments made with everything and balance in a place. Many companies of credit cards offer balance transfers for free to entice the people to select their products instead of the competitors’.
Research is necessary for getting offers of a balance transfer. Ideally, cards offering interest of 0% on balances transferred for the longest period of time must be found. You may get some cards that charge fees for the balance transfer, but often you could also get ones that do not. Apply for the required card, and if you have a credit score above 670, you will find many options. However, if you happen to have a credit score of more than 740, you will find much wider offers of card selection.
Before doing any balance transfer, you should empower yourself by gaining information about the current situation of your credit card. You will need to know it to pick appropriate cards for doing the balance transfer. You should also be aware of which balance transfer credit card will fit your particular financial needs. There are many things to consider before making the choice. The amount of money to be transferred should be considered first as all of the debt may be cannot be transferred to a balance transfer credit card. The validity period of the introductory annual percentage rate should also be considered and also whether or not it can be applied to both your purchases along with balance transfers. Most such cards offer attractive 0% APR offers on transfers of balance for a particular period of time along with purchases too.
If you do respond to offers of the balance transfer, you will have to specify who you wish to pay, account number, and the amount of money to be transferred. Once the transfer gets approved, the company of credit card contacts your billers or creditors on the behalf of you and pays the amount to them that you had indicated. The process can take around two weeks’ time. If any of your payments are due before the same, you should probably clear them before the due dates in order to avoid the late fees.
Before the process of balance transfer, remember to read the conditions and terms and also the words in fine print really carefully. You may be unaware of the fact that several balance transfer credit cards charge fees for transfer of balance, typically around 3% to 5% on the amount that has been transferred and it is charged for each balance transfer.
After choosing your desired card that has a fee for the transfer of balance, calculate the costs that are going out to know how much is the transfer cost, and how much is saved on interest to make sense of the whole situation and be sure if it is what you want. Also check if there are any limitations set by the bank such as the validity of APR, any particular restrictions with any cards, and credit limits.
Benefits of balance transfer credit cards
The best reason to opt for balance transfer credit cards is the possibility of getting low rates of repayment interest. Having that can help in catching up with the rest of your present debt and smaller loans up to dollar 1000 taken from high-interest rates lender. That is likely as you might get an introductory or low promo annual percentage rate or APR to pay the required balance for a specified time frame, such as 12 months.
An introductory or low promo annual percentage rate can also help in cutting down the time that is required to lower down your debt. If high APRs are paid, a considerable amount of the payment passes on as interest instead of paying off the main balance itself.
If you happen to have multiple debts, you can consolidate all of the balances into one card having a 0% or introductory or low promo annual percentage rate of the balance transfer. You will not have to pay the different creditor on different due dates. Doing the aforementioned will make you keep track for only one payment per month, instead of multiple cards that have different due dates.
Most Popular Balance Transfer Credit Cards
Chase Slate: Chase Slate offers to you no transfer fees on the 60 initial days of you opening your account. You will also encounter 0% introductory offer of APR on your balance transfers along with purchases for around 15 months of account opening. As a cardholder of Chase, you will be able to be on the top of the credit score by getting access to a free score of FICO every month and also the primary five factors that affect your score.
Citi Simplicity: If somewhere along the line you happen to need a little more time for paying off a large balance, Citi Simplicity can be the best option in such situations. The 0% offer on your purchases along with balance transfer last for around 18 months. The card does not entertain any late fees, has zero annual fees and also no rate of penalty.
Discover it: Discover it makes for a perfect choice for those who wish to get rewards on their cards after paying off their balance transfer. A fine credit history might end up getting you a much lower rate of interest. You can also get free FICO score on the monthly statement of billing.
Balance transfer credit cards are all about getting the best out of whatever your situation allows you to get. It only goes to show how important it is to have your credit score credible for all sorts of circumstances. Be wise in your choices and make sure you go through every process with a good sense of mind.
