A simple guide to understanding balance transfers better
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » Research » Guides » Balance Transfer Cards » A simple guide to understanding balance transfers better

A simple guide to understanding balance transfers better

Add to Favorites:
When you have a credit card, it is quite often easy to get carried away in your spending spree. However, it is not necessary that you always know what you are getting into with a credit card as it can spin horribly out of your control if you are not careful. Everyone likes to have money to spend and sometimes, things careen out of control. It is important to know how it works and then to sort out things. Most people keep hearing about balance transfers and the deals offered by the credit card companies make it seem like the best thing ever. If you have wondered about having an interest free credit card and being able to pay off just what you owe, then that is what you can get if you pick the right balance transfer deal.  However, you need to make sure that you are spending enough time on researching and understanding the terms before deciding to opt for it. If you do not consider what you should about balance transfer offers, you will simply end up with an even more expensive card and too many bills to deal with. There are many things that make a balance transfer attractive, but the ultimate deal is when they offer 0 interest transfers. What you should check before grabbing it is how long the zero interest is for. Often it will specify in the fine print that an offer is for a limited period only. This means that you cannot hope to have a zero interest rate forever on your new card. It will expire at a point and you will have to clear all your payments before that period runs out. In addition many a time, people end up losing money because they do not check if the transfer part is complete and the due date on the old card is still not pending. This makes them defaulters and soon their credit score hits a low. Another important factor to consider is annual percentage rate or APR.  As much as the rates offered as an introductory deal look hard to resist, the APR would be rather disappointing. It becomes important to consider all the details present in the fine print at the bottom of the deal. If you read through it, you will find that things aren’t as rosy as they look.  Often much of the information is difficult to understand, make sure you discuss it clearly until you know what it entails. An additional consideration is with regard to the transfer fees. The issuers tend to charge a transaction fee depending on the amount you wish to transfer. So the bigger the amount you are looking to switch onto a new card, the higher the fee you will need to pay. This can be quite unpleasant and if you are not careful can lead to serious problems eventually. Do make sure you know all the details of the transaction before opting for a seemingly enticing balance transfer deal.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading