You might come across a time in your life when you do not have the necessary funds to manage your life. You cannot pay your bills or make necessary purchases, and worst case scenario; you do not have enough to pay off your debts. A balance transfer is the best way to buy you some time to tide over the crisis.
A balance transfer is a very convenient tool you can use to tide over an economic crisis in your household. It is very simple to get one; you just have to show a good credit record to get a good deal. To do a balance transfer, you need to open a new credit card account and transfer all the balance from the old credit card account onto the new one. The transfer will cost a certain fee, but the new credit card account will not charge you any interest rate for a certain introductory period, hence you will get some time to sort out your affairs.
The most common question that many people ask is how much credit limit they can get on their balance transfer card. Normally it ranges between $5000 and $25000. Nowadays, some companies have started offering credit cards with a credit limit as low as $500. It is not possible to apply for a credit card and ask for a certain credit limit. The best way to meet your needs is to apply for at least two credit cards at the same time. There are a couple of reasons why you would want to do this,
Firstly, when you make an online application you cannot be aware of much. You will know just that your interest rate can be as low as 12% or as high as 20%. But you will not know the exact interest rate that you will have to pay on expiry of the introductory period. You might end up with a large credit limit and a very high long-term interest rate. You cannot compare the credit card with another, as you will not be aware of whether or not you received a good deal.
Secondly, you will need to know how long the zero percent interest rate is for. There are several credit card laws that protect the customer from having to fall prey to the whims of money minting credit card companies. But still, you will have to look out for a few dirty tricks. Many credit card companies advertise 0% rates for almost a year, and then end up giving it only for 6 months. You will not know what this is going to be unless you receive the credit card by mail, and then it will be too late to apply for a new one without wasting another months’ worth of interest on your outstanding balance.
Given these factors, it is always better to go for two credit cards at the same time. This way you can decide which one to transfer you balance to based on the response. You will not pay a balance transfer fee unless you make the transfer, and hence you need not pay anything at all apart from the application fee, which will be negligible.